Zomato Analysis
- Personal Investment Analysis:
With my past investing experience, I will explain why I picked Zomato stock to invest in.
Firstly, I will see how the stock is connected to people daily. As you know, Zomato has made people's lives easier through food delivery. Every week everyone at least orders one time a week. So, here I see a good use scale for Zomato.
So, I picked Zomato and started analyzing it from Fundamental and Technical Analysis Perspectives.
Fundamental Analysis:
- Income statement
- The company's annual revenue growth rate of 73.97% over the past five years significantly exceeds the industry average of 26.56%, indicating a strong potential for increased market share.
- EBIT, PBT, and Net Income are slowly turning to a positive Y-O-Y basis
- Balance sheet
- Over the last five years, debt to equity ratio has been 3.68%, vs the industry average of 7.76%
- Current assets/Current liability = 7 (Indicating good liquidity levels) of Zomato
- Cash flow statement
- Cash flow from operating and financing activities is a bit concerning as they are negative, but it is average from investing activities.
Zomato is currently overvalued and making losses from a cash flow perspective, but it has long-term sustainability, so it is essential to see this from a technical analysis perspective.
Technical Analysis:
I have been observing the chart of Zomfromo in trading. The review price faced significant resistance at RS 80-88 and support at 40-50. After this, it gave a breakout, as you can see in the chart, too
-Moving average: major moving average 50,200-day average gave crossover here, too
-the volume of 20 MA also showed cross-over, signifying bullish momentum.
I have also considered several other parameters inTA, but it will be more than the word limit
Entry at 40-55
Zomato is currently overvalued but also focuses on expanding its business like blink it, hyper pure etc., So it will outperform negatives. So I bought Zomato at this price.
2. TATA stocks rise and fall script https://docs.google.com/document/d/18M5CSEX7xDVyuMRHFx1F7l0M_i5vsuVRz38tgheofa8/edit?usp=sharing
3. There are several situations in
-Majorly are the quarterly earnings, Concall, Split Share reports that are going to be released by the company
-Management changes in the company at a higher level
-Any fraud-related issues like in the case
For Instance: A recent 28% drop in Polycab India's share price has raised concerns. The decline, from ₹5,404 to ₹3,878 per share, was influenced by allegations of tax evasion against the company.
Checking the Credibility:
- For Quarterly, we can study the company website or the latest news on the Bloomberg terminal at the time of release
- Unless the company quotes about the management changes, I do not make any decisions based on that
- Always cross-check the news with other reliable media outlets. If the information is correct, multiple credible sources should report it similarly.
Overall, this information helps identify opportunities and red flags. Positive company updates can strengthen an investment thesis(Buying, Holding), while negative news might necessitate a closer look or even a shift in strategy(selling).
The key takeaway is that this information stream allows for a more dynamic and data-driven investment approach.
Sarah Williams
February 13, 2025This blog provided an excellent overview of stock market strategies. The section on risk management was particularly helpful for beginners like me!
Rachel Adams
February 13, 2025The tips on identifying undervalued stocks were incredibly useful. I feel more confident in making investment decisions now.