Ltd 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 ( 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 ( 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.


Looks interesting. Low barrier to entry but very difficult to create a leadership position. Once there, difficult to dislodge because of network effects. While in absolute terms, in the vs, shaadi seems to be leading in terms of page views but when you add the traffic of regional websites of BM such or, BM has higher page views. The market is likely to be disrupted by the “hinge’s” and “tinders” of the world.