Shares of Zomato climbed 6 per cent in Monday’s commerce as a few brokerages remained optimistic on the inventory’s prospects. Overseas brokerage UBS maintained its ‘Purchase’ name on Zomato with an elevated goal worth of Rs 320 in opposition to Rs 260 earlier. Final week, Morgan Stanley had maintained ‘Obese’ on Zomato with a goal worth of Rs 278.
The Zomato inventory was additionally in information after CEO at Blinkit Albinder Dhindsa, Zomato’s fast commerce unit, stated his firm crossed all-time excessive orders in a day in a few minutes. “We additionally hit highest ever OPM (Orders per minute), GMV, chocolate gross sales and most different metrics at present. And at its peak – we hit 693 RPM (Rakhis per minute),” he stated.
Zomato shares rose 5.8 per cent to hit a recent excessive of Rs 280 on BSE. The inventory has climbed 202 per cent prior to now one 12 months.
UBS has elevated its gross merchandise worth (GMV) estimates for Zomato’s meals supply by 2-3 per cent for FY26-28 and fast commerce by 20-30 per cent for a similar interval, following sturdy Q1 outcomes and what it referred to as ‘strong steerage’. UBS stated its adjusted Ebitda estimates for the following 1-2 years are up solely barely as investments in constructing provide for fast commerce will seemingly lead to a extra modest margin trajectory.
“We’ve additionally elevated worker value estimates to mirror investments in manpower. These modifications, coupled with roll ahead of our valuations and better multiples for Ging Out and Hyperpure, result in increased PT of Rs 320,” UBS stated.
UBS stated Zomato shares are buying and selling at FY27 EV/Ebitda of 35 occasions in opposition to a mean of Indian client/retail friends at 30 occasions, with a superior progress and margin enlargement profile.
“Zomato’s meals supply enterprise is secure, and Blinkit provides a generational alternative to take part within the disruption of industries similar to retail, grocery and e-commerce. Our DCF-based valuation of Rs 300. We reiterate our Purchase score on the inventory,” MOFSL stated on August 1.
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