Expect bigger delta for Zomato versus QSR stocks in IPL, T20 season: Karan Taurani

economictimes.indiatimes.com:

Karan Taurani, Senior VP, Elara Securities, says “the T20 World Cup is in the month of June and we have IPL as well. So, on a QoQ basis, we will see that delta for Zomato. As far as QSR companies are concerned, there is not much of a big respite because the market is getting fragmented, the QSR companies are seeing pressure in terms of growth and in terms of delivery contribution, only 30-40% percent of their revenues comes from delivery. I think it is a bigger delta for Zomato versus the other QSR companies.”

Given that it is increasing every year, what is the valuation story you see for IPL? Where do we see it headed because it has become so expensive now?
Karan Taurani: I think valuations depend on revenue potential and revenue potential has multiplied for the franchise teams. Plus, the number of teams has also gone up. We had about eight teams, now we have ten. The number of matches has gone up by 20%. I am saying the reasons for valuations growing are these reasons as well.

Unlock Leadership Excellence with a Range of CXO Courses

The bigger reason here is the media rights. What happened last year when the media rights auction came for renewal, the growth was about 2.5 to 3 times. So, on a per match basis, the cost of the media rights went up almost two times as compared to the earlier cycle and this big surge was led