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Once derided as an expensive mistake, this Zomato bet is having a dream run

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Once derided as an expensive mistake, this Zomato bet is having a dream run
Once derided as an expensive mistake, this Zomato bet is having a dream run
Image credit: Twitter.

Synopsis

Zomato acquired Blinkit for around USD568 million in August 2022. Last week, Goldman Sachs valued Blinkit at USD13 billion. In terms of per-share valuation, the brokerage is valuing Zomato at INR98 and Blinkit at INR119. Zomato’s current market cap is USD20 billion. But does that make Zomato stock attractive?

Kshitij Kaji is a fund manager of large and mid-cap portfolio at Pune-based INR4,000 crore Sageone PMS Fund. He admits that Blinkit's success in quick commerce has astonished him. However, he says that his fund is still not an investor. While Kaji can see the growth potential in Zomato stock with every quarter, he says he already has a list of 20 other stocks in large and mid-cap space that are available at cheaper valuation and better
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The Economic Times