OZON - Ozon Holdings: A Gem Of The Russian E-Commerce Industry

• Ozon Holdings is an e-commerce platform operating in Russia that offers the broadest multi-category product selections.
• The company is scaling up very fast and, in Q4, posted over 140% y/y growth in GMV (from 127% in Q3).
• Russia has one of the lowest e-commerce penetrations around 6% in line with LatAm) but it relies on an 83% internet penetration with 113 mln users (first in Europe).
• Ozon has recently launched a loan and a credit service dedicated to its marketplace participants (Ozon platform and Ozon.Card) in the effort to support further users' adoption of its services and high order frequency.
• The valuation seems compelling as the stock is trading at 3.6x Ev/Sales 2022e. We estimate an equity value in the region of $15,6bn, which delivers $75.2 per share with a potential upside of around 34.

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