Zomato Bulk Deals VS Performance

As we enter October, let's focus on analyzing a technology stock, ZOMATO, and delve into how swiftly mutual funds' Asset Management Companies (AMCs) are generating returns for their investors. It's noteworthy that these AMCs are achieving impressive returns of approximately 10% per month. What's even more remarkable is that they are achieving these gains on a single stock within the portfolio, all within a relatively short time frame of 1-3 months.


The stock started showing significant performance during the Ramzan season, likely due to increased orders and food deliveries. Notably, bulk deals were observed around the month of August.

For instance, let's take an example on October 9, 2023:

  • Zomato's current price is approximately $104.

  • In August, on the last day of the month, Franklin Templeton invested at a price of $94.70, purchasing 52,40,100 shares, amounting to a total investment of $49,62,37,470.

Now, if we calculate the gain:

Current Price - Invested Price = $104 - $94.70 = $9.30, which translates to a 9.8% increase in price.

With a quantity of 52,40,100 shares, the returns amount to 52,40,100 x $9.30 = $4,71,60,900. In just 30 days, Franklin Templeton Mutual Fund realized a profit of approximately $4.71 million.

It's worth noting that other mutual fund companies might have achieved similar profits of $4.71 million in just one month using investors' capital.





Comments

Post a Comment

Popular posts from this blog

What is the best timeframe for holding a stock for 1 or 2 weeks

  Deciding on the best timeframe for holding a stock, such as for 1 or 2 weeks, depends on your investment goals, risk tolerance, and market conditions. Here are a few considerations:   1. **Short-Term vs. Long-Term Goals**:    - Holding stocks for 1 or 2 weeks is considered short-term trading or swing trading. If your goal is to capitalize on short-term price movements or market trends, this timeframe might be suitable.    - Long-term investing typically involves holding stocks for months or years, aiming for gradual growth and dividend income.   2. **Market Volatility and Risk**:    - Short-term trading can be more volatile and risky compared to long-term investing. Prices can fluctuate significantly over short periods, influenced by news, economic data, or market sentiment.    - Be prepared for potential losses and consider using risk management strategies like stop-loss orders to protect your investments. ...
Read more

Patterns: Triangle pattern in charts for selecting a stock

Image
The triangle pattern is a technical analysis pattern commonly found in stock charts. It is formed by converging trendlines that connect a series of higher lows (in an ascending triangle) or lower highs (in a descending triangle). Here’s a breakdown of the two main types of triangle patterns:   1. Ascending Triangle:    - Structure: An ascending triangle forms when there is a horizontal resistance line (upper trendline) and an ascending support line (lower trendline).    - Characteristics: Price makes higher lows (indicating buying pressure) but struggles to break through a specific price level (resistance).    - Implication: It suggests that buyers are becoming more aggressive, and if the price breaks above the resistance level, it could signal a bullish continuation.   2. Descending Triangle:    - Structure: A descending triangle forms when there is a horizontal support line (lower trendline) and a descending resista...
Read more

What is smart money and dumb money in the stock market

  In the context of the stock market, "smart money" and "dumb money" are terms used to describe different types of investors based on their behavior and strategies:   1. **Smart Money**:    - **Institutional Investors**: These include large investment firms, mutual funds, pension funds, and other institutional entities with significant financial resources and professional expertise.    - **Sophisticated Investors**: Experienced individuals who often conduct thorough research, use advanced trading strategies, and have a deep understanding of market dynamics.      Characteristics of smart money:    - Typically well-informed about the markets and individual stocks.    - Often have access to extensive research and analysis.    - Tend to make well-thought-out investment decisions based on fundamental analysis and long-term outlooks.    - Their actions can sometimes signal trends or major ...
Read more