Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Has Walmart Made a Big Mistake Acquiring Flipkart?
May 11, 2018


Shocking, isn't it?

The valuation of Flipkart is equal to the combined valuation of India's largest retail companies.

And Flipkart has never made any profits. It reported an operating loss of Rs 45.8 billion in FY17 and is expected to report an operating loss of Rs 91.1 billion in FY20.

If Flipkart would have been a listed company, it would have never passed through the Smart Money Score. A company with no operating profits and just a hope of future profitably should be valued very strictly.

I believe, the valuation at which Walmart is acquiring Flipkart is insane.

With no operating profits and a strong competitor like Amazon, Walmart's shareholders are expecting a rough experience.

In fact, post the announcement of the deal, Walmart's share price declined by around 3%, which is around half of its Flipkart investment on day one itself.

Data Source: BSE, Walmart Press Release

This Chart Of The Day was published in The 5 Minute WrapUp - This Managing Director Failed to Change. He's Trapped and Not Even Aware of It!

Equitymaster requests your view! Post a comment on "Has Walmart Made a Big Mistake Acquiring Flipkart?". Click here!

  

Our Most Popular Charts

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS