Momentum Trading Or Overvalued Bets? Deven Choksey Decodes Zomato & Swiggy’s Recent Rally

In this excerpt from the "Market Today" show on Business Today TV, Deven Choksey, MD of DR Choksey FinServ Private, shares his insights on the recent price movements in stocks like Zomato, Swiggy, and Paytm. These stocks have shown a strong recovery after a bout of profit booking, but are these levels ideal for entry, or is caution still warranted? 

Deven Choksey highlights the following points:

Valuation Concerns: Despite increased transactions and improving metrics, the combined market capitalisation of Zomato and Swiggy (~₹3.5-4 lakh crore) lacks corresponding profits, making them expensive for long-term investors. Profitability Milestones: While Zomato has begun contributing positively, Swiggy remains far from profitability. Investment Strategy: Momentum traders may find opportunities in these stocks, but for investors, the valuations are stretched, leaving limited room for substantial gains.

Tune in for a detailed discussion on whether these consumer-driven digital businesses are worth considering or if caution is the better approach.