Please don’t make assumptions, the aspect was just to understand the stock and not play any kind of blame game etc.
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We don’t know if analysts or HNI investors or FIIs or whoever took up prices. Does that matter and should we care? The only aspect important is that was there exuberance or not - and seems there was. Thats what I meant by my point.
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All due respect for everyone in the investing ecosystem. This moreover includes people who analyse and put in a lot of effort to understand fundamentals - a lot of the information is great to consume. I wouldn’t go even as far as mentioning someone’s folly - if invested in Indiamart since 2019 - would that be a folly? Anyways - no point in debating a point which has no consequence to the business view/analysis.
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On the Indiamart point - yes the company is still richly valued and yes cost cutting has been done. My point was that they way it was done - and the fact that it was done - and profit was doubled in a drastically difficult year - was very impressive. I specifically mentioned that I was impressed with the capital allocation and the prudence. The fact that anyone can do that is pretty random as I think companies should be judged on what they do. My question was purely on if it would be prudent for Indiamart to keep investing on marketing when the entire SME ecosystem was shaken.
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Again - my view here would be I am not as sure considering past track record! If you are, great, no issues.
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That is precisely the view I was trying to question. Investors will stay away is again too generic. My premise was will earnings be affected - and I was trying to judge that. Maybe others can predict generic investor behaviour.
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Valid question! Depends on a lot of aspects including business longetivity, quality of management, earnings, growth anticipated, time horizon of the investment. I cant predict 15% growth though for sure - that much I know.
Discl : Invested