Big Bull Rakesh Jhunjhunwala is not carried away by Zomato’s stellar listing on the stock market. For him, He says, the capital is not so important but the business model.
Jhunjhunwala explained: “What I buy is very important, at what price I buy is the most important. Let Zomato be worth Rs 99,000 crore and Tesla be $600 billion or $6 trillion. I am not going to buy these stocks,” he said.
Rakesh was speaking at at a webinar organized by Equirus, India’s Big Bull wished Zomato good luck but said he is not going to buy its shares.
Big Bull won’t bite into Zomato Shares
He said he only wishes that people give focus only to business models which produce cash rather than taking foreign money and burning billions in dollars.
“I am interested in a cash flow model, valuations will have to follow. My valuations should not be more important than business model and sustainability,” he said, adding that people are being far optimistic about how fast new-age companies would produce cash.
“Who built Zara or Walmart? The capital is not so important but the business model,” he said.
The Big Bull Says“Today you value Zomato at Rs 1 lakh crore. But when is Zomato going to get Rs 3,000 crore of cash. In the stock market, it’s important how long it takes, it’s more important how long it lasts,” he said.
