Buy Zomato, target price Rs 230: Emkay Global Financial Services
Zomato with a target price of Rs 230. The current market price of Zomato is Rs 186.5.
Zomato, incorporated in the year 2010 (having a market cap of Rs 170978.71 crore) operates in Services sector.
Zomato key Products/Revenue Segments include Service Revenue, Other Operating Revenue, Royalty Income and Traded Goods for the year ending 31-Mar-2023.
Financials For the quarter ended 31-03-2024, the company has reported a Consolidated Total Income of Rs 3797.00 crore, up 8.27% from last quarter Total Income of Rs 3507.00 crore and up 70.54% from last year same quarter Total Income of Rs 2226.50 crore. Company has reported net profit after tax of Rs 175.00 crore in latest quarter.
The company?s top management includes Mr.Kaushik Dutta, Mr.Deepinder Goyal, Mr.Sanjeev Bikhchandani, Ms.Aparna Popat Ved, Ms.Gunjan Tilak Raj Soni, Ms.Namita Gupta, Ms.Sutapa Banerjee. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2024, the company has a total of 882 crore shares outstanding.
Investment Rationale
Zomato posted steady operational results, with revenue ahead of our estimates whereas the margin miss was on account of higher than expected ESOP costs (for the Blinkit leadership team). Food delivery GOV grew 28.5% YoY to Rs 84.4bn (-0.6% QoQ), with Blinkit GOV up 13.7% QoQ/96.8% YoY to Rs 40.3bn. Blinkit achieved operational EBITDA break-even in Mar-2024. Management guided to Blinkit remaining closer to break-even levels at adjusted EBITDA for the next few quarters, considering the aggressive store expansion
