Zomato valuation absurd: Rakesh Jhunjhunwala

The sensational public markets debut of loss-making consumer technology startup Zomato got a royal snub from the country’s smartest and ace investor, Rakesh Jhunjhunwala. The loss-making food delivery start-up ended Day 1 (July 23) with a market cap of close to ₹1 trillion with the stock settling 65% higher to its IPO price of ₹76.

“I have learnt two important lessons [in investing]. The first lesson is what I buy is very, very important and [second] at what price I buy is most important. Good luck to Zomato. Let Zomato be worth ₹99,000 crore and Tesla be $600 billion or $6 trillion. I am not going to buy these stocks at this valuation,” said the Big Bull at a webinar organised by investment bank Equirus.