The Weekly Stack 31st December to 6th January

07 Jan, 20233 mins read
The Weekly Stack 31st December to 6th January

Let’s kick off this new year by diving into these 3 headlines!

🧴 Mamaeath’s PE ratio of 1714 is ridiculed by netizens

🤝 India-France to join hands in fighter and submarine manufacturing

🧳 Japan is paying families 1 million Yen per child to move out of Tokyo

Read Time: 2 min 45 sec

1. Mamaearth’s IPO

Mamaearth’s IPO
Mamaearth’s IPO

Mamaearth off to a rocky start

Sky-high valuation, exorbitant advertising spending, and inconsistent profit have caught the attention of netizens. Mamaearth’s ‘Return on Ad Spend’ is quite low, indicating low repeat customers.

All this raises more questions with regard to the Price to earning ratio of 1714, which is twice that of Nykaa.

Rise and fall of new age tech stocks

Nykaa gave good returns initially but the company’s profits stagnated after that. New-age tech stocks including Nykaa, Paytm and Zomato have all declined more than 50 per cent since listing.

The fed rate hikes and larger weaknesses in the global markets seem to contribute to this. Investors' pessimism about the US economy has pulled down Indian technology companies.

Our Opinion: Some of these new age tech stocks that are falling right now may show great returns in the future. But it is not reliable to believe that all of them will rise in the future. As global markets strengthen we may see a few top gainers among new age tech companies in the coming years.

2. Modi & Macron join forces

Modi & Macron join forces
Modi & Macron join forces

Fighter Jets & submarines

The Tata group has tied up with Airbus to manufacture C295 tactical transport aircraft in Vadodara in Gujarat. This line is going to be expanded into other civilian and military aircraft manufacturing in a joint venture with France.

Ocean bed mapping & underwater drones

While progress is expected on both aircraft engines and long range submarines this year with France, the two strategic allies will also be discussing the Indo-Pacific as France is ready to help India in ocean bed mapping and underwater drones and sensors.Tweet this story

Our Opinion: India and France have strong bilateral investments and trade cooperation. France has become a major source of foreign direct investment for India, particularly with the conclusion of the $10 billion Rafale deal in 2021. It is important for India to strengthen its commitments to trade, technology, and defense with France, as the country has critical expertise in these areas and can make a significant contribution.

3. Japan pays families to leave

Japan pays families to leave
Japan pays families to leave

1 million Yen per child to move out of Tokyo

Japan is going to pay families this year to combat the rapid depopulation in the country's rural areas. Families hoping to avail of the support must live in their new homes for at least five years and one member of the household must be in work or plan to open a new business.

Japan’s labour force is declining

Fundamental reform of traditional Japanese labour market practices is essential to cope with rapid population ageing and the era of 100-year lives.

Japan’s combination of artificial intelligence and robotics may be the answer to its rapidly shrinking labor force

Japan Population Drop
Japan Population Drop

Our Opinion: Creating jobs is a key contributor towards GDP growth. The inclusion of AI and automation may replace a few jobs but create more in return. More than replacing automated jobs, AI possesses the power to transform the entry-level jobs, with possibly higher wages.

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