Time period given by analyst is one year when Zomato Ltd. price can reach defined target. Zomato Ltd., incorporated in the year 2010, is a Small Cap company (having a market cap of Rs 102771.85 Crore) operating in Services sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 916.60 Crore, up 22.08 % from last quarter Total Income of Rs 750.80 Crore and up 223.32 % from last year same quarter Total Income of Rs 283.50 Crore. Company reported net profit after tax of Rs -360.70 Crore in latest quarter.
Investment Rationale
On the back of strong demand tailwinds covered at depth in food-tech thematic – (link), the brokerage expects 46% / 33% revenue CAGR over next 5 / 10 years. Unlock should not have a noticeable decelerating effect like in case of global tech (e.g. Amazon, DoorDash). As growth / PAT margins are yet to reach steady state, PEG is better v/s P/E for relative comparisons. At 0.5x FY24E PEG, Zomato is way cheaper v/s median food services (1.9x), technology (1.8x) or consumer (2.9x) stocks. It values it at 55x 2-year forward P/E, in-line with median consumer discretionary multiple. Upside risk to estimates and target multiple is likely as discounts turn out to be lower v/s our base case and company scales up in attractive adjacencies.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of June 30, 2021, while FIIs held 9 per cent, DIIs 3.8 per cent and public and others 87.2 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
