Zomato’s shares surged 6% on Monday, reaching a new 52-week high of Rs 280 on the BSE. This was following UBS, a global brokerage company, raising its target price on the new-age stock from Rs 260 to Rs 320.
“We increase our GMV estimates for food delivery (+2-3%) and quick commerce (+20-30%) for FY26-28e following the strong Q1 and solid guidance. Our adjusted EBITDA estimates for the next 1-2 years are up only slightly as investments in building supply for quick commerce will likely result in a more modest margin trajectory,” UBS said in a note while maintaining a buy call.
The brokerage said it has also increased employee cost estimates to reflect investments in manpower. “These changes, coupled with a rollforward of our valuations and higher multiples for Going Out and Hyperpure, lead to a higher PT of Rs320. Zomato is trading at FY27e EV/EBITDA of 35x, vs the AVG of Indian consumer / retail peers at 30x, with a superior growth and margin expansion profile,” it said.
On Zomato, CLSA has the highest target price at Rs 350. Bernstein wants to see Rs 275, Nomura wants to see Rs 280, and Motilal wants to see Rs 300. Zomato revealed a multi-fold increase in Q1 earnings in the June quarter, going from Rs 2 crore in the same quarter of the previous year to Rs 253 crore. Operating revenue reached Rs 4,206 crore during the reporting period, a 74% YoY increase. Zomato’s market valuation is currently approaching Rs 2.5 lakh crore, having more than doubled in value thus far in 2024.
On Zomato, CLSA has the highest target price at Rs 350. Bernstein wants to see Rs 275, Nomura wants to see Rs 280, and Motilal wants to see Rs 300. Zomato revealed a multi-fold increase in Q1 earnings in the June quarter, going from Rs 2 crore in the same quarter of the previous year to Rs 253 crore. Operating revenue reached Rs 4,206 crore during the reporting period, a 74% YoY increase. Zomato’s market valuation is currently approaching Rs 2.5 lakh crore, having more than doubled in value thus far in 2024.
