The target price for the delivery platform has been raised to Rs 320 per share from Rs 260 earlier, driven by the company's strong first-quarter performance and optimistic guidance.
The brokerage said the company's June quarter results exceeded expectations, driven by stronger-than-anticipated GMV growth in quick commerce, which posted a solid 27% increase in food delivery. Both quick commerce and food delivery growth outperformed estimates, with margin expansion in both segments also surpassing expectations. For FY26'28, the brokerage lifted GMV estimates by 20'30% for quick commerce and 2-3% for food delivery. The company is currently trading at 35x FY27 EV/EBITDA, compared to the 30x average for its Indian consumer/retail peers, reflecting its superior growth and margin expansion profile, it added.
Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.
The food delivery company's consolidated net profit spurted to Rs 253 crore during the quarter compared with Rs 2 crore posted in corresponding quarter last year. Revenue from operations jumped 74.09% YoY to Rs 4,206 crore in Q1 FY25. Adjusted EBITDA surged to Rs 299 crore in Q1 FY25 as compared with Rs 12 crore posted in same quarter last year. EBITDA margin stood at 3.4% in Q1 FY25.
0 mins read . Dec 18, 2024
0 mins read . Dec 18, 2024
0 mins read . Dec 18, 2024
