CallMeShirley

"I wonder how Jefferies has given a target price of Rs. 520/share on Mamaearh - on the listing day, it was already at 93.5 times EBITDA" -> Need more people like this on LinkedIn!

12mo ago

majboormajdoor

We are missing an entire generation of Bears in research. Due to 2 decade low Interest rates. Some bears have burnt themselves, others lost patience and were ridiculed.

It is hard to be a bear.

spymig

Fintech Startup12mo

Well said

AlphaGrindset

Series A Startup12mo

Lovely observation
Makes so much sense

Royalflush

Stealth12mo

These investment banks are extremely biased. Used to have to read a lot of these reports in the past. You'll notice that they end up not moving from their original thesis for multiple quarters, until it's already too late

Their research is excellent and deep, but always biased.

Tech8

Stealth12mo

Can you explain what can be unbiased opinion, coz i feel something has to be biased for report to be written with available information and data

spymig

Fintech Startup12mo

Bias here is caused by the potential relationship with the company. If the investment banking div is serving a company, the equity research wing is bound to be biased coz of the relationship with the company

TLDR: Sell rating = bad for relationship

LightMile44

MongoDB12mo

It was already down to 254 today and then someone pumped it to 317. Huge pump and dump coming, retail investors would get trapped. Someone bought huge blocks in open market at 254-260 range and made a quick 20% in a single day. It shouldn't be more than Rs 20/share based on valuations. The entire concept of IPO is flawed in India, it isn't to raise capital, but to give glorious exits to VCs, Founders, etc. There will be IPOs for Ola, Oyo, Byjus, and until someone teaches Mamaearth a lesson, none of these fraud companies will understand.

Darkblack

Meesho12mo

Ipo is always a liquidity event first, branding event second and then a capital raising event even globally.

LightMile44

MongoDB12mo

I accept it totally. But what I have seen from the mindset having worked in the startup ecosystem for 4 years, is not to build for sustainability and profitability but to make a quick buck, get to 1-2M ARR and then sell it off for 10-15x revenue multiple. That's why most don't either have a product which addresses a business problem and the failure rate is high compared to startups in Singapore, Western world..

Corpdaaku

Student12mo

Storytelling is an art and these analysts are taught to engage audience by creating la la land stories to buy stocks. But the valuation of stock can only temporarily move by these reports. What about the execution? No one gives a damn to the product and execution.