Zomato share price jumped 1.04% to Rs 65.21 today after the food delivery company’s net loss narrowed to Rs 187.60 crore in Q4FY23 from Rs 359.70 crore in the same quarter last year. Zomato shares have risen 16% in the past one month and 12% in the past one year. At the current market price, the company’s market capitalisation stands at Rs 55,944 crore. The company posted revenue from operations at Rs 2,056 crore, up 69.7% from Rs 1211.80 crore in the fourth quarter last year
Should you buy, sell or hold Zomato stock?
Emkay: Buy – Target Price: Rs 90 (38% upside)
“Zomato aims to expand food-delivery EBITDAM to 4-5% of the GOV from the current 1.2%. The superior Q4 performance bolsters our belief in Zomato’s ability to execute & deliver profitable growth. Improvement in consumer sentiment is expected to drive GOV/MTU growth. We maintain BUY on Zomato with a target price of Rs 90 per share,” said analysts at Emkay.
Motilal Oswal: Buy – Target Price: Rs 80 (22% upside)
“Zomato has made three senior promotions to CEO/COO roles that moderate our concerns on high attrition at the senior leadership level. We value the business using DCF methodology, assuming a 4% terminal growth rate and 12.5% cost of capital. We maintain our BUY rating with a target of Rs 80,” said analysts at Motilal Oswal.
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ITC: Strong growth; 15% CAGR forecast for the next two years
JM Financial: Buy – Fair Value: Rs 105 (61% upside)
“We continue to remain bullish on Zomato’s long-term growth prospects in the hyperlocal delivery space. We continue to value the consolidated business using a 15-year DCF (WACC of 13% and Tg of 6%) to arrive at a Jun’24 FV for Zomato of Rs 105 (vs. INR 100 earlier). Implied FY26 PER on our target price works out to ~63x while the stock currently trades at c.39x,” said analysts at JM Financial.
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