'Zerodha's valuation is way higher than reality': CEO Nithin Kamath on slow growth in FY23

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₹2900 crore from ₹2094 crore in the fiscal before. The revenue of the company grew by 35.5% to ₹6875 crore in FY23 from ₹4694 crore during the fiscal year 2022. A day after the financial results came out, Zerodha founder and CEO Nithin Kamath shared a long post on X on how Zerodha's valuation is higher than calculated.

“Every time our financials are out, there is a lot of speculation about @zerodhaonline's valuation. It might sound counterintuitive for me to say it, but most assumptions, I think, are way higher than reality," Nithin Kamath said in the post. Also Read: Zerodha's FY23 profit growth slows, but remains bullish on F&Os He mentioned that focusing on the ever-changing valuations is a distraction and the main focus of Zerodha's core team was to build a resilient business.

“All of us on the core team have never thought of notional valuations right from the start because they can go up and down with market conditions. Focussing on ever-changing valuations is a distraction. The focus has always been on building a resilient business, which means never having to rely on external capital," he added.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! “The quantum of profits is the luck of the draw and is based on market conditions. Stockbroking and capital market businesses are cyclical and high-risk.

Almost every bull run in the markets creates the illusion that somehow participation and activity will keep going up forever. We keep discussing internally that we could see a 50% dip in activity and revenue if markets fall in no time. None of it is really under our control.