Zomato
Zomato Ltd.As i think Zomato Ltd. is New in Market and around Every Investor Added this stock in there Watch List, that's why it's most active by Volume and it's Movement is very fast and Highly Active UP & Down, Yes Zomato is Not very Financially Strong Like "TATA" or "HDFC", and it's Ballance Shit is also not good, may be there is Risk in Long Term, But Currently Zomato is Unstoppable, as we know Zomato Advertising its product in Youtube or tv and due to this Zomato looks Stronger and really Zomato Captured Indian Market In buying Food Products, in Future this company make Good Profits. If you're thinking for buying Zomato then Must Buy and you can hold it for future may be it will double or 3X your portfolio in next few months, but i recommend to buy and sell, Buy and Sell Continuously you'll make good profits in it.
ZOMATO'S breakuut possible - SYMMETRICAL TRIANGLE PATTERN Zomato listed on 23/5/21 and then creating life time high of 148 and now it has created a SYMMETRICAL TRIANGLE PATTERN on 2H chart . Now zomato can give either side breakout. for upside it can create a new lifetime high or can break its low of 116. A very impressive either side breakout can happen with huge volume.
Zomato Ascending Triangle patternThis is just for education purposes. Do your self-analysis enter the NSE:ZOMATO stock at the right price for good returns.
"Zomato up 85% after listing UBS, JM Financial start coverage with a buy rating. Brokerages have set a target of Rs 165-170 for Zomato shares, a 17-20% gain in the next year from the July 29 close of Rs 141"
The source is Jefferies for the above-mentioned message
TRADING Vs INVESTING - PART 3 - LOGICAL INVESTINGIn continuation of the series, even though I am moving from the IPO subject, I am not yet out of Zomato. The reason being that it actually made me think of a new variant of Investing, that I would like to call as Logical Investing.
Please note that you may/may not find such an investment in the books available on the subject - so if you already think this is being practiced by you, please be good enough to share your experiences for the benefit of the greater good.
So what is Logical Investing as I call it?
When you think of let us say, Zomato, what are the first 2 thoughts that you come across?
I will think of -
A restaurant or take away outlet from where I would be ordering
&
How soon will it get delivered?
Affordability/pricing are the other components but they do not have to invest related linkage so I am not considering those in the post.
So what do these 2 thoughts have to do with Investing?
In my view, here is how they are related -
Whether Zomato IPO hits a bumper listing or not, its source of business growth depends on the quality as well as the number of restaurants or outlets or groups of restaurants/hotels . So I need to check my holdings and see if I have any exposure to - Burger King / Westlife Development / Jubilant Foodworks / ITC ? These are the names of the listed companies that I can think of.
For a few lines, I am venturing into the overseas territory. During the pandemic, one of the worst-hit sectors is the airline industry which is still reeling under pressure. So what some of the airlines did was to come out with a novel idea - I recollect having read about Finnair, the national airline of Finland. It seems that it was well known for its Business Class cuisine. So they came up with a smart idea. During the lockdown periods, they sought approval from the local authorities and started offering business class meals to be delivered to the discerning travelers who were missing its meal service! Soon, many airlines followed suit.
Let us now get back to India.
I hope the reader is now able to appreciate what I am referring to. If in India, the Indian carriers would have thought of such a move , the share prices of IndiGo and SpiceJet, the two listed companies would have seen some upward movement.
So if Zomato business has to blossom, the businesses of some of the restaurants or business partners with whom they are dealing have to blossom first and if any of them is a unit of a listed entity, that is where the first signs of growth would be seen. And as a forward-looking investor, I am interested in buying the shares of those listed entities.
I hope you are in sync with me till now. I am not finished yet so please read on.
My next thought is ---
How would Zomato ensure that they deliver the food of my liking to my dining table?
The answer would be -- it will be delivered by a delivery boy. Correct, but not fully. What mode of transport the delivery boy would use? Motorbike, Scooter or Bicycle? So what are the companies who manufacture these vehicles? What would happen if the business of Zomato roars post IPO? They would need additional partners, additional manpower and those delivery boys/girls would need a vehicle!
So, as an investor, I would like to be invested in --
--the listed companies who offer Food & Beverage Services. as well as the manpower service provider or job hunting sites.
-- So Info Edge or Naukri is the name that rings the bell which is also a lead investor in Zomato.
--Zomato itself as they are the middlemen sort of whose income would also rise with every incremental order delivered and so will the net profit rise.
--Bajaj Auto, Hero motors and TVS Motors whose bikes would be used. I am not sure if Eicher produces affordable bikes and if they do, then I would like to own its shares as well.
Frankly, I had not even thought about this variant of investment till 16-7 evening. I thought about it as my son did a video on Zomato IPO and in 24 hours it received 3000 views so that got me thinking that there is something that is gaining traction and I started thinking logically and tweeted immediately about it and the tweet is given here for your reference.
I thought of restaurants or takeaway outlets when I started writing this article. So I thank all of you for having opened my eyes to a new breed of investible companies!
I am now going to focus my attention on how I can benefit from these companies and would leave you as well with these initial seeds of Logical Investing for you to mull over.
Stay safe, healthy and Happy Investing!
Umesh
TRADING Vs INVESTING - PART 2 - ZOMATO IPO SPECIALFor the purposes of writing this series, I have assumed that the reader is not having a large capital base as, given the current scenario, an average person would find it hard to release funds that can be used for trading / Investing.
Tax definition of Trading & Investing
In a very simple manner, the key difference between Trading and Investing can be explained in the following manner ---
Trading gains would be considered as business income for a trader or as a short-term capital gain for an investor attracting the applicable income tax rate.
Investing gains would be considered as long-term capital gains attracting a lower rate of income tax.
So if I invest in 100 Shares of Reliance at 2100 and sell it within 10 days at 2300, I would end up making a short-term capital gain of 100*200 = 20,000 if trading is not my business income. And I would end up making a taxable income of 20,000 if trading was part of my business income.
Now, if I sell the shares bought above after 367 days at 1950, I would end up incurring a business loss of 100*150 = 15,000 if trading was part of my business income. However, I would end up incurring 15,000 as a long-term capital loss if I was not a trader and trading was not part of my business income or I was a salaried person.
Why look at IPOs?
Historically, IPOs have attracted lots of retailers as on many occasions, they have offered bumper listing gains and the retailers would generally seek quick and riskless gains from the investments made.Logically, the words “ quick and riskless” do not go hand in hand and certainly not with an “investment”. The reason being that investments tend to be for a longer period of time than other means of savings or money-making.
In my view, for a retail person, with limited means to risk their precious capital, IPOs generally offer a good way to start the Investment journey. SEBI has made IPO investments an affordable process for the retail category as the lot size or the minimum amount that one can invest is around 15,000. One can always apply for multiple lots but if I cannot afford more than 15,000, IPO is the best way to go forward.
The major downside of an IPO is that the information related to the company and its financials is available only as part of the prospectus which has to be filed. And retailers would not be having the time as well as the required knowledge to understand, interpret and evaluate the same. Also, would it make time sense to spend a few days or at least a few hours for an investment that may or may not click per expectations? I do not feel so.
With IPOs, there is a 50-50% chance of it being a success on the expected lines.
My experience has not been very encouraging as I have rarely been one of the allottees of the IPOs and when I did get allotment for ICICI PRU LIFE, this is what happened --
Listing Day Trading Information
.
IPO Price
Open
Low
High
Last Trade
Volume
BSE
₹334.00
₹329.00
₹295.50
₹333.90
₹297.65
12,720,399
NSE
₹334.00
₹330.00
₹295.15
₹333.90
₹297.55
89,058,658
The IPO base price was 334 and listed at 330 and closed at 297 - a fall of 11 % on a listing day. The day happened to be a big news day when around mid-morning, the news of the surgical strike was made public and the markets had tanked.
The outcome was that the morning excitement of witnessing a listing gain faded with the gloom of a sharply discounted closing price. I ended up holding it for quite some time and made the typical mistake of exiting just above my cost. From the chart, it is very clear what followed thereafter was a steady rise and I would have been better off had I been an investor than a trader.
Then What Should I do?
Over the last few years, I have become somewhat wiser in dealing with lottery allotments as and when I get. The last was with Nazara Tech. I applied only because of RJ backing and hoped that it would get listed at a good premium.
I was lucky this time and got an allotment . When the day had come, I had already decided that if the listing is at a good premium, I will take my capital out and let the shares representing the profits made remain in my holdings for as long as I can.
So when it got listed at a super-premium and then made a high of 2024, I decided to exit around 1950 but by the time I could place the order and got filled, I got the exit price as 1920. A gain of = 65% just for parking my funds for about 2 weeks! That is certainly not bad. My capital was made free on the day of the listing and which I use as and when I feel to use it for the next IPO - it is now going to be Zomato.
So in this case, my 65% gain would be treated as my business income as I am a full-time trader and if I am able to hold on to my profit based holdings in Nazara for another 260+ days, then I would be eligible to claim any gains out of if as a long term capital gain. As of 09-07-12, the lowest price was 1432 - a good 272 away from my cost price, and assuming I exit at 1432 in the future, I would have earned another 23% gain over the 65% gain which I am holding in the form of Nazara shares.
This is how I propose to manage other IPOs . So my next try would be for Zomato. A lot is being said about it - good/bad. I am going to ignore both the views and apply and see if I get an allotment and if I get allotted, I will have to think about what to do when it gets listed and at what price. Why worry about something that is nowhere in sight?
I hope the above helps you get an idea about how you can make a beginning in the world of “Investing” in the simplest possible manner.
I would love to read your views and experience about IPOs.
Thank you for your time and Happy Investing!
Umesh
P.S. Disclaimer - The views expressed here are purely for educational and informational purposes only and not a recommendation or advice in any manner. I am not a SEBI regd., so please consult your financial advisor or be your own decision-maker as you may deem fit.
A Simple Trading Idea to Trade ZomatoDear All, As Zomato was listed on Friday and we have only 1 Day chart on this. Here I have discussed a simple trick to trade Zomato for coming days.
Disclaimer :
Trading is never ever recommended as it is injurious to mankind. This is purely my study based on technical charts and for educational purpose only. Please do your analysis before taking any trades given by me. I MUST not be held responsible for any profit or loss out of any trades you take on our advice. All Disclaimers Apply.
A different take on Zomato's IPO and its impact on cosIf Zomato's business grows, there's a chance they will require motorcycles. Hero and Bajaj are two leading two-wheeler makers. They also have stakes in EV companies. Another level of looking at it is to look at battery stocks which might also be an interesting proposition. What do you feel?