Zomato growth sees a 29% upside
After Jefferies maintained a “buy” rating on Zomato and set a base case target of Rs 335, suggesting a potential upside of 29% from Friday’s closing, the company was trading modestly higher on Monday.
Zomato is a parody of the expanding digital commerce market and the Indian food services sector. Zomato, which already has just about 20 million monthly active users, has a large window of opportunity for revenue development and client acquisition, according to the brokerage.
In the rapidly expanding quick-commerce industry, Blinkit leads the market and is expected to achieve significant margin growth in the steady state, the statement continued.
According to Jefferies’ base scenario, delivery revenue will grow at a compound annual growth rate (CAGR) of almost 20% between FY24 and FY27. The brokerage anticipates a steady improvement in unit economics as Zomato expands its operations due to cost savings and a rise in customer willingness to pay for convenience.
“We value Zomato’s going-out business at 2.5 times its gross order value (GOV), quick commerce at 12 times its two-year forward sales, and the delivery segment at 55 times its adjusted EBITDA,” the statement stated.
Kazuchika Okada Overcomes PAC 2024 to Start the First-Ever AEW Dynasty with a Victorious Continental Title Win.
Link : https://newsshortr.com/kazuchika-okada-overcomes-pac/
In his maiden title defence at Dynasty, Kazuchika Okada—the newest member of The Elite—retained the AEW Continental Championship, but not before suffering a defeat at the hands of challenger PAC. Throughout the fight, the “Bastard” came dangerously close to having the “Rainmaker’s” number several times. Don’t miss:- ‘Fortnite’ fans want a Taylor Swift collab following the release of ‘The Tortured Poets Department’ in 2024
Jeffreys has set a target price of Rs 360 in its bullish case, which implies an upside of around 40% based on its projection of a 25 percent compound annual growth rate in delivery revenue from FY24-27E. Conversely, in the event of a decline, the brokerage has set a target price of Rs 200.
Several factors that are probably going to move the stock in the near future were listed by Jefferies. A good macroeconomic climate, an increase in discretionary spending, the quick uptake of digital commerce, and better-than-expected developments in average order values (AOVs) and unit economics are examples of positive influences. Growth may also be accelerated by a profitable entry into the supermarket market.
On the other hand, there could be drawbacks such as heightened rivalry from recently entered markets, slower-than-expected market expansion, and unfavorable regulatory adjustments that impact platform companies.
On the National Stock Exchange, Zomato shares were mostly trading unchanged at Rs 259.85 (NSE). The stock has increased by 108% so far this year, outpacing the 16% return on the Nifty. The stock has increased by over 150% in the last year, more than doubling the money of investors, while the Nifty increased by 28% in the same time frame.
