In early trading on Tuesday, Zomato’s share price witnessed a 6% decline following the company’s announcement of its Q4 results. Zomato shares fell by as much as 5.98% to ₹182.10 each on the BSE.
Zomato reported a consolidated net profit of ₹175 crore in the fourth quarter of FY24, marking a significant improvement compared to the ₹188 crore loss incurred in the same period last year. The net profit grew by 27% from ₹138 crore posted in the previous quarter ending in December.
Revenue from operations in Q4FY24 surged by 73% to ₹3,562 crore from ₹2,056 crore year-on-year (YoY). The gross order value (GOV) for the March quarter also witnessed a robust growth of 51% YoY to ₹13,536 crore across its business-to-consumer (B2C) segments.
At the operational level, the company achieved an EBITDA of ₹86 crore, a significant improvement from the loss of ₹226 crore reported during the same period last year.
Zomato’s quick commerce arm, Blinkit, achieved operational EBITDA break-even in March 2024.
Financial analysts maintained an optimistic outlook on Zomato shares, with some revising their target prices upwards due to the continued strong performance of Blinkit.
Emkay Global Financial Services noted steady operational results from Zomato, with revenue surpassing estimates, although a margin miss was attributed to higher-than-expected ESOP costs. The firm retained its ‘Buy’ rating with a target price of ₹230 per share.
Nuvama Institutional Equities highlighted Blinkit’s expansion plans and its potential impact on short-term profitability, maintaining a ‘Buy’ rating with a revised target price of ₹245 per share.
Elara Capital emphasized Zomato’s strong position in the food business and superior execution for Blinkit, leading to an adjusted EBITDA CAGR of 47% in FY24-26E. The brokerage raised its target price to ₹280 per share and maintained a ‘Buy’ rating.
At 9:20 am, Zomato shares were trading 4.96% lower at ₹184.10 apiece on the BSE.
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