Tag: Zomato

Zomato shares may see $38 million inflows after 50% rally in 2024 so far

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Zomato Ltd. were trading a percent higher in trade Wednesday after a note from Nuvama Alternative and Quantitative Research said that the online food aggregator has seen an increase in weightage on the MSCI Global Standard Index.

The quantum of the increase though, remains unknown.

However, the domestic brokerage house projects that based on the increase in weightage, shares of Zomato may see inflows worth $38 million through a purchase of nearly 16.9 million shares, which is 0.3 times of its average volume.

Zomato shares have already risen 50% so far in the first four-and-a-half months of 2024.

Analyst at multiple brokerages like CLSA, Jefferies, Bernstein and Elara have raised their target prices on the stock to ₹280 per share following an impressive show in its fourth quarter earnings.

CLSA upped its target price on Zomato to ₹248, Bernstein to ₹230, Jefferies ₹230 while Elara Capital had the highest target at ₹280.

The brokerages were impressed again with the growth in Blinkit as the quick commerce platform’s gross order value (GOV) grew by a solid 13.7% sequentially driven by a 17% quarter-on-quarter in orders offset by 3% quarter-on-quarter decline in average order value (AOV).

The announcement to increase dark stores count to 1,000 by the end of FY25 from 525 in the last quarter of FY24 marks a significant reset in expectations and positioning within the quick commerce for Blinkit.

Shares of Zomato are trading almost flat at ₹187.60 apiece on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zomato shares correct 10% in two sessions after stock triples in a year; Should you buy the dip?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Zomato Ltd. tumbled more than 5% in Tuesday’s trading session even after multiple brokerages retained their bullish outlook and raised their price targets on the stock. The online food aggregator put up a steady show in the January to March 2024 period after a solid last few quarters.

The Street’s bullish. Here’s a look at the target price for Zomato shares:

What’s working for Zomato:

Zomato’s quick commerce business, Blinkit achieved operational EBITDA break-even in March 2024.

Emkay Global in a note said the management has guided to Blinkit remain closer to break-even levels at adjusted EBITDA for the next few quarters, considering the aggressive store expansion plan.

Blinkit plans to raise its dark store count from 525 in the March quarter of the financial year 2024 to 1,000 by the end of the financial year 2025.

Most of the store expansion should happen in the top-eight cities, where the management sees significant scope for growth as the company is still largely underpenetrated, Emkay said.

Nuvama Institutional Equities said the announcement to increase its dark stores count marks a significant reset in expectations and positioning within the quick commerce for Blinkit.

“While this shall impact short-term profitability, this shall cement Blinkit as the clear leader in quick commerce,” Nuvama said while valuing Zomato’s food delivery at $10 billion and Blinkit at $13 billion.

The upgrade, Nuvama said, was due to an increase in the value of Blinkit due to faster-than-expected growth and clear leadership in quick commerce. It has maintained a ‘buy’ rating and revised upward its target price on the scrip to ₹245 from ₹180 earlier.

CLSA has maintained a ‘buy’ recommendation on the Zomato stock, saying the ESOP costs impacted the fourth quarter and are expected to be higher going ahead.

The foreign brokerage has upped its target price to ₹248 per share on strong guidance for Blinkit and Zomato’s clear focus on quick commerce growth.

Citi, which has a ‘buy’ tag on Zomato, said the company exited the March quarter with adjusted EBITDA breakeven in quick commerce and is on track with its guidance for the first quarter of FY25. Citi has raised its target to ₹235 per share.

The foreign brokerage said the management is sharply accelerating its dark-store footprint in quick commerce and expects to maintain adjusted EBITDA breakeven in quick commerce through FY25.

Bernstein has maintained an ‘outperform’ rating on Zomato, saying the growth for Blinkit impressed again. The brokerage has raised its target upward to ₹230 per share.

Bernstein continues to reinforce its conviction on quick commerce business achieving the breakeven milestone. The company plans to prioritise growth, maintaining a long-term adjusted EBITDA target of 4-5%.

Zomato had a dream run over the last 12 months, which is reflected in its share price move, and the management recognises that investor expectations are running high, Jefferies said in a note while maintaining a ‘buy’ rating with a revised target price of ₹230.

The brokerage said the breakeven in quick commerce was a key highlight in the March quarter and now the focus is shifting to aggressive growth as store count is set to double next year.

“Management is top-notch – although easy money is made and return expectation should be more modest at least in next few months,” Jefferies said.

Zomato shares are trading with losses of 2.57% at ₹189.30 per share on the NSE. The stock has rallied 200% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zomato Q4 Results: Blinkit turns EBIT positive; Other income aids profit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Zomato Ltd., the food delivery aggregator told exchanges that its Quick Commerce business, Blinkit, turned profitable on an Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) basis in the month of March 2024. Revenue for Blinkit also more than doubled year-on-year to ₹769 crore.

The company also said that a rapid store expansion is underway in the quick commerce business and that it is aiming for 1,000 stores by March 2025.

Last month, Goldman Sachs had written in a note that the implied value of Blinkit is now larger than Zomato’s core food delivery business.

Zomato reported a net profit of ₹175 crore for the March quarter, compared to a net loss of ₹188 crore during the same quarter last year. The profit figure was also aided by a 37% jump in the company’s other income, which came in at ₹235 crore.

Zomato continues to generate substantial other income considering it has cash worth over ₹12,000 crore on its books.

Revenue for the quarter stood at ₹3,562 crore, a growth of 73% compared to the same period last year.

The company also reported EBITDA of ₹86 crore, compared to a loss of ₹226 crore during the same period last year.

Zomato reported EBITDA margin of 2.4% during the quarter.

Here are some of the other highlights for Zomato’s March quarter:

• Gross Order Value (GOV) growth across B2C businesses, including food delivery, quick commerce and going out increased by 51% to ₹13,536 crore.
• B2B business, or Hyperpure also reported a 99% growth in its revenue and losses also narrowed substantially.
• Added 75 new stores in financial year 2025, taking the total store count to 526.
• Food delivery business saw revenue growth of 48% from last year, while EBIT for the business more than tripled to ₹281 crore. Margin for the food business also increased to 16.2% from 6.9% during the quarter.
• Contribution margin for the quarter stood at 7.1% during the quarter, up from 5.8% in the year-ago period and flat compared to the December quarter.

Shares of Zomato fell as much as 7% post the earnings announcement before recovering from the lows of the day. The stock is currently trading 2.2% lower at ₹196.9. The stock has risen 200% in the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mother’s Day celebrations boost quick commerce sales across India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Consumer purchases across quick commerce platforms witness an uptick led by Mother’s Day celebrations across India.

Recent data from quick commerce platforms like Zomato, Swiggy Instamart, Blinkit, and Zepto reveal trends in consumer behaviour, highlighting an increased demand for a variety of products on Sunday, May 12. Analysis from both platforms shows that items like jewellery, plants, flowers, and chocolates are experiencing peak orders.

Zomato reports that for the first time, Mother’s Day is witnessing significantly higher sales volumes than New Year’s Eve. Over 2 lakh people have used Zomato’s new AI feature, which allows customers to add a personalised celebrity video message to their orders, since its launch.

As per Swiggy Instamart’s data, 143 chocolates and 41 cards are being sold per minute today. The platform witnessed a 141% surge in orders for handbags, perfumes, and watches marking a new record for single-day orders. Not just that, orders for jewellery have also gone up 11.4 times from last week.

Sales of plants as gifts have soared 7.7 times as compared to a regular Sunday.

Additionally, Zomato-owned quick commerce platform Blinkit shared that handbag sales have seen an uptick compared to usual days. The company has also sent free fridge magnets specially designed for Mother’s Day.

“The company has never sold so many smartwatches by 11 am,” said Albinder Dhindsa, CEO of Blinkit. Bouquet sales have also been up as compared to Valentine’s Day.

Jewellery and perfume sales have zoomed in as well. Zepto has also launched Mother’s Day special greetings and customers seem to enjoy it.

These trends suggest a pattern where consumers turn to quick delivery services to purchase thoughtful, last-minute gifts. These insights are crucial for these platforms in tailoring their inventory and marketing strategies, ensuring product availability during high-demand periods.

Also Read: Mother’s Day 2024: Handwritten letter to personalised jewellery, gifts to express gratitude

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Swiggy revives homestyle food ordering service Daily to take on Zomato Everyday

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nearly four years after shutting down Daily, a homestyle food service, Swiggy has restarted the service in select areas, Moneycontrol has learnt. Introduced first in 2019, Swiggy shut down Daily after demand dipped during Covid-induced lockdowns.

Since Swiggy Daily was primarily used by office-goers, the company had pulled the plug on the service as a majority of its user base was working from home during the lockdown. But now, as most people have returned to working from the office for several days a week, the startup wants to revive the offering and tap into the market currently dominated by Zomato Everyday.

Zomato Everyday was first piloted in select areas of Gurugram in February last year. Since then, the service has expanded to multiple cities across locations, underscoring that demand for affordable, homestyle food still exists. Both Swiggy and Zomato offer meals between Rs 89 and 150 under this category.

For IPO-bound Swiggy, currently on a clean up spree and consolidating several divisions into one, reviving an old offering is a rare move. However, unlike the first iteration, Swiggy Daily is now integrated into the main app.

“Swiggy has matured more as a company since 2020, in terms of supply chain, cost efficiencies and thinks Daily is a promising category to be present in – the conviction is high. It is targeting people living as paying guests (PGs), hostels and regular office goers through Daily,” a person aware of the developments told Moneycontrol.

Swiggy did not respond to Moneycontrol’s queries.

The homestyle food market is largely unregulated with dabbawallas and small caterers meeting demand. Swiggy, which takes credit in first starting the service back in 2019, now hopes to pull customers away from Zomato.

Through Daily, Swiggy wants newer customers come on to the app and try its services. It anticipates that these customers will stick to the platform and continue transacting across categories after that, which will push up its market share.

Swiggy, which is hoping to make a public market debut later this year, needs to increase its base of users. Swiggy currently has a total of 14-16 million users as opposed to Zomato’s 18.6 million monthly transacting users, analysts at Bernstein said in a client note last month.

The report pegged Swiggy’s food gross merchandise value (GMV) at $1.4 billion lagging Zomato’s $1.7 billion as of 1HCY23.

Road to Dalal Street

Swiggy filed its draft IPO papers with the Securities and Exchange Board of India (SEBI) last month, as first reported by Moneycontrol. The company plans to raise up to Rs 3,750 crore (around $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) as an offer-for-sale (OFS) component, as reported earlier.

In the run up to the IPO, Swiggy recorded a $207 million loss in the nine months to December 2023. That loss was on a revenue of $1.02 billion during the same period, compared with fiscal year 2022-23 revenue of $1.05 billion.

Swiggy saw its revenue rise 45 percent to Rs 8,625 crore in FY23, while its net loss widened to Rs 4,179 crore, according to the company’s annual filings. In FY22, the hyperlocal commerce unicorn had registered a revenue of Rs 5,705 crore and a net loss of Rs 3,629 crore.

For comparison, arch-rival Zomato’s revenue had risen 66 percent to Rs 7,761 crore in FY23, while net loss narrowed to Rs 971 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zomato sets up Weather Union—crowd-sourced network of 650 weather stations across India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a bid to risk-proof its business from unpredictable weather conditions, foodtech giant Zomato has developed a crowd-supported weather infrastructure that provides real-time and localised climate data.

The platform called Weatherunion.com is an on-ground network of 650 weather stations, offering critical information on “Temperature, humidity, wind speed, rainfall, etc”.

Zomato CEO Deepinder Goyal, in a post on X (formerly Twitter), said that Weatherunion.com will be accessible for free using API. He added that the data provided by the platform could unlock weather uses for enterprises and research institutes and boost productivity.

“At Zomato, it was crucial for us to have access to precise and real-time weather information to make the right business decisions to serve our customers better. Hence, we took it upon ourselves to develop a solution capable of empowering us on this front,” Goyal said.

Excited to unveil India’s first crowd-supported weather infrastructure, https://t.co/pUhhX8zKMe. A proprietary network of 650+ on-ground weather stations, it is the largest private infrastructure of its kind in our country.

These weather stations, developed by Zomato, provide… pic.twitter.com/lc5XQJJtO2

— Deepinder Goyal (@deepigoyal) May 8, 2024

The platform was made in collaboration with Center for Atmospheric Sciences – IIT Delhi and Zomato expects to see more partnerships. “This rich data holds significant potential in unlocking weather use cases for enterprises and research institutes. Having already collaborated with CAS – IIT Delhi, we expect more institutions and companies to benefit from this and contribute towards the greater good of our economy,” Goyal added.

Weatherunion.com will be part of Zomato’s CSR efforts programme called Zomato Giveback. The company will bear the cost of the weather station requiring volunteers to only share space. Zomato did not provide any comments to CNBC-TV18 on the investment outlay for this project.

Weather Union is currently present across 45 large cities and will soon be expanded. “Also, a lot of Zomato employees have hosted weather stations at their homes. As we look forward to further expanding this infrastructure, we welcome volunteers who want to provide us space on their premises to install these weather stations and contribute to nation-building,” the Zomato CEO said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Startup Digest: Japan-based Mynavi acquires Awign, Blinkit more valuable than Zomato’s food delivery biz and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan-based Mynavi acquires HR tech startup Awign in an all-cash deal

Japan-based HR solutions provider Mynavi Corporation has acquired a majority stake in human resource tech platform Awign, which as per the firm is the largest HR deal in India in 20 years.

Under the new structure, Awign aims to generate $1 billion revenue by 2030. With this acquisition, few of the Bengaluru-based company’s early investors including Capria, Lumis, MSDF, Amicus Capital and Pankaj Bansal will exit the company.

“Mynavi will hold a significant majority in the company and co-founders of the company will also continue to hold a sizable stake. As part of this acquisition, the board constituency will change because Mynavi will acquire a sizable majority but the operating layer will remain the same. Mynavi is not going to appoint any operator in our company,” Awign Co-founder and CEO, Annanya Sarthak said.

Capria closes Rs 153 crore India Opportunity Fund following multi-fold return from Awign exit

Capria Ventures has announced the close of its India Opportunity Fund at Rs 153 crore (~$19M). This comes on the heels of a full-cash exit from its portfolio company Awign. The venture capital firm has sold its stake in Awign to Japan-based human resource solutions provider Mynavi Corporation. According to Capria, Awign has seen 20 times growth in revenue since Capria first led its seed round investment in 2018.

In February 2023, Capria achieved the first close of India Opportunity Fund at Rs 75 crore. The fund was called Unitus Ventures India Opportunity Fund before Capria and Unitus joined hands to operate as a single brand, Capria, in September 2023.

Capital from the first close of this fund was invested in the breakout leaders of its early-stage funds (Capria India Fund I and Capria India Fund II), such as Awign, BetterPlace, Cuemath, Eduvanz, and Masai.

Blinkit more valuable than Zomato’s food delivery biz: Goldman Sachs

Brokerage firm Goldman Sachs believes that the implied value of Zomato’s quick commerce business, Blinkit, is now larger than the parent’s core food delivery business.

Goldman Sachs is now valuing Blinkit at ₹119 per share at a $13 billion equity valuation. That’s higher than the food delivery business, which is being valued at ₹98 per share.

Zomato has been surprisingly positive on both profitability and the growth front, according to Goldman Sachs and the Gross Order Value (GOV) for Blinkit is nearly 50% higher than their estimate a year ago.

Norwest VP launches $3 billion new fund to back early & growth stage startups

Norwest Venture Partners, that has backed unicorns like Amagi, OfBusiness, Swiggy and Mensa, has raised its 17th global fund of $3 billion. The latest fund brings the firm’s total capital under management to $15.5 billion.

Called NVP 17, the fund will invest in early and growth-stage startups in the US, India and Israel, across sectors such as enterprise tech, consumer and healthcare. The VC has backed 43 Indian companies since entering the country in 2009.

Their investments range across stages – in the early and mid-stage companies the ticket size ranges from $10 – $30 million, and in the growth equity stages the ticket size ranges from $20 – $100 million. Recently, Norwest has also promoted three of its India team members — Nikhil Kookada and Ankit Prasad to principal; and Krish Kapadia to vice president.

FlashAid raises $2.5 million from Piper Serica Angel Fund, SOSV

Healthcare and Insurtech company Flashaid has raised $2.5 million in a Pre-Series A funding round led by Piper Serica Angel Fund and global venture capital firm SOSV. Early-stage investors —Z21 Ventures Fund and ZNL Growth Fund participated in this round.

The startup plans to use the fresh funds for growth and to expand to six new cities. Flashaid said it is building an API-first health cover to make health insurance affordable and accessible to digital India. It is developing a distinctive channel for retail health plan distribution via a B2B2C platform.

Over the last year, Flashaid claims to have partnered with over 20 platforms to distribute 30,000+ health covers and is profitable at the EBITDA level. The company is at an ARR of $ 1 million and is expected to grow to $10M ARR (annual run rate) in the next two years.

MatchLog Solutions gets $1.5 million to enhance sustainability and carbon efficiency in container logistics

MatchLog Solutions, a sustainable container logistics and supply chain optimization player, has bagged $1.5 million in Pre-Series A funding round led by Motion Ventures and July Ventures, with participation from Venture Catalysts, Blue Ashva Capital, and Capital A.

As per the firm, this funding will enable it to shift to a full platform model, emphasising carbon reduction as a core aspect of its offering. The investment will also expand MatchLog’s market presence, enhance strategic partnerships, and deepen collaborations within the global shipping and port ecosystems.

MatchLog said it is set to increase its footprint and scale in India and the growth is projected to handle around 4-5 million containers annually, resulting in a substantial reduction of 200,000 metric tons of carbon emissions each year.

Ideal Insurance bags Rs 8 crore in Pre-Series A funding

Insuretech platform Ideal Insurance has raised Rs 8 crore in Pre-Series A funding round led by family offices of VC Grid with participation from investors including Sagar Daryani of Wow Momo, Atha Group Family office, StyleBaazar Family office, Deven Bhandari and others.

“With a team of more than 300 and presence across 50+ cities, we plan to grow to 500 cities in the next 2 years with a premium collection of more than INR 1,100 crore and an EBITDA target of INR 33 crore,” said Rahul Agarwal, Founder and CEO of Ideal Insurance

Agarwal added, “We plan to raise $10 million this year at a valuation of $70-90 million to achieve our desired growth.”

Control One AI receives $350,000 from a clutch of investors

Control One AI, an AI first Robotics Startup has raised $350,000 from a group of investors in the United States and India. The funding saw participation from Kunal Shah (Founder, CRED), Chaitanya R (Co-Founder,Wakefit) & Amit Singh (Ex-MD, Avendus Capital) and Silicon Valley based Top Supply Chain executives from Tesla, Amazon, Walmart, eBay, Mercedes-Benz, and General Electric.

The startup is building an AI specially tailored for Slow Moving Equipments utilised throughout the Supply chain.

The funds raised is aimed at creating a fully functional prototype and conducting successful pilot validations. The firm is also looking to unveil the first fully functional prototype to demonstrate the AI in action which will revolutionise the existing infrastructure and even democratize automation to all.

Ramoji Group invests in FlexiCloud to expand cloud solutions in Kerala

Ushodaya Enterprises, the parent company of the Ramoji Group, has made strategic investment in Kochi-based FlexiCloud Internet, a provider of advanced managed cloud hosting solutions. This investment is part of Ushodaya’s efforts to expand its footprint in Kerala, a statement said.

The fresh capital will be used to augment company’s technological base, expand its research and development efforts, and increase its market penetration.

This investment will also help improve FlexiCloud’s PaaS offerings in the cloud sector and incorporate AI and machine learning into their services. “Thanks to this investment, we can push the boundaries of what our cloud technologies can achieve, offering more to our clients than ever before,” said Binu Mathew, CFO of FlexiCloud.

GLOBAL TECHNOLOGY & STARTUP NEWS

Microsoft results top Wall Street targets, driven by AI investment

Microsoft beat Wall Street estimates for third-quarter revenue and profit, driven by gains from adoption of artificial intelligence across its cloud services.

The rise in Microsoft shares after the bell lifted the company’s stock market value by $128 billion as profit and revenue growth overshadowed its higher-than-expected capital expenditures.

Microsoft revenue rose 17% to $61.9 billion in the quarter ended March, exceeding the consensus estimate of $60.80 billion, according to LSEG data. Earnings per share of $2.94 topped Wall Street’s target of $2.82.

Google parent announces first-ever dividend; beats on sales, profit

Alphabet has announced its first-ever dividend and a $70 billion stock buyback. The Google parent is returning capital while spending billions of dollars on data centers to catch up with rivals on generative artificial intelligence. The dividend will be 20 cents per share.

Alphabet beat expectations for the quarter in sales, profit and advertising – metrics that are all closely watched. Alphabet’s after-hours share surge of nearly 16% following the report increased its stock market value by about $300 billion to over $2 trillion.

In a call to discuss results, CEO Sundar Pichai touted Google’s AI offerings as a boon to its core search results. “We are encouraged that we are seeing an increase in search usage among people who are using the AI overviews,” he said. Revenue was $80.54 billion for the quarter ended March 31, compared with estimates of $78.59 billion, according to LSEG data.

Snapchat parent soars after beating revenue, user growth estimates

Shares in Snap jumped nearly 25% in premarket trading after targeted ads and new features helped the owner of the photo messaging app beat Wall Street expectations for first-quarter revenue and user growth.

The Snapchat parent now expects second-quarter revenue between $1.23 billion and $1.26 billion, above analysts’ estimates of $1.22 billion, according to LSEG data. Snap said its business was improving faster than expected due to upgrades of its ad system and higher demand for features that help brands drive sales or website clicks.

Daily active users of Snapchat increased to 422 million during the quarter, above estimates of 419.6 million. The company said first-quarter revenue grew 21% to $1.2 billion, above estimates of $1.12 billion.

ByteDance prefers TikTok shutdown in US if legal options fail: Report

TikTok owner ByteDance would prefer to shut down its loss-making app rather than sell it if the Chinese company exhausts all legal options to fight legislation to ban the platform from app stores in the U.S., Reuters reported.

The algorithms TikTok relies on for its operations are deemed core to ByteDance’s overall operations, which would make a sale of the app with algorithms highly unlikely, said the sources close to the parent.

TikTok accounts for a small share of ByteDance’s total revenues and daily active users, so the parent would rather have the app shut down in the U.S. in a worst case scenario than sell it to a potential American buyer, they said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zomato’s quick commerce business is now more valuable than food delivery, says Goldman Sachs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Brokerage firm Goldman Sachs believes that the implied value of Zomato’s quick commerce business, Blinkit, is now larger than the parent’s core food delivery business.

Goldman Sachs wrote about this in its note while maintaining a ‘buy’ recommendation on the stock and raising the price target on the food delivery aggregator to ₹240 from ₹170 earlier.

The brokerage said the Street is still under-appreciating Zomato’s growth and profit potential in the online grocery segment.

Goldman Sachs is now valuing Blinkit at ₹119 per share at a $13 billion equity valuation. That’s higher than the food delivery business, which is being valued at ₹98 per share.

Zomato has been surprisingly positive on both profitability and the growth front, according to Goldman Sachs and the Gross Order Value (GOV) for Blinkit is nearly 50% higher than their estimate a year ago.

Blinkit is likely to see a compound annual growth rate (CAGR) of 53% in its Gross Order Value between the financial years 2024 and 2027, according to Goldman Sachs. This will also drive a 32% adjusted revenue CAGR for Zomato on a consolidated basis.

Zomato’s projected revenue CAGR is the highest within Goldman Sachs’ food delivery and India internet coverage.

Goldman Sachs sees further potential for Zomato’s valuation multiples to re-rate as it continues to improve profitability, particularly in the quick commerce business.

Despite the stock trebling in the last 12 months, it trades at the financial year 2026 price-to-earnings multiple of 48x or 0.9x price-to-earnings growth, which is significantly lower than the MSCI India / India Consumer Discretionary, which trades at 1.4x and 3.2x price-to-earnings-growth, respectively.

The brokerage highlighted that Zomato’s EBITDA margin is the highest among global food delivery platforms and a similar scenario is likely to play out in the quick commerce business, whose margins can exceed those of the food delivery vertical.

Of the 28 analysts that have coverage on Zomato, 24 have a ‘buy’ recommendation, while the rest have a ‘hold’ rating.

Shares of Zomato ended little changed on Thursday at ₹184.65, but the stock has risen 217% in the last 12 months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zomato founder Deepinder Goyal was the buyer in Delhi’s biggest land deal last year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There were 29 land deals in the National Capital Region (NCR), which includes New Delhi and areas around it like Gurugram and Noida, in the last financial year ending March 2024.

Most of the land deals (22 out of the 29) were in Gurugram. There was only one large land deal Delhi and the buyer was none other than Deepinder Goyal. the founder of ₹1.6 lakh crore ($20 billion) food delivery giant, Zomato.

Goyal spent ₹79 crore to buy a five-acre property at Dera Mandi in Delhi between January and March 2024.

Most other names in the list of top land buyers — 25 out of 29 deals — in and around Delhi included real estate developers who will eventually build residential societies on these properties.

Earlier in 2023, Mumbai-based Godrej Properties, the $8 billion developer listed on the stock exchanges, paid ₹900 crore for a 7.91 acres of land on Golf Course Road in Gurugram.

Aside from the parcel on Golf Course Road, Godrej Properties also struck two other deals for properties in Gurugram and Noida. The total value of all the land bought by the company last year was ₹1,803 crore.

DLF Homes Developers signed a deal to buy 29 acres of land at Golf Course Ext Road in Gurugram for ₹825 crore in the last quarter of FY24.

314 acres of land were bought and sold in these deals, compared to 23 deals covering 273.9 acres a year earlier, data from Anarock, a real estate consulting firm, showed.

Experion Developers signed four deals to buy land in Gurugram and Noida with a combined value of ₹1,650 crore.  

Interestingly, online gaming company Gameskraft Technologies Private Ltd signed a deal to buy 8.61 acres of land for ₹90 crore in Balola village in Gurugram for “educational purpose”.

These are some interesting facts about the land deals in NCR in the financial year ending March 2024: 

208.2 acres of land were bought and sold in Gurugram in 22 deals

20 out of these 22 land deals in Gurugram were exclusively for residential development.

At least two land deals, spanning over 7 acres each, were planned specifically for commercial real estate projects.

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Zomato raises platform fee by 25% and the Street loves it

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of food delivery aggregator Zomato Ltd. jumped nearly 5% in Monday’s trade after the company raised its platform fee, a few weeks before announcing its fourth quarter results. The company upped its platform fee by 25% to ₹5 per order.

The online food delivery giant introduced a platform fee — the flat charge that food delivery firms charge from customers per order — of ₹2 in August 2023. The platform fee was later increased to ₹3 to boost its margins and become profitable.

In January this year, Zomato had again increased its mandatory platform fee to ₹4 from ₹3 per order across key markets.

Its rival Swiggy charges a platform fee of ₹5 on food-delivery orders.

Following the fresh hike, Zomato shares were trading 2.62% higher at ₹194.15 apiece on the NSE during Monday’s afternoon deals. The stock has risen more than 55% this year, making analysts bullish on the counter.

Global brokerage firm UBS expects Zomato shares to hit ₹250 in the next one year. However, this isn’t the highest target for the stock on the Street. Other brokerages including ICICI Securities (₹300) and JM Financial (₹260) have targets higher than UBS for Zomato’s shares.

The foreign broking firm said that Zomato’s quick commerce growth and margin potential are underappreciated by the Street.

UBS expects Zomato’s Gross Merchandise Value (GMV) to reach $10.2 billion by the financial year 2029 or over the next five years, which is 20% above consensus, as per a detailed Total Addressable Market (TAM) and unit economics framework.

Additionally, the brokerage expects Zomato’s EBITDA margin to touch 9%. which is almost double the consensus estimates, over the next five years or by the financial year 2029.

Of the 28 analysts that track the Zomato stock, 24 maintain a ‘Buy’ recommendation on the stock, while four have a ‘Sell’ rating.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow