Zomato Share May Slip To ₹130, Says Macquarie

Macquarie retained its ‘underperform’ rating on Zomato by pegging a target price of ₹130 apiece. The move indicates a 50% downside from Tuesday's closing levels.

The brokerage firm noted of having a closer look at the profitability and long term sustainability of these businesses.

It added that the company’s gross order value for its food delivery and Quick Commerce business is set to grow at a Compounded Annual Growth Rate (CAGR) between 18% and 35% during the 10-year period.

During the September (Jul-Sep) quarter, Zomato reported a net profit of ₹176 crore, which is lower as compared to Jefferies estimates of ₹245.3 cr. In the same quarter last year, the food aggregator reported a net profit of ₹36 crore.

Revenue for this quarter stood at ₹4,799 crore, up by 69% from the same quarter last year. However, Jefferies predicted a revenue figure of ₹5,042.7 crore.

A total of 24 out of 27 analysts have given a ‘buy’ rating on the stock, while the remaining 3 have recommended to sell.

Shares of Zomato fell by about 13% from its recent high of ₹298. However, it’s 107% up on a year-to-date basis. Currently, it is trading in red at ₹258.50 on NSE, down over 1%.