Matrimony.com Ltd
Market Cap: 1600 Odd Crores.
CMP: Around 730
Current P/E: Around 21against FY18 EPS.
POSITIVE: B2C business, Recession Proof, Under tapped market, Political Risk Proof.
NEGATIVE: No entry barriers, Competition
MCL is currently the market leader in online match making services in India with a market share of north to 60%.
About 1-1.2 crores wedding take place in India annually and only 6% of the population go online to find a match. With changing dynamics the online matrimony option is bound to find a more influential place in our match-making system.
Valuations: The stock is available at 21x its earnings on the P/E front against FY18 and at 4.88 Mcap/Sales. The company has no listed peer except Info-Edge (Naukri.com) which is trading at valuations of 56x to its earnings and at a Mcap/Sales of 15.77. (However Info-edge has various portals across industries from job market (Naukri.com) to 99acres in property it also has a 10% stake in Zomato). Another peer Justdial which has been punished heavily by the markets in last 3-4 years due to deteriorating margins, topping out of growth and google’s venture into locals rendering Justdial with little utility left still trades at a valuation of 27x to its earnings.
Internet businesses in general are rated at far higher valuations, such as INFIBEAM today is trading at a P/E of more than 100 and Mcap/Sales of about 13+.
Astronomical valuation for Internet companies is a global trend.
Credits: for above pointers to The ace investor blog.