Current Affairs

  The current scenario at Zomato refers to “A Positive Mindset can Drive a Person but not an Organization.” The top management of Zomato is giving an upper hand to growth rather than profitability in which they are justifying these terms on the mindset that Growth would eventually lead to Profitable Business in upcoming months. Long term Sustainability is still visible to the team. Where the company’s food delivery business saw a macro-slowdown but other quick commerce businesses “Hyperpure” and “Blinkit” displayed substantial growth on local and national level. This growth is definitely a positive development for the company but they aren’t huge revenue contributors to the total revenue. Both these businesses are renowned names in their respective sectors and have done good business overall in Q3 FY23. They only contribute 17.5% (Hyperpure) and 12.75% (Blinkit) of revenue. They did show growth in the quarter but as low revenue contributors, it won’t change much of the topline. The

 Adani Group has been on the radar since they announced the 20000 crores FPO from Adani Enterprises. Since then, there have been a lot of developments in the Adani Group. The First Development was the report written by a US Short Seller Hindenberg. The report stated that its two-year investigation revealed that Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades. Adani responded by saying that it will file a law suit against the report. Hindenberg responded saying that they will ask for documents of the company and will need an answer to 88 straight forward questions that they have asked at the end of their report. After this development, Credit Suisse and Citigroup both withdrew giving out loans on Adani Shares and Bonds. This gave a huge effect on the stocks of Adani Group in matter of a week. (See below image which shows the fall of the stocks in last 1 week from 2nd Feb, 2023). As I am a Fundamental Investor, I was wonde