Zomato’s share price witnessed a 6% decline on May 14th after the company unveiled its Q4 results. The food delivery platform reported a consolidated net profit of ₹ 175 crore during the fourth quarter of FY24, marking an improvement from the loss of ₹ 188 crore incurred in the same period the previous year.
Zomato’s net profit witnessed a 27% increase from the ₹ 138 crore reported in the December quarter, while its revenue from operations in Q4FY24 surged by 73% to ₹ 3,562 crore. Despite the share price decline, analysts have maintained their bullish sentiment towards Zomato shares and have even increased target prices for the stock.
Emkay Global Financial Services retained its FY26E earnings per share (EPS) estimates while slightly lowering FY25E EPS by ~20% due to the potential for slower profitability for Blinkit. However, the brokerage maintained a ‘Buy’ rating with a Zomato share price target of ₹ 230 per share.
Nuvama Institutional Equities valued Zomato using SOTP, assigning a value of $10 billion to the food delivery segment and $13 billion to Blinkit, citing the latter’s faster-than-expected growth. The brokerage upgraded its target price for Zomato shares to ₹ 245 per share, maintaining a ‘Buy’ rating.
Elara Capital also reiterated a ‘Buy’ rating for Zomato shares and raised its target price to ₹ 280 per share from ₹ 250 previously. CLSA maintained a ‘buy’ rating on the stock and increased its target price to ₹ 248 per share. Despite the post-results dip in share price, brokerages remain confident in Zomato’s long-term prospects.
