Goldman Sachs recently delved into the turbulent waters of the Indian internet sector, armed with a compass of analysis to guide investors. Let’s voyage through the currents and eddies of their report to decipher the fate and fair values of these digital titans.
Zomato: A Meteoric Rise in the Offing
Goldman Sachs unfurls a tapestry of optimism for Zomato, painting a picture of revenue growth hurtling at 61% year-on-year by the fourth quarter of fiscal year 2024. This rocket ride bypasses the sector’s mundane average of 25%, hinting at a celestial ascent. A shining beacon, Zomato’s margin expansion lifts it 190 basis points higher quarter-on-quarter in the same period.
MakeMyTrip: Navigating Calm Waters
Goldman Sachs charts a course for MakeMyTrip, foreseeing earnings before interest, taxes, depreciation, and amortization (EBITDA) to soar up to 5%, docking the target price at US$84 from the previous US$61. A breeze of robust 23% year-on-year revenue growth sets their sails for smooth sailing in the choppy seas of India’s online travel sector.
Nykaa: The Beauty in Disguised Challenges
Goldman Sachs embraces Nykaa with cautious neutrality, projecting an uphill revenue growth trek for Nykaa’s beauty and fashion segments in the fourth quarter of fiscal year 2024. Yet, clouds of uncertainty loom over Nykaa’s path to profitability, especially in the realms of fashion and business-to-business sectors.
Paytm: Riding the Regulatory Rapids
Goldman Sachs steers through the regulatory storm brewing for Paytm, lowering the target price amidst expectations of revenue decline in the fourth quarter of fiscal year 2024. Regulatory tides orchestrated by the Reserve Bank of India create turbulence for Paytm’s financial services arm, challenging its course through perilous waters.
Info Edge: Navigating Through Murky Waters
Goldman Sachs pilots Info Edge through murky revenue waters, predicting a modest 11% year-on-year growth in the fourth quarter of fiscal year 2024. Despite improved hiring trends buoying the ship, the company’s close ties to the sluggish Indian IT sector cast shadows over its potential trajectory.
X (formerly, Twitter) – Aayush Khanna
