Harsh Goenka surprised at Zomato valuations despite losses compared to hotel, QSR chains

Harsh Goenka, Chairman RPG Enterprises, has expressed surprise at the high valuations being denoted to Zomato despite continuing losses while large hotel and restaurant chains are languishing.

“Can anyone explain to me – Top 20 hotels including global Indian hotel brands – Total Market cap – 44,000 crs. Top 6 QSR chains serving millions of consumers – Total Market cap- 60,000 Crs. ZOMATO – Continuing huge losses. Hold my vadapav! Market cap – 60,000 Crs ???,” Goenka said in a tweet.

The market cap of Indian Hotels is Rs 17,446 crore, EIH Limited is Rs 7,063 crore, Mahindra Holidays is Rs 3,763 crore, Chalet Hotels is Rs 3,893 crore and all other listed hotel companies put together it is less than Rs 44,000 crore.

Similarly, in the case of quick service restaurants, Jubilant Foodworks is Rs 41,496 crore, Westlife is Rs 7,990 crore, Burger King is Rs 6,056 crore and combining other QSR chains the aggregate number is Rs 60,000 crore.

Zomato had a net loss of Rs 682 crore for nine months of FY 21.

Market investor, Giriraj Daga said in a tweet, “Bull case working of Zomato – More than 60 per cent of Indian households need to order once a week to justify the current valuation.”

“This means 16 crore households (out of total 25 crore) will need to order once a week to reach this number,” Daga said.