Zomato share price falls 6% after Q4 results. Opportunity to buy the stock?

livemint.com:

₹182.10 apiece on the BSE. The food delivery platform Zomato reported a consolidated net profit of ₹175 crore in the fourth quarter of FY24 as against a loss of ₹188 crore in the same period a year ago. The net profit grew 27% from ₹138 crore posted in the December quarter.

Zomato’s revenue from operations in Q4FY24 increased 73% to ₹3,562 crore from ₹2,056 crore, YoY. Gross order value (GOV) for the March quarter grew across B2C businesses rising to 51% YoY to ₹13,536 crore. At the operating level, the company posted an EBITDA of ₹86 crore, an improvement from the loss of ₹226 crore incurred during the same period last year.

Read here: Zomato Q4 results: Net profit at ₹175 crore versus loss of ₹188 crore YoY; 5 key highlights Zomato’s quick commerce arm Blinkit achieved operational EBITDA break-even in March 2024. Analysts maintained their bullish view on Zomato shares with some raising target price on the stock led by continued outperformance of Blinkit. Here’s what analysts said on Zomato Q4 results and Zomato share price: Zomato posted steady operational results, with revenue ahead of Emkay Global’s estimates whereas the margin miss was on account of higher than expected ESOP costs.

The brokerage firm has mostly retained FY26E earnings per share (EPS) estimates, but lowered FY25E EPS by ~20%, factoring in the slower profitability for Blinkit on the aggressive store addition plan and higher ESOP costs. It maintained a ‘Buy’ rating with Zomato share price target of ₹230 per share on SOTP basis, valuing food delivery at ₹121 per share (DCF basis), Blinkit at ₹93 per share (DCF basis), and cash & other investments at Rs17 per share (BV). Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May