In this post we will do a Zomato share analysis in depth, their fundamentals, future view, company’s outlook, their financials, shareholding patterns, share forcast etc. Based on company’s fundamentals and technical analysis, we will try to predict Zomato share price target 2023,2024,2025.
Zomato Limited is one of the leading online Food Service platforms in terms of the value of food sold. It was incorporated in 2010. Its offerings include food delivery, dining-out services, Loyalty programs, and others.
Zomato IPO (Initial Public Offering)
The company raised 9375 Crs through the IPO of which 9000 Crs was a fresh issue and the remaining 375 Crs being an Offer for sale. The company got successfully listed on the exchange on July 23, 2021, with an 80% listing gain.
Zomato Share Price Target 2023
|Year||Zomato Share Price in 2023|
|2023||₹61 to ₹75|
|Company Name||Zomato Ltd|
|Market Cap (Cr.)||₹ 48,327|
|52 W High / Low||₹ 95.4 / 40.6|
|Book Value||₹ 23.8|
|P/B (Price to Book Value)||2.36|
|Face Value||₹ 1.00|
|Dividend Yield||0.00 %|
Broadly, Zomato operates in three business segments:
1) Food delivery
2) Dining out
3) Hyper pure.
- Footprint in India doubled from 455 cities to 1,000+ cities
- As of December 31, 2020, Zomato has established a strong footprint across 23 countries with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an average monthly food order of 10.7 million customers.
- During FY21, 32.1 million average Monthly Active Users visited its platform in India.
- As of March 31, 2021, Zomato had 389,932 Active Restaurant Listings.
- Zomato mobile application is the most downloaded food and drinks application in India.
- Zomato is active in 1000+ cities with 500+ cities added in FY22.
- As of FY22, Zomato delivered orders worth Rs213Bn across 535.2 million orders, bringing the avg order value to ~Rs398.
- As of Q2FY23, Avg monthly transaction was 17.5Mn, Avg monthly active food delivery restaurant partners 2,07,000 and active delivery partners were 3,41,000.
- Its international segment contributes about a tenth of its business and 2.5% of its total assets.
Zomato Financial Review (Important Points for Investors)
- Company sales are increasingly but their expenses are higher than their revenue therefore company continuously making losses.
- To compete with their competitor, company regularly expending to increase their presence.
- On March 2022, Company’s revenue was INR 3,611 crore, whereas their expense was INR 5,238 crore, therefore company booked a net loss of INR 1,627 crore.
- On balance sheet you can check they have good reserve that is also increasing because they have some marquee investors , and company is generating funds from their investors.
- On March 2022, Company’s total reserves was INR 15,980 crore, which increased in sep 2022 to INR 19481 crore and company using their reserves for their businesses.
- Company’s maximum equity portion hold their Investors, As on Dec, 2022, the aggregate foreign shareholding in the Company was approx 56.74 %.
- As on Dec 2022, DIIS holds total of 7.43 % stake in the company.
- The good thing about Zamoto is the company is almost debt free, as on March 2022, company have only INR 30 crore of debt.
- As on Sept 2022, company total fixed asset value was around INR 1,411 crore.
- The positive thing is company has a good investment of INR 9,125 crore as on sept 2022.
- If you will analyze company’s quarterly results, then you will find last few quarters company reduced their losses, that is a good thing.
- Zomato not generating profits therefore there return on equity (ROE) and Return on Capital Employeed (ROCE) is in negative.
- Similarly due to regular losses you will not get their Price to earnings (PE) ratio.
Zomato Share Price Target 2024, 2025
Zomato Share Price Target 2024
|Year||Zomato Share Price in 2024|
|2024||₹88 to ₹98|
Zomato Share Price Target 2025
|Year||Zomato Share Price in 2025|
|2025||₹120 to ₹140|
The company has made 14 acquisitions from its inception till FY21, and post the IPO the company has acquired a 6.4% stake in Curefit Health Pvt Ltd for 100 Mn USD.
Zomato had announced the deal in June after its board approved the Rs 4,447 crore transaction to acquire Blinkit.
Zomato SUBSIDIARY/ASSOCIATE COMPANIES:
As on March 31, 2022, the Company has 28 (Twenty-Eight) subsidiaries including 15 direct and 13 indirect subsidiaries, 1 joint venture and 1 associate Company, in India and abroad.
Zomato Shareholding Patterns:
Zomato Share Price Target 2030:
|Year||Zomato Share Price in 2025|
|2030||₹375 to ₹420|
Overall Zomato is in a unique business model, company is not generating profit, but company don’t have debt, and company expanding their business, therefore in coming futures we can expect a good growth in the company.
Here is the end of the post Zomato share fundamental analysis, hope you got some value, please post your valuable comments below in comment section.
Source: Zomato Annual Report and Internet
Disclaimer: On this page all the mentioned entries are based on the date the post was written, these could be change in future.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at email@example.com.