🚀 New Economy vs Old Economy: A Tale of Contrasts As the digital wave transforms industries, it's hard not to marvel at the meteoric rise of "New Economy" companies. Let's take Zomato as a shining example. With its Market Cap surpassing Coal India, it's tempting to declare the new guard victorious. But wait… let's peel back the layers. 🔍 The Dividend Dilemma While Zomato’s market valuation soars, Coal India quietly reminds us of the power of fundamentals. In fact, Coal India’s total dividend payment in a single year is greater than Zomato's total revenue. Yes, you read that right—dividends alone, a tangible return to shareholders, outstrip the entire revenue engine of Zomato. 💼 Tax Titans And here’s the kicker: Coal India's tax contributions in a year are nearly equal to Zomato’s total revenue. Think about that. What Zomato generates from its cutting-edge delivery ecosystem, Coal India matches just in taxes—fueling infrastructure, education, and more. 🌟 What This Means for Us The rise of the New Economy isn't just about growth; it’s about redefining how we perceive value. Yet, the Old Economy continues to anchor stability and sustainability in ways we often overlook. So, here’s the question: Is the allure of "potential" overshadowing the unmatched solidity of fundamentals? Perhaps the real winners are those who can balance the dynamism of the new with the resilience of the old. What’s your take on this contrast between innovation and tradition? Let’s discuss in the comments! 👇 #NewEconomy #OldEconomy #Zomato #CoalIndia #Investing #BusinessGrowthZomato
Bhavesh Garg’s Post
More Relevant Posts
-
New Economy vs. Old Economy: A Case in Contrasts It’s fascinating to compare the dynamics of two very different Indian giants—Zomato and Coal India. While the tech-driven Zomato commands a market capitalization greater than Coal India, the story doesn’t end there: • Coal India’s annual dividend payout alone surpasses Zomato’s entire revenue. • The taxes Coal India pays in a single year are almost equal to Zomato’s total annual revenue. This stark contrast highlights the nuanced landscape of India’s markets, where high valuations in “new economy” firms meet the substantial, tangible impact of “old economy” stalwarts. #NewEconomy #OldEconomy #MarketCap #IndianMarkets #BusinessInsights #Investment #Valuation #StockMarket #CorporateFinance #IndiaInc
To view or add a comment, sign in
-
There’s something fascinating (and a bit crazy) when you compare Zomato with Coal India. 👉 Zomato’s market cap is higher than Coal India’s! Zomato Market Cap = ₹2.83 Tn Coal India Market Cap = ₹2.56 Tn 👉 But here’s the twist: Coal India pays more in dividends than Zomato earns in total revenue! Coal India Dividend 2024 = ₹15,600 Cr Zomato Revenue 2024 = ₹12,000 Cr 👉 Even more interesting? Zomato’s entire annual revenue is almost equal to the income tax Coal India pays in a year! Coal India Income Tax 2024 = ₹11,400 Cr Zomato Revenue 2024 = ₹12,000 Cr What’s the big takeaway here? 1️⃣ Boring businesses that aren’t in the consumer spotlight often generate way more profit than the so-called “sexy” ones. 2️⃣ Narratives and marketing can sometimes drive valuations far beyond the business’s financial fundamentals. Coal might be old-school and not a consumer favorite, while Zomato represents the “futuristic, digital economy.” But the numbers don’t lie: profits and value often hide in the businesses we overlook. So the next time you look at valuations, ask yourself—what’s real, and what’s just good storytelling? For more sharp insights on businesses and valuations, follow Bharatpreneur! 🚀 #BusinessInsights #StartupVsTraditional #ValuationGame #BusinessFundamentals #FinancialWisdom #HiddenOpportunities #Bharatpreneur #Entrepreneurship
To view or add a comment, sign in
-
India's economy: A week of twists and turns. It's been an action-packed week, and I wanted to share some key updates that caught my attention: -> Zomato's Big Move Zomato is set to buy Paytm's entertainment and ticketing business for ₹2,048 crore. This bold move will expand Zomato's "going-out" offerings, integrating dining, movies, sports, and more into a single platform called 'District'. It's a win-win: Zomato diversifies, while Paytm refocuses on core financial services. -> GDP Growth: Slowing but Still Growing ICRA predicts a 6% GDP growth for the June quarter - a six-quarter low, but still impressive given global economic challenges. The RBI maintains an optimistic 7.2% forecast for FY25. -> FMCG and Tech Sales Shine India stands out in Asia-Pacific with double-digit growth in modern trade FMCG and tech durables sales. Premium products are driving this trend, accounting for 40% of FMCG and 30% of tech durables sales. -> FDI Inflows Surge Foreign direct investment jumped 26.4% to $22.4 billion in April-June. Manufacturing and financial services are the top draws, with Singapore and the US leading investors. -> Oil Import Dependency Rises India's reliance on imported oil has crossed 88%, highlighting the urgent need for domestic production boost and alternative energy sources. -> Corporate Employment Growth Slows A Bank of Baroda report shows employment growth in the corporate sector declined to 1.5% in FY24 from 5.7% in FY23, based on data from 1,196 companies. -> Outward Remittances Drop June 2024 saw a 43.93% decrease in outward forex remittances by resident Indians, falling to $2.181 billion from $3.890 billion last year. What do you think? Is India's economy headed in the right direction? #IndianEconomy #EconomicTrends #BusinessGrowth
To view or add a comment, sign in
-
Zomato, with a market cap of ₹2,81,000 Cr, surpasses Coal India's market cap of ₹2,44,000 Cr—a surprising contrast when we compare their financials. In FY24: Zomato's revenue stood at ₹12,000 Cr, while Coal India's revenue was over ₹1,42,000 Cr, more than 10 times Zomato's. Coal India's profit reached ₹37,000 Cr, over 3 times Zomato's total revenue. Even Coal India's tax contribution of ₹11,000 Cr nearly matched Zomato's total revenue. This stark disparity highlights how investors often prioritize growth stories and "fancy" businesses over stable, cash-generating giants like Coal India. Is it time to rethink how we value profitability and sustainability in investments? #coalindia #zomato #valuation #equity #investments #shares #wealthmanagement #banking
To view or add a comment, sign in
-
📢 Financial News Round-Up – November 13, 2024 Here’s a quick rundown of today’s top stories shaping the financial landscape: 1. Inflation Surge and RBI Watch 🔍 Inflation has hit a 57-month high in India, largely driven by rising food prices. This surge has raised questions about whether the Reserve Bank of India (RBI) will need to take additional measures. With persistent inflationary pressure, future interest rate cuts may be delayed, potentially impacting borrowing costs for consumers and businesses alike. 2. Market Volatility Continues 📉 Both the Sensex and Nifty50 are in a correction phase, down approximately 10% from their annual highs, leading to a significant market cap wipeout. Analysts suggest a cautious approach as market volatility is expected to persist amid broader economic uncertainties. Now may be the time to reassess portfolios with a focus on long-term resilience. 3. Swiggy IPO Buzz 🚀 Swiggy’s IPO, the second-largest in India this year, has sparked excitement and some debate around its valuation compared to industry peers like Zomato. This IPO highlights the robust potential of India’s tech sector, even as other sectors face headwinds. Swiggy’s successful listing underscores ongoing investor interest in digital platforms with strong growth trajectories. 4. Government’s Energy Efficiency Push 🌱 In a move toward sustainable growth, the Indian government is preparing a new incentive program aimed at helping SMEs improve energy efficiency. Expected to launch next month, this initiative aligns with India's carbon reduction goals and promotes greener practices across industries. State utilities are also under review for potential listings to enhance transparency and operational efficiency. 💡 Stay Ahead – Stay Informed! The economic landscape is constantly evolving, and knowledge is power. Whether you’re an investor, business owner, or finance enthusiast, staying updated on these trends can help you make smarter decisions. 👉 Ready to act on these insights? Start by reviewing your investment strategy, budgeting for potential interest rate impacts, or exploring opportunities in the growing energy efficiency sector. #FinancialNews #IndianEconomy #InvestmentTips #SustainableGrowth #FinanceUpdate
To view or add a comment, sign in
-
Few trends of Indian markets are quite disturbing today. Zomato is trading at a revenue multiple of 13x with a PE ratio of 430!!! No doubt Zomato is a very transformative company with Blinkit disrupting the Q-Comm segment but a company having a revenue growth of just 30% YoY in its early adopter stage commanding a valuation higher than Tata Steel is just insane!!! Ideally, this stock can’t be priced above Rs 100 / share (even then its PE stands at an insane 120-130 levels). Next is Ola Electric. A loss making company manufacturing substandard products with even a more substandard after sales service is being valued at a revenue multiple of 7x – this is even though its MS is dropping every month at a significant pace!!! Add it to the fact that 2W EV industry is stagnant over last 12-15 months despite aggressive incentives from the government!!! Similar is the case with other EV stocks – even though EV industry overall has stagnated from early adopter stage and penetration one of the lowest in the world – all EV stocks have gone bizarre!!! EV industry itself is facing a slowdown globally – but expectation is that India magically will somehow pull the show – despite the historic fact that India is terrible in building any level of physical infra- let alone EV!!! All the midcap & small cap valuations are at insane level!!! IPOs are being put into the market at record levels with subscription exceeding 100x in many cases. An ex- banker comes out and says that bank deposits are a thing of past even though Credit to Deposit Ratio is at the worst level in last 50 years!!! All this reminds me of one major bubble – Souq Al Manakh – that developed in Kuwait in 1980’s which led to a private stock market being the 3rd largest stock market in the world. The craze amongst everyone was to invest in stock markets and drive speculation – which led to huge expansion of credit led by post dated checks. Once the market crashed – Kuwait’s economy had gone for a toss!!! As in the case of India – consumption is slowing down. The much-anticipated festive season business will surprise everyone to the downside!!! Along with this US consumer slowdown as well as a potential rebound in US inflation in Nov – Dec due to loosening of financial conditions – will take a toll on Indian market!!! The biggest worry is that – if market crashes by 10-15% by December from current levels with midcap and small cap correcting by 30-50%; along with already slowing consumption – will put Indian economy in the slow lane (5-6% growth) for 1-2 years to come. Because any sane mind knows – these valuations are not sustainable and retail investors are jumping in this madness without any thought !!!
To view or add a comment, sign in
-
📢 Big Changes in the BSE Sensex! On December 23, 2024, Zomato is set to join India’s benchmark BSE Sensex, replacing JSW Steel. This shift reflects the evolving dynamics of the Indian stock market and the rising importance of the digital economy. 🌟 What’s Driving the Change? 1️⃣ Phenomenal Performance: Zomato's stock surged 112% in 2024, achieving a market cap of ₹2.33 lakh crore. JSW Steel, while steady, saw a modest 27% growth this year. 2️⃣ Digital Growth Era: The inclusion of Zomato signifies the growing dominance of technology and platform-based businesses in India’s economy. With a 69% revenue growth (Q2 FY24) and profitability milestones, Zomato exemplifies the future of India Inc. 3️⃣ Sensex Reconstitution Criteria: Companies are evaluated on metrics like float-adjusted market capitalization over six months. Zomato’s stellar performance met these thresholds, outpacing JSW Steel. This reshuffle ensures the Sensex remains a true barometer of India’s market trends and economic progress. As we move towards a tech-driven future, such changes reflect the pulse of our economy. 🚀 #StockMarket #SensexUpdate #Zomato #JSWSteel #IndianEconomy #DigitalIndia #MarketTrends #Investments
To view or add a comment, sign in
-
There’s a lot of buzz around Zomato’s dream rally of 120% this year versus Coal India barely being able to deliver returns. The other day my team was discussing it and I believe there are 2 POVs here. Let me try presenting them... 🏭 Coal India Market cap: ₹2,35,046 Cr TTM #revenue: ₹1,40,702 Cr Net #profit: ₹36,013 Cr 🍴 #Zomato #Market cap: ₹2,65,143 Cr TTM revenue: ₹15,855 Cr Net profit: ₹742 Cr 𝐋𝐞𝐠𝐚𝐜𝐲 𝐯𝐬 𝐇𝐲𝐩𝐞: Sure, Zomato’s got the shiny "new-gen" tag, but Coal India’s been raking in profits that Zomato could only dream of – ₹36,013 Cr vs ₹742 Cr. Guess boring old coal still lights up more #wallets than trendy food delivery, eh? 𝐅𝐮𝐭𝐮𝐫𝐞 𝐯𝐬 𝐅𝐨𝐬𝐬𝐢𝐥: Zomato, with ₹742 crore, has a bigger market cap. Who needs profits when you’ve got vibes and delivery boys? Maybe this new-gen dream "will" pay off someday—after all, hope's the best investment. Maybe the food app revolution outpaces Coal India's "fossilised" #business model. #Investors often bet on innovation and disruption, valuing what the future could hold rather than what the present shows. 𝘞𝘩𝘢𝘵’𝘴 𝘺𝘰𝘶𝘳 𝘵𝘢𝘬𝘦? 𝘐𝘴 𝘵𝘩𝘦 𝘮𝘢𝘳𝘬𝘦𝘵’𝘴 𝘰𝘱𝘵𝘪𝘮𝘪𝘴𝘮 𝘧𝘰𝘳 𝘵𝘦𝘤𝘩 𝘫𝘶𝘴𝘵𝘪𝘧𝘪𝘦𝘥, 𝘰𝘳 𝘢𝘳𝘦 𝘸𝘦 𝘭𝘰𝘰𝘬𝘪𝘯𝘨 𝘢𝘵 𝘢𝘯 𝘰𝘷𝘦𝘳𝘷𝘢𝘭𝘶𝘢𝘵𝘪𝘰𝘯? Thanks Govinda Kishora K for all the data points!!
To view or add a comment, sign in
-
𝗖𝗼𝗻𝘁𝗿𝗮𝘀𝘁𝗶𝗻𝗴 𝗚𝗶𝗮𝗻𝘁𝘀: 𝗡𝘂𝗺𝗯𝗲𝗿𝘀 𝘃𝘀. 𝗡𝗮𝗿𝗿𝗮𝘁𝗶𝘃𝗲𝘀 In the fascinating world of markets, contrasts like these often steal the spotlight: 💡 Zomato, a digital-first disruptor, boasts a market capitalization that surpasses Coal India, a legacy powerhouse. Yet, Coal India Limited’s annual dividend payout exceeds Zomato’s total revenue. Even more striking, Coal India Limited’s tax payments for the year nearly match Zomato’s entire revenue. This comparison underscores the diverse ways markets assign value—balancing future growth narratives with strong cash flows and consistent returns. It’s a vivid reminder that the market values both innovation and resilience in unique ways. 🌟 What’s your take on this intriguing disparity? Let’s discuss! 👇 #Zomato #CoalIndia #Fundamentals #Stastics
To view or add a comment, sign in
-
Zomato’s market cap is bigger than Coal India’s—because apparently, delivering pizzas is more valuable than fueling the nation. Zomato’s market cap is now soaring at ₹2.8 lakh crore, casually surpassing the "humble" ₹2.57 lakh crore market cap of Coal India. But wait—Coal India annually pays out a dividend of over ₹28,000 crore, which is just slightly higher than Zomato’s total annual revenue of ₹15,855 crore. And, for the cherry on top, Coal India’s tax payment of ₹14,100 crore last year is nearly equal to Zomato’s entire revenue. It seems the real unicorn here is hiding in the coal mines! Given the gap between market valuations and real-world contributions, is the focus on tech-driven valuations in markets really reflective of economic value? Or are we missing the bigger picture? Let us know your thoughts in the comments! #MarketValuation #TechVsTraditional #Zomato #CoalIndia #StockMarket #Investing #BusinessValuation #EconomicValue #SustainableGrowth #DividendStocks #InvestmentInsights
To view or add a comment, sign in