Zomato Share Price: In comparison to a loss of ₹188 crore during the same period last year, Zomato recorded a consolidated net profit of ₹175 crore in the fourth quarter of FY24. From the ₹138 crore reported in the December quarter, the net profit increased by 27%.
After the company released its Q4 earnings on Tuesday, the price of Zomato’s stock dropped by 6% in early trading. On the BSE, Zomato shares dropped as much as 5.98% to ₹182.10 a share.
In contrast to a loss of ₹188 crore during the same period last year, the food delivery platform Zomato recorded a consolidated net profit of ₹175 crore in the fourth quarter of FY24. From the ₹138 crore reported in the December quarter, the net profit increased by 27%.
Zomato’s operating revenue in Q4FY24 climbed by 73% YoY to ₹3,562 crore from ₹2,056 crore. Across B2C enterprises, gross order value (GOV) increased in the March quarter, reaching ₹13,536 crore, or 51% YoY.
The company reported an operational EBITDA of ₹86 crore, which is an improvement from the ₹226 crore loss it had in the same time the previous year.
Zomato’s quick commerce arm Blinkit achieved operational EBITDA break-even in March 2024.
Analysts maintained their bullish view on Zomato shares with some raising target price on the stock led by continued outperformance of Blinkit.
Here’s what analysts said on Zomato Q4 results and Zomato share price:
Zomato posted steady operational results, with revenue ahead of Emkay Global’s estimates whereas the margin miss was on account of higher than expected ESOP costs.
The brokerage firm has mostly retained FY26E earnings per share (EPS) estimates, but lowered FY25E EPS by ~20%, factoring in the slower profitability for Blinkit on the aggressive store addition plan and higher ESOP costs.
It maintained a ‘Buy’ rating with Zomato share price target of ₹230 per share on SOTP basis, valuing food delivery at ₹121 per share (DCF basis), Blinkit at ₹93 per share (DCF basis), and cash & other investments at Rs17 per share (BV).
Institutional Equities Nuvama
Blinkit plans to raise dark store count from 525 in Q4FY24 to 1000 by end of FY25. While this shall impact short-term profitability, this shall cement Blinkit as the clear leader in quick commerce, Nuvama Institutional Equities said.
It values Zomato using SOTP, valuing food delivery at $10 billion and Blinkit at $13 billion. The upgrade was due to the increase in value of Blinkit due to faster-than-expected growth and clear leadership in quick commerce.
Nuvama maintained a ‘Buy’ rating on Zomato shares and raised the target price to ₹245 per share from ₹180 earlier.
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