Established in 2010, Zomato Limited stands as a pioneering force in the realm of online food service platforms, boasting a substantial market share in terms of the value of food sold. The company offers a comprehensive suite of services encompassing food delivery, dining-out experiences, loyalty programs, and more, catering to the diverse culinary preferences of consumers. With a portfolio of brands including Zomato, Hyperpure, blinkit, and Feeding India, Zomato has become synonymous with convenience and choice in the food industry.
In India, where gastronomy is deeply ingrained in the cultural fabric, Zomato’s presence signifies the evolving consumer landscape and the growing reliance on digital platforms for culinary indulgence. As Zomato sets its sights on ambitious goals, including achieving a price target of 10k, its ability to navigate these complexities will be closely watched and evaluated.
About Zomato
Founded in 2010, Zomato Limited has emerged as a frontrunner in the realm of online food service platforms, revolutionizing the way people experience culinary delights. With a diverse array of offerings including food delivery, dining-out services, loyalty programs, and more, Zomato has cemented its position as a go-to destination for food enthusiasts worldwide.
As of December 31, 2020, Zomato boasted a formidable presence across 23 countries, with a robust network comprising 131,233 active food delivery restaurants and 161,637 delivery partners. This expansive reach is complemented by an average monthly food order volume of 10.7 million, underscoring the platform’s popularity and influence in the global food landscape.
Key to Zomato’s success is its innovative approach to food services, epitomized by its diverse portfolio of brands including Zomato, Hyperpure, blinkit, and Feeding India. Leveraging cutting-edge technology and a customer-centric ethos, Zomato continuously strives to enhance user experience and cater to evolving consumer preferences.
Moreover, Zomato’s commitment to excellence is evident across its business segments, from food delivery and dining-out experiences to its Hyperpure farm-to-fork supplies offering. The company’s relentless pursuit of quality and efficiency has garnered widespread acclaim, positioning it as a leader in the food service industry.
Despite facing challenges such as international market exits and regulatory issues, Zomato remains steadfast in its mission to redefine the food ecosystem through innovation and customer-centricity.
Recent News Around Zomato
- Zomato has achieved a significant milestone by becoming almost debt-free, indicating a healthy financial position and reduced financial risk.
- Analysts anticipate that Zomato is poised to deliver a good quarter, reflecting positive business performance and operational efficiency.
- The stock is currently trading at 6.83 times its book value, suggesting investor confidence in the company’s growth prospects and future earnings potential.
- Despite being almost debt-free, Zomato has a low interest coverage ratio, indicating a potential vulnerability to meet interest payments on outstanding debt obligations.
- Zomato has reported a low return on equity of -9.31% over the last 3 years, signaling a need for improvement in generating profits relative to shareholders’ equity.
- Zomato’s earnings include a significant amount of other income, amounting to Rs. 783 crore, which might have influenced the company’s financial performance.
- Analysts expect Zomato’s adjusted revenue to grow by 40% or more year-on-year, indicating strong underlying business fundamentals and market demand.
- There is an optimistic outlook for Zomato’s adjusted revenue growth, with expectations of it surpassing 50% over the next few quarters.
Zomato Q2 Fy2024 Key Points And Summary:
- Zomato experienced continued growth momentum in Q2 FY24, with healthy performance across all its business segments. Gross Order Value (GOV) across its B2C businesses, including food delivery, quick commerce, and going-out, grew by 13% quarter-on-quarter (QoQ) and 47% year-on-year (YoY).
- Food delivery GOV grew by 9% QoQ and 20% YoY, showing strong recovery from the demand slowdown observed in the last two quarters of FY23.
- Quick commerce segment bounced back with a 29% QoQ GOV growth following tepid growth in Q1FY24, attributed to temporary disruptions in the business.
- Adjusted revenue grew by 16% QoQ and 53% YoY. Zomato remains on track to deliver a compounded growth rate of 40%+ over the next couple of years, with YoY growth comfortably exceeding 40% for the past 8 quarters.
- Zomato posted its second consecutive profitable quarter, with Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reaching INR 41 crore.
Zomato Q2 Share Price Target 2024 To 2030
Zomato Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹171.79 | ₹149.38 |
| February 2024 | ₹175.30 | ₹152.43 |
| March 2024 | ₹178.87 | ₹155.54 |
| April 2024 | ₹173.66 | ₹151.01 |
| May 2024 | ₹171.10 | ₹148.78 |
| June 2024 | ₹177.26 | ₹154.14 |
| July 2024 | ₹175.48 | ₹152.59 |
| August 2024 | ₹182.50 | ₹158.70 |
| September 2024 | ₹189.80 | ₹165.05 |
| October 2024 | ₹186.08 | ₹161.81 |
| November 2024 | ₹191.66 | ₹166.66 |
| December 2024 | ₹196.46 | ₹170.83 |
In 2024, Zomato’s share prices are anticipated to show a steady upward trend. The maximum price is expected to climb, reaching ₹196.46 by December, while the minimum is projected to rise to ₹170.83. Throughout the year, the expected price will only ascend, supported by optimistic market sentiment and the company’s strategic initiatives. Investors can anticipate the maximum price to gradually increase, peaking at ₹196.46 in December. Similarly, the minimum price is forecasted to climb steadily, reaching ₹170.83 by the end of the year. This consistent growth reflects confidence in Zomato’s performance and future prospects
Zomato Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹200.38 | ₹154.14 |
| February 2025 | ₹205.52 | ₹158.09 |
| March 2025 | ₹213.54 | ₹164.26 |
| April 2025 | ₹209.35 | ₹161.04 |
| May 2025 | ₹203.25 | ₹156.35 |
| June 2025 | ₹212.40 | ₹163.38 |
| July 2025 | ₹208.24 | ₹160.18 |
| August 2025 | ₹214.68 | ₹165.14 |
| September 2025 | ₹222.19 | ₹170.91 |
| October 2025 | ₹227.97 | ₹175.36 |
| November 2025 | ₹233.67 | ₹179.74 |
| December 2025 | ₹239.51 | ₹184.24 |
In 2025, Zomato’s share price is expected to continue its upward trajectory, reflecting sustained investor confidence and the company’s growth prospects. The maximum price is projected to rise steadily, reaching ₹239.51 by December, while the minimum price is anticipated to increase to ₹184.24. Throughout the year, the expected price will only show upward momentum, with each month’s maximum and minimum prices surpassing the previous ones. Investors can expect the maximum price to climb steadily, peaking at ₹239.51 in December. Similarly, the minimum price is forecasted to rise steadily, reaching ₹184.24 by the end of the year. This consistent growth underscores the positive outlook for Zomato and its market performance in 2025.
Zomato Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹251.48 | ₹176.04 |
| 2027 | ₹276.63 | ₹193.64 |
| 2028 | ₹387.28 | ₹193.64 |
| 2029 | ₹335.31 | ₹167.65 |
| 2030 | ₹435.90 | ₹305.13 |
In the coming years from 2026 to 2030, Zomato’s share price is poised for substantial growth, reflecting the company’s expanding market presence and promising outlook. The maximum price is expected to rise progressively, reaching ₹435.90 by 2030, indicating significant potential gains for investors. Meanwhile, the minimum price is also projected to increase steadily, with a value of ₹305.13 anticipated by 2030.
Zomato’s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 1,313 | 2,605 | 1,994 | 4,192 | 7,079 | 10,608 |
| Expenses + | 3,556 | 4,909 | 2,461 | 6,043 | 8,290 | 10,878 |
| Operating Profit | -2,243 | -2,305 | -467 | -1,851 | -1,211 | -270 |
| OPM % | -171% | -88% | -23% | -44% | -17% | -3% |
| Other Income + | 1,285 | 16 | -200 | 793 | 682 | 783 |
| Interest | 9 | 13 | 10 | 12 | 49 | 67 |
| Depreciation | 43 | 84 | 138 | 150 | 437 | 520 |
| Profit before tax | -1,010 | -2,386 | -815 | -1,220 | -1,015 | -74 |
| Tax % | 0% | 0% | 0% | 0% | 4% | |
| Net Profit + | -1,010 | -2,386 | -816 | -1,222 | -971 | -12 |
| EPS in Rs | -28,574.18 | -70,096.54 | -23,123.76 | -1.54 | -1.14 | -0.02 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
Over the past five years, Zomato has undergone significant fluctuations in its financial performance. While sales have exhibited substantial growth, rising from ₹1,313 crores in March 2019 to ₹10,608 crores in the trailing twelve months (TTM), expenses have also increased, reflecting the company’s efforts to expand and enhance its operations. However, the operating profit margin (OPM %) has been consistently negative, indicating challenges in managing costs effectively relative to revenue generation.
Despite fluctuations, Zomato has shown resilience, with other income contributing positively to its financials, particularly in recent years. Additionally, the company has managed to reduce its net losses over time, albeit remaining negative. The decline in net profit from a loss of ₹2,386 crores in March 2020 to ₹12 crores in the TTM suggests efforts towards financial stabilization. Zomato’s dividend payout has remained at 0%, reflecting a focus on reinvesting earnings for growth rather than distributing profits to shareholders.
FAQS
What are the key brands associated with Zomato?
Zomato, Hyperpure, blinkit, Feeding India.
What is the current market capitalization of Zomato Ltd?
₹ 1,38,206 Crores.
What is the current stock price of Zomato Ltd?
₹ 157.
What is the high/low range of Zomato’s stock price?
High: ₹ 160, Low: ₹ 49.0.
What is the book value per share of Zomato?
₹ 22.9.
What is the dividend yield of Zomato Ltd?
0.00 %.
What are the Return on Capital Employed (ROCE) and Return on Equity (ROE) of Zomato Ltd?
ROCE: -5.79 %, ROE: -5.91 %.
Should one invest in Zomato?
Zomato Ltd, incorporated in 2010, is a prominent online food service platform, known for its diverse offerings including food delivery, dining-out services, loyalty programs, and more. As of February 16, 2024, the company’s stock price stands at ₹157. Let’s delve deeper into its financials and other key metrics to evaluate its investment potential.
Over the past five years, Zomato has demonstrated significant growth in its sales, with a Compound Annual Growth Rate (CAGR) of 70% in the trailing twelve months (TTM). Despite this robust revenue growth, the company has struggled to maintain profitability, with negative earnings per share (EPS) in recent years. The company’s profitability has been impacted by high expenses relative to its revenue, resulting in negative operating profit margins (OPM) and low return on equity (ROE). However, it’s important to note the company’s improving sales figures, indicating strong demand for its services.
Zomato’s stock price has experienced considerable volatility, with a significant increase in its price over the past year, indicating positive investor sentiment and market optimism. However, the stock is currently trading at a relatively high price-to-book (P/B) ratio of 6.83, suggesting that it may be overvalued compared to its intrinsic value.
The company’s debt-free status is a positive aspect, indicating a healthy balance sheet. However, its low-interest coverage ratio raises concerns about its ability to meet its interest obligations. Additionally, Zomato’s negative ROE over the last three years highlights its challenges in generating sustainable returns for its shareholders.
Investing in Zomato warrants careful consideration of its financial performance, market dynamics, and future growth prospects. Furthermore, keeping track of industry trends, competitive landscape, and regulatory developments is crucial for making informed investment decisions regarding Zomato.
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