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The Zomato Story

TRADING OF LOSS - NEW PARADIGM

Company X accumulated losses of over Rs 4,600 Crore

Incurred Loss of Rs. 106.9 Crore in 2018
Loss of Rs. 1000 Crore in 2019
Loss of Rs. 2400 Crore in 2020
Loss of Rs. 800 Crore in 2021
Loss of Rs. 350 Crore in 3 Months Apr to June 2021

Aggregating Total Loss of Rs. 4600 Crore from 2018 to 2021 June

With these Losses continuing to mount high, they managed to stand on their feet from 2018 till Today. Strange that it is not a year-old Business nor having previous years of accumulated profits that can set-off their current and future Losses. Hence it is quite evident that Net Loss is funded by Capital and Debt. But why do the Investors keep pumping the fund in the Startup even when they see no Profit in 4 years.

If the Business was running on Loss

Q) Were the Employees not paid ??
Answer is No, They were paid handsomely

Q) Were the Customers forced to Pay the high amount ?
Answer is No, they were instead given Meals at high discount

Q) Might the Founders and Top Brass were taking less Perks ?
Answer is No,

Founder Basic Salary was Rs. 3.50 Crore
Co-Founder -Gross Remuneration was Rs. 3.70 Crore
CTO 1.50 Crore
CFO 3.26 Crore

Q) Any Income Tax
A: Since the Company was running at a loss, there is no Income Tax payable

So who was bearing the brunt of Heavy Loss ??
The Answer is the Investor of X Company having stakes in the company.


It is obvious that the Loss of 4670 crore is funded by External Investor

So isn't it the Existing Investor of X Company at Loss?
How does this External Existing Investor gain if the Company is running Loss ??

Now here is the trick.
There is a Trading of Loss.
What If I tell You that Loss can be sold at a Profit??
Yes that is possible.

Investors (Top 5 Investors were holding around 50% Stake) who pumped funds into this startup have already had their funds eaten up by the losses. Yet in the books they held Numbers of Share and % of Stake.


VALUATION- The Talking Point

Now, The Company went for Independent Valuation by a Valuer

The Valuer valued the Loss Making Company for Rs.60000 Crore !!! Strange but true.

With this Valuation, the Company went for IPO. That means they are going to list their Shares in the Stock-market making their Shares easily accessible to the Public to Purchase, and sell further.

Strong Advertisement, Endorsement by Some Experts, News Channels, Social Media, etc created such a hype in the market of forthcoming IPOs that it gave the impression to every Stock-market Trader of a Cake 🎂, that no one was going to give a miss.

With such a Marketing, Valuation and Expert Endorsement, IPO got oversubscribed by whopping 38% with Listing priced at Rs 116 which was Valued at 72-76 (which itself was questionable)

The interesting point was that Company X went for IPO for Rs. 9400 Crore, Out of Which only 400 Crore was only pumped into Company, Rest 9000 Crore was Part of Offer for Sale by Existing Investor. (Did anyone notice that Subscribing to IPO means purchasing Shares from existing Investors which generally people are reluctant to do, as they are more interested in funding the company than buying such shares from existing Investors.) That means out of 9400 Crore subscribe and funded by Public in the form of Rs. 116 share, first 9000 crore will go to the Early Investors.

Now here we go !!!!

Who are these Early Investors ?
These are the same people who funded the loss making Company and now they sold their stake at higher profits.

Now the Value of Share of Early Investors is 1010 times higher than when they purchased the share at first.

So, for 4700 Crore Loss Making Company, everyone was paid more than their worth
- Employee
- Customers
- Founders
- Top Management
- And at Last and at Higher rate - The Investors

So who is now Handling the Loss ?
*Yes, WE Public holding shares of X Company !!!*

Right.
The Loss has been passed on from the Top 10 Investors to the Public at a Profit ranging from 60 to 1010 times !!

This is the Stock-market for You !!!!
And, a new way of making money.

*CREATE A VALUE PERCEPTION, and NOT VALUE.*
*_Sell the DREAM and not PERFORMANCE._*
*PROFIT is history.*
*_Market Valuation is the way to make money._*

Target 1 and 2 seems to be hitted soon

So, as expected... No major fresh buying today also as now FIIs are almost completely out of stock futures. Today also we can see stock specific falls and in index also I am expecting good downside because FIIs have also cut a big amount of their index longs.

608tvs motor now all target done 🚀🚀

Target 1 done 🚀🚀

List of companies with more than 50% Market Share:

1) Maruti Suzuki (passenger cars)
2) APL Apollo (structural & pre galvanized tubes)
3) CDSL (investors accounts)
4) Interglobe Aviation (air traffic passengers)
5) GMM Pfaudler (glass lined equipment)
6) Asian Paints (decorative paints)
7) Colgate (oral care)
😎 Symphony (coolers)
9) PGHH (female care & vaporub)
10) La Opala Rg (opalware)
11) HLE Glasscoat (filtration & drying equipment)
12) Delta Corp (online poker games)
13) Bajaj Auto (3W segment)
14) Vinati Organics (IBB)
15) OCCL (insoluble sulphur)
16) LMW (textile machinery)
17) Bajaj Consumer (almond hair oil)
18) Indiamart Intermesh (online B2B Classified space)
19) Vst Tillers (power tillers)
20) Sanghvi Movers (overall domestic crane hiring market)
21) Emami (antiseptic & male grooming)

List of companies with more than 60% Market Share:

1) Concor (domestic container cargo transport)
2) Exide (lead batteries)
3) Naukri (Indian job market space)
4) Praj (ethanol plant installing)
5) ACE (mobile & tower cranes)
6) Pidilite (adhesives)
7) Jamna Auto (leaf spring)
😎 CAMS (RTA within mutual fund industry)
9) Time Technoplast (polymer based industrial packaging)

List of companies with more than 70% Market Share:

1) ITC (cigs)
2) Honda Siel (portable power generators)
3) Hindustan Zinc (primary zinc)
4) Asahi India Glass (automotive glass)
5) NRB Bearings (needle roller bearing)
6) Suprajit (2w cables)
7)Greaves Cotton (3w diesel engine)

List of companies with more than 80% Market Share:

1) Wabco (medium & heavy vehicles braking system)
2) MCX (commodity trading)
3) Coal India (coal production in India)
4) Eicher Motors (250 cc bikes category)

List of companies with more than 90% Market Share:

1) IEX (power trading)
2) Zydus Wellness (sugar free product)

List of companies with 100% Market Share:

1) IRCTC (rail network)
2) HAL

FTI- C&p

Tvs motor 620🚀🚀

ITC should be named GITC, Govt of India tobacco product. Paise tho govt bana raha hein isse!

INDIA PANEL LIKELY TO SEEK RAISING TAX ON TOBACCO TO 75% OF RETAIL PRICE IN SHORT TERM

#ITC

#BREAKING