Jeswani expects Zomato to list at a valuation around $15 billion, but “it will have to grow much faster than it is now to sustain such valuations.”ĭon’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. since there is a scarcity of growth in India to be frank,” said Amit Jeswani, Founder and Chief Investment Officer at Stallion Asset Management. “Investors will seek to pile on to stories like Zomato because that is where growth is. This is natural to induce a FOMO (fear of missing out) factor among asset managers in India,” Ambit Capital said.įurthermore, the scarcity of options to own a pure-play technology stock in portfolios is also likely to drive Zomato’s valuations.įoreign investors, who have been waiting to gain exposure to India’s technology sector, have driven valuations of a handful of listed internet platform companies such as Info Edge India and IndiaMART Intermesh to beyond rational justification and are expected to lap up a stock like Zomato. “The power of innovation and technology has been well-documented in markets of China, where massive wealth creation has happened in the technology space. The recent success of mutual funds like the one from Parag Parikh Advisory Service has been attributed to the fund’s exposure to some of the biggest tech stocks in the US, such as Facebook and Alphabet. DoorDash stock rose 4 over a five-day trading period ending, compared to the broader market (S&P500) which declined -0.2 over the same period. Such has been the yearning to own technology stocks and participate in what appears to be a once-in-a-generation rally, that domestic mutual funds have launched new fund offers that would exclusively invest in such stocks or exchange-traded funds with exposure to technology stocks.

Money managers said Indian investors have been deprived of opportunities to invest in the internet and technology space, which has been witnessing a boom in markets such as the US and China despite being home to some of the biggest tech unicorns in the world.

Door dash stock projection