Daily BriefsIndia

Daily Brief India: Zomato, Apna, Tesla Motors, International Business Machines, Netflix Inc and more

In today’s briefing:

  • Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest
  • Apna Tearsheet – LinkedIn for the Masses
  • Tesla Inc.: Capacity Expansion
  • International Business Machines (IBM): The Databand Acquisition & Other Drivers
  • Netflix Inc.: Ad-Supported Subscription To Counter Subscriber Losses & Other Developments

Zomato Placement – Opportunistic Selldown, Momentum Hasn’t Been the Greatest

By Clarence Chu

  • Uber (UBER US) is looking to raise US$420m in its share sale in Zomato (ZOMATO IN). The selldown will be a clean-up sale.
  • Uber had earlier inherited its stake in Zomato in 2020 when it sold UberEats India to the latter. 
  • We had earlier flagged the possibility of a selldown given that most of Zomato’s investors would come off their respective one-year lockups. 

Apna Tearsheet – LinkedIn for the Masses

By Pranav Bhavsar

  • Apna (1826169D IN) ‘s is India leading networking and jobs platform primarily targeted towards the +250 million grey and blue collared workers, who usually are not on Linkedin. 
  • Channel feedback is mixed, Apna is not the only platform of choice. Community initiatives and vernacular interface are key differentiators along with simplicity. 
  • Profitability could remain a challenge, Monetisation is work in progress. The model is interesting, but making money off the bottom of the pyramid has never been easy. 

Tesla Inc.: Capacity Expansion

By Ishan Majumdar

  • Tesla had been in the process of carrying out upgrades which resulted in a lengthy shutdown of its Shanghai factory.
  • The company faced its fair share of challenges but had a highly resilient quarter and managed to produce an all-around beat.
  • The most significant accomplishment was setting production records in Shanghai and Fremont in June.

International Business Machines (IBM): The Databand Acquisition & Other Drivers

By Ishan Majumdar

  • As a legacy tech company, IBM may have seen a slowdown in its growth trajectory but its acquisition-led growth approach continues to work.
  • With this performance, the company is maintaining its model of mid-single-digit revenue growth and a double-digit performance in IBM Consulting.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Netflix Inc.: Ad-Supported Subscription To Counter Subscriber Losses & Other Developments

By Ishan Majumdar

  • Netflix has had a bad 2022 so far.
  • The company continued with its trajectory of subscriber losses in the most recent quarter and lost another million subscribers.
  • Given the current uncertainty levels, we give Netflix a ‘Hold’ rating with a revised target price.

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