US market recovery to boost Indian tech stocks: Manish Sonthalia

economictimes.indiatimes.com:

«Size of the opportunity is very good. In retail, and this be true for any form of retail, you got to get your unit economics right. And if you get your unit economics right, that is to say per unit order or per unit quick commerce transaction, more than cost of capital, then the sky is the limit for you and I think Zomato has the first mover advantage, they have got the unit economics right, they have broken even, they are making contribution margin which are positive and now it is only about expansion into tier I, getting economies of scale,» says Manish Sonthalia, Emkay Investment Managers.

And while we are talking about the entire consumer space, one name that I am seeing in a portfolio of yours as a top holding is Zomato. Not really surprised to see Zomato, but also not expecting to not see Swiggy make it to this list. What is making Zomato much more attractive than Swiggy because Swiggy has also been innovating if not at a higher pace, then largely at the same pace that which Zomato has. They have also had a couple of recent rollouts. The stock seems to be doing well over the last one month and ever since it is listing we have very bullish brokerage notes coming in for Swiggy as well. What is making Zomato more attractive than Swiggy to hold in your portfolio right now?
Manish Sonthalia: So, not specifically commenting on Swiggy because regulation prohibit us from commenting about stocks that are not a part of our portfolio, but I would look at the entire space like this, that the TAM, the size of the opportunity is humongous.

There is room for everybody.