Whenever we talk about investment, then every investor has a preferred place where they want to invest
And there are multiple and different ways where they want to invest
Today we are going to talk about such an option
Consider that you want to take exposure in Zomato
And with that in Starbucks as well
Because you think that maybe Zomato is performing well
And I want to invest in such a share
If you invest in Zomato then there will be a positive impact
There, if you think that Starbucks is performing well
And if I want to take exposure in Starbucks, then in which company should I take exposure
Today we are going to talk about those two companies
If you invest in their shares
You will directly or indirectly get exposure in these two companies, which are Zomato and Starbucks
So if those companies perform well, their revenue will become better
If their revenue improves and their profit improves, then their share will go up
I, Jagdeep Singh, welcome you to the Groww channel
Let us start today's video
First we will talk that if you want to invest in Zomato
How can you invest in Zomato
So the name of the company for an investment in Zomato is infoedge
If I talk about the share price of infoedge
If I compare that to the share price of 2015
Now its share price used to trade at 2300
And compared to 2015, now it has given a return of 180%
Now you must be thinking why I took the name of infoedge
How will I get an exposure in Zomato by investing in infoedge
So I will talk a little about infoedge, if you haven't heard about infoedge
It is the parent company of naukri.com
This company has different companies where it has invested
Now you must be thinking why I took the name of infoedge
By listening you must be thinking that if you have heard the name of infoedge
infoedge is the parent company that owns naukri.com
Apart from this, if I talk about infoedge
infoedge has some core businesses
Apart from this, they have invested in different startups
And out of those startups one of their investments is in Zomato
They have a big investment in Zomato
So if you want to invest in Zomato, then you can directly invest in infoedge
That has invested in zomato, so you will directly or indirectly get the exposure of zomato in this share
So if I talk about the core business of Zomato then it has 4 online businesses
That runs in their core business
The main names are naukri.com
Apart from this Jeevansathi.com
99acres.com and Shiksha.com
So these four companies are its core business
But their main revenue comes from naukri.com
Because its founder first started naukri.com
And this was started when the internet had just been introduced
In India, that's when they thought that the jobseekers
Or who have to hire people for employment
There is no platform for them, where they can
The people who want employment and the people employing can interact
That is when they started naukri.com
If I talk about naukri.com, then it is one of the few online companies that runs up a profit
If I talk about its profit, then 80% of their profit
Comes from the people hiring employees
Because you know that many people upload their resumes on the website
And after that the people hiring and looking for good people to employ
They come and search their database
For which this company charges
And their main revenue comes from there
Apart from this, some revenue
Comes from job seekers, from the people who have taken premium services
Apart from this, if I talk about the remaining 3 companies
All three companies are currently operating under losses
If I tell you an interesting fact about naukri.com, then on naukri.com
There are more than 50 million resumes with them
And daily more than 17,000 resumes are uploaded there
So you would have gotten an idea about how big the database is of naukri.com
Now I will talk about zomato
How zomato's revenue had increased in the past few years
And is zomato in profit now or losses
If I talk about zomato's revenue then in 2018 their revenue
That was 64 million dollars
After this if I talk about 2019
It increased 3 times
In 2019, their revenue was more than 200 million dollars
There was a good growth here
In zomato's revenue
Now you must be thinking where Zomato's main revenue comes from
So if I talk about the main revenue of Zomato
The main revenue of zomato comes from their delivery business
whenever you order some food from their delivery app
And the delivery done, is where their main revenue comes from
Apart from this, they started another scheme called zomato gold
Which was a monetization scheme
From which they get a moderate revenue
Now after revenue comes whether this is a profit making company
Or whether it operates in losses now
If I talk about now, then zomato is in losses now
Because their revenue was increasing well
But their costs are in losses
Because there is a lot of costing in delivery business
Because of which the company's expenses increases a lot
Now I will tell you a figure that in 2018 and 2019
How the expenses of zomato were in comparison to its expenses
If we talk about cost, then the costing of zomato in 2018 was 50 million dollars
And if I compare that to 2019
The costing and expense of this company
That was 500 million dollars
So here it clearly comes out that the expenses of the company
Was more than its revenue which is why it is a loss making company
But their revenue increased by a big amount
Apart from this, it is a trusted brand of zomato
Which many people use
Because of which people have invested in this company
So now if you want to invest in zomato through a stock
That stock is infoedge
But a big chunk of their revenye doesn't come from there
You won't get direct exposure from there
But you will get an indirect exposure to zomato
If you invest in infoedge
After this I will talk about the financials of infoedge
How healthy this company is financially
If I talk about the revenye of infoedge then in the quarter of December 2019
This company registered a revenue of 335 crores
If I compare that to the same quarter of the last financial year
Then their revenue was 290 crores
There we can see a good improvement in their net revenue
But now we will talk about the operating cashflow
Which is a very important parameter for any company
So if I talk about infoedge, their operating cashflow is positive
Apart from this if I talk abot debt
There is negligible debt on infoedge
Which means the debt is very small which
You can say it is a debt free company
So I will clear again
By investing in infoedge you won't directly get exposure in zomato
Because this company has invested in zomato
Apart from that this company has 4 other core businesses and they have investments in different places
If zomato performs well
If zomato gets profits, then even this company will benefit
If this company gets profits and it increases in the coming days then
You can get a good return
But it is not necessary that only when zomato performs well
Then its share will go forward because
Its net revenue comes from different places
For that it is necessary that all segments perform well
Then this company will go forward
So you can invest in infoedge if you indirectly want to take exposure in zomato
Because apart from infoedge there isn't any publicly listed company through which you can indirectly get exposure in zomato
Now let us talk about Starbucks
Now let us come to the second part of the video
If you think that starbucks can perform well in India in the coming time
Because you thought that starbucks made good expansion in the past months
So which company will get the benefit of this
You can invest in that so that even you get the benefits
The name of this company is Tata consumer products
This is a company that operates starbucks in India
And it has a 50% joint venture with starbucks
Now you must want to know which company is tata consumer product
What are its products
And how and where does it operate
So if I talk about tata consumer products
It is an integrated food and beverages company
Which not only operates in India
But also in different countries of the worls
And it has many such brands
Which you directly use in your homes
But maybe you don't know that its parent company
Is tata consumer product
Like if I talk about one product, called tata salt
Which is the most famous salt brand of India
Which everyone uses in their homes everyday
That comes under this company
This company owns this brand
So after this if I tell you another thing about tata consumer brand
This is the world's biggest branded tea player
Because you must have heard the name Tetley brand
Which is a very big brand
That also comes under Tata consumer product
Apart from this you would have heard Tata sampan
Apart from this if you would have used Himalaya water bottles
All these brands also come under tata consumer brands
Now let us talk about this company's business from other countries
So if I tell you a figure
This company get 30% of their overall business from Indian beverages
Apart from this, 21% of their business comes from Indian foods
And 34% of their total business
Comes from international beverages
Apart from that, 10% of their revenue comes from different places
So you will get to know that a major chunk comes from India
Apart from that 34% which is a very big number
Comes from the international beverages in the world
Which is a big chunk of their overall revenue
Now let us talk about starbucks
How does Starbucks' business operate in India
The impact of which we can see on tata consumer products
so if I talk about starbucks then in the financial year 2019
Reported a net profit of 29 crores
Before that, this company was a loss making company
but here there is a very important point which you should pay attention to
In this profit there was a 75 crore exceptional tax which the company registered one time
Because of which their bottom line improved
So if I talk about the financial year 2019, this company had more than 150 outlets
And good expansion was seen in the past few years
Apart from this if we talk about the revenue, then almost a 30% increment was seen in their revenue in FY 2019
If I talk about this year's revenue, there will be an impact on this years profit and revenue of the company
Because of lockdown even their stocks were stopped
Because of which there can be a negative impact
Now let us talk about the overall financials of Tata consumer products
How this company performs financially
If I talk about the finanical of tata consumer products then the P/E of this company is more than 50
If I compare it to its competitors then it is more
So if I talk about the revenue of this company in this quarter
This company has reported a revenue of 2400 in the quarter of March 2020
If we look at their operating profit margin then that is around 13%
And this company has always kept its operating profit margin from 10-14
Which is a healthy number in this industry
After this is we talk about the net profit, then this company
Has booked a loss in this quarter, but the reason behind this loss
Is their other income where they have booked a loss of 242 crores
Which is an exceptional item
Which happens only once, it doesn't happen many times
That is why it is important to see the operating margin of the company
So if we look at the operating profit of this company, then this company has booked an operating profit of 300 crores
If I compare that number to the same quarter of March 2019
That number was 174 crores then
Their operating has almost doubled in the past year
After this if we talk about the operating cashflow, then it is a positive number which is a very good thing for the company
I would like to tell you again at the end of the video
We got this video purely for educational purposes
We do not give the recommendation of buying or selling of any company
But I will clear something again
The topic of this video was how you can invest in Zomato or Starbucks
By investing in the mentioned companies, you can get an exposure in Zomato or starbucks
But it is not necessary that if these companies perform well
Their share price will go up
As I told you that these companies have different business units
From where their overall revenue or overall profit comes
If I tell you about infoedge
It has four core businesses but it has taken exposure in zomato
If zomato performs well
Infoedge will get a benefit
But it is not necessary that their share price will always go up
There, starbucks is a business unit of tata consumer product
Where they have a 50-50 joint venture
If it performs well, then the revenue and profit of this company will increase
But it is necessary for this company to gett good revenye from other units
So that it can perform well in the coming time
So you can use this video for educational purposes
there are many companies that have invested in different places
If that investment performs well
EVen if this business doesn't get good revenue
It compensates its overall net profit
So further you also have to see that the company you are analysing
Which companies has that company invested in
Because you get an indirect exposure from there
If you liked this video, press the like button
Comment and let us know which company you think is better
infoedge or tata consumer product for investing
In the recent days
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