Zomato Ltd
Incorporated in 2010, Zomato Limited is one of the leading online Food Service platforms in terms of the value of food sold. Its offerings include food delivery, dining-out services, Loyalty programs, and others.
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.
Product Portfolio
- Food delivery– Over the last few years, Zomato has experienced rapid growth in food delivery in India As of FY22, Zomato delivered orders worth Rs213Bn across 535.2 million orders, bringing the avg order value to Rs398, GOV was Rs213. 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
- Dining out– Zomato currently monetizes its dining-out offering through advertisement sales products through which restaurant partners pay the company for enhanced visibility on its platform.
- Hyper pure– Hyper pure is Zomato’s farm-to-fork supplies offering for restaurants in India. Zomato sources fresh, hygienic, quality ingredients and supplies directly from farmers, mills, producers, and processors to supply to its restaurant partners, helping them make their supply chains more effective.
- Blinkit– The company is presently operating in 15 cities in India. By FY24, they aim for 480 stores. The company is expecting to breakeven by Q1FY25.
Shareholding Pattern
- Promoters
- Public
Financial Summary
| Particulars | March 2021 | March 2022 | March 2023 |
| Sales | 7,079 | 4,192 | 1,994 |
| Sales Growth % | 69% | 110% | -23% |
| Operating Profit | -1,211 | -1,851 | -467 |
| OPM % | -17% | -44% | -23% |
| Profit before tax | -1,015 | -1,220 | -815 |
| YOY Growth | 7% | 7% | – |
| EPS in Rs | -1.14 | -1.54 | -23,123.76 |
Synopsis of Financials
- Sales has increased due to increase in Services and other income.
- Moreover, bank depoists and government securties has also increased.
- Profit of the company has grown majorly due to revenue from services.
Final Outlook
Zomato Ltd. has favorable long-term prospects because of the brokerage. The management has stated in the most recent conference calls that they hope to achieve 4-5% EBITDA margins in the food business and anticipate 25–30% YoY growth in food delivery the following quarter. These statements indicate that Zomato’s future appears to be bright. Additionally, Zomato reported profits for the previous two quarters. The company’s financial statements show that a sizable loan balance has also been repaid. Zomato also reported a high number of orders on this New Year’s Eve; it is anticipated that these orders were a combination of FY5,16,17,18,19, and 20. The brokerage recommends purchasing at the current price of ₹124 with a target price of ₹156 per share, offering an upside potential of 25.8%.
Disclaimer: The information provided here is for general informational purposes only and should not be considered as professional financial, investment, or legal advice.The user assumes all risks associated with their use of the information.
Zomato-Ltd