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HomeMarket NewsZomato share price may fall to ₹130, says Macquarie flagging potential downside risks
Out of the 27 analysts that have coverage on Zomato, 24 of them have a "buy" rating on the stock, while three have a "sell" recommendation.
By Hormaz Fatakia November 13, 2024, 9:16:33 AM IST (Published)
Brokerage firm Macquarie has maintained its "underperform" recommendation on food delivery aggregator Zomato Ltd. with a price target of ₹130.
The price target from Macquarie implies a potential downside of nearly 50% from Tuesday's closing levels.
Macquarie wrote in its note that it is time to revisit the fundamental building blocks of growth and unit economics for Blinkit and Zomato Food Delivery.
The brokerage M
Zomato's current estimates are pricing in its Gross Order Value for the Food Delivery and Quick Commerce business to grow at a Compounded Annual Growth Rate (CAGR) between 18% and 35% over a 10-year period, according to Macquarie.
The estimates are also currently pricing in fully optimised margins and benign competition.
Zomato reported a net profit of ₹176 crore for the July-September period. The figure though was lower compared to Jefferies' estimates of ₹245.3 crore. The company had reported a net profit of ₹36 crore during the base quarter.
Revenue on an adjusted basis for the quarter also increased by 69% from the same quarter last year to ₹4,799 crore. Analysts at Jefferies were projecting the revenue figure of ₹5,042.7 crore.
Out of the 27 analysts that have coverage on Zomato, 24 of them have a "buy" rating on the stock, while three have a "sell" recommendation.
Shares of Zomato have corrected 13% so far from its recent record high of ₹298. Yet, the stock is up 107% on a year-to-date basis.
