@Marathondreams Completely Agree with you. Its my first post ever on this forum, though I am a regular reader and learner on this very resourceful platform. Have been benefiting a lot from in-depth and thoughtful ideas of the members who post regularly. My association with equity market as investor and learning therein forces me to ask few important question which I am sure every equity investor should ask him/her self before putting up hard earned money -
- Equity is an asset class and every asset has an intrinsic value, and as an investor your first and foremost responsibility is to get a fair idea of what is the intrinsic value of a business that you should be OK to pay based on the economic characteristics of the business.
- Based on your judgment of this value, you need to figure out the nuts and bolts of the business which will remain in place to propel its growth to the next orbit in probably min. 5-10 year timeline as one’s time horizon may permit to allow that intrinsic value + your expected return to get reflected in the price at that point in time.
- It is even more import for high PE growth companies and margin of error is so low that a hair line miscalculation may cost you huge price. E.g. just look at Dr. Lal Path Labs, Snowman logistics and so many are there.
- Regarding this IPO, ask yourself what is so special in the business model that guarantees me to pay back my price only after 50 years (PE=50+)
. BIG BAZAR, VISHAL Mega Mart and many others are bleeding to pay to their employees forget about equity investors. - Will you go to super market to buy Rs. 10000/- worth of stuffs every month getting all the pain of collecting and picking and bringing it to your house by paying 10% extra or you will select a prefixed title “monthly home items” on Amazon or Flipkart APPs drop down menu at 10% discount while enjoying inside your AC bed room eating your favorite snacks and watching Lionel Messi hitting goals after goals
. I generally believe your behavior towards luxury changes four fold if your income becomes double 
Think about it. - Regarding this IPO, What has suddenly made promoters to start thinking about exponential growth by raising money from market, however as far as I understand the market, consumer sector is getting badly hit due to no new creation of job and big job cuts in start-ups bubble bust.
- To sum up my thoughts, IPOs are best abbreviated “Its Probably Overpriced” for a long term INVESTOR, however, in euphoria you may make money because fools pay you for short term greed. Nevertheless, Its difficult to predict who gonna win and who gonna loose the game because its nothing more than a toss of coin. What is more important is that you understand that you are an investor and not a speculator.
P.S : I am not a SEBI registered Analyst but just an equity market enthusiast. The opinion expressed are personal and have no interest in this IPO
. BIG BAZAR, VISHAL Mega Mart and many others are bleeding to pay to their employees forget about equity investors.
. I generally believe your behavior towards luxury changes four fold if your income becomes double 
Think about it.