India’s online services sector is quickly developing, with more than 900 million internet users by 2023. The e-commerce market is expected to reach ₹7.5 trillion (about $90 billion) by 2025. This expansion is supported by increased mobile access and government efforts such as Digital India, which improve digital infrastructure across the country.
With a market capitalization of Rs 2.27 lakh crore, the shares of Zomato Ltd were trading at Rs 255.80 per share, increasing around 0.29 percent as compared to the previous closing price of Rs 254.90 apiece.
Brokerage Recommendation:-
JP Morgan, one of the well-known brokerages globally, gave a ‘Buy’ call on the stock with a target price of Rs 340 apiece, indicating a potential upside of 33 percent from Friday’s price of Rs 255.65 per share.
Rational & other brokerage views:-
According to the brokerage, the scalability of Blinkit contributes to increased income through channel margins and ad spending. Furthermore, the new shop economics will aid the firm in increasing its EBITDA. After establishing the model’s efficacy in NCR, the company is now extending Blinkit throughout all major cities.
JP Morgan also expected that Blinkit would drive the disruption of modern trade and e-commerce. CLSA, an international brokerage, also stated that Zomato was its best chance amid quickly changing customer tastes.
Financial performance:-
Examine the company’s financial condition, revenue zoomed 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 magnified drastically by 12,550 percent from Rs 2 crore to Rs 253 crore.
International presence:-
The company has an international presence in 23 countries, including the UAE, Australia, New Zealand, the Philippines, Indonesia, Malaysia, the USA, Lebanon, Turkey, the Czech Republic, Slovakia, and Poland.
Zomato Limited serves as an Internet site that connects users, restaurant partners, and delivery partners. The Company also provides a platform for restaurant partners to market themselves to their target audiences in India and overseas, as well as supply ingredients to restaurant partners.
Written by:- Abhishek Singh
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