India’s food aggregator industry, worth $4.66 billion in 2020, is projected to grow at a 12.2% CAGR from 2021 to 2027. The sector thrives on urbanization, smartphone penetration, and rising online food ordering, with millions of monthly active users.
With a market capitalization of Rs 2.38 lakh crore, the shares of Zomato Ltd were trading in green at Rs 261.75 per share, increased drastically by 18.60 percent as compared to the previous closing price of Rs 234.10 apiece.
Financial performance:-
Recently, the company announced its financial performance, revenue magnified by 74 percent from Rs 2,416 crore in Q1FY24 to Rs 4,206 crore in Q1FY25, and during the same time frame, net profit also magnified drastically by 12,550 percent from Rs 2 crore to Rs 253 crore.
Brokerage target:-
CLSA, one of the well-known brokerages globally, gave a ‘Buy’ call on the stock with a target price of Rs 350 apiece, indicating a potential upside of 33 percent from Friday’s price of Rs 261.75 per share.
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Target rational:-
As per the brokerage, in the June quarter, online food delivery giant Zomato Ltd’s results performed better than expected on many counts. The Zomato management guided for 20 percent-plus growth in the short term in the Food Delivery (FD) business and set a target to increase Blinkit’s dark store count from 639 in the June quarter to 2,000 by end-CY.
Recent launch & other brokerage coverage:-
Furthermore, on August 1, Zomato announced the launch of ‘District,’ a new app integrating the “going-out” industry, comprising dining and tickets (movies and concerts), an ambitious expansion beyond its core food delivery services and hyper commerce.
Along with CLSA, Motilal Oswal has set a target price of Rs 300 per share for Zomato. It stated in its note that Blinkit is providing a generational chance to engage in the transformation of industries such as retail, groceries, and e-commerce.
Company profile:-
Zomato Limited serves as an internet gateway that connects users, restaurants, and delivery partners. The Company provides a platform for restaurant partners to advertise to their target audience in India and overseas, as well as provide ingredients.
Written by:- Abhishek Singh
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