- Zomato‘s net income for the second quarter reported at 1.76 billion rupees, a significant increase from 360 million rupees the previous year, but below the estimate of 2.49 billion rupees.
- Revenue reached 48 billion rupees, surpassing the estimate of 46.92 billion rupees and marking a 68% year-over-year growth.
- Food delivery revenue grew by 30% year-over-year to 20.1 billion rupees, slightly missing the estimate of 20.64 billion rupees.
- Hyperpure revenue experienced a substantial increase of 98% year-over-year, reaching 14.73 billion rupees.
- Quick Commerce revenue more than doubled compared to the previous year, totaling 11.56 billion rupees and surpassing the estimate of 11.19 billion rupees.
- Total costs amounted to 47.8 billion rupees, up by 57% compared to the previous year.
- Employee benefits expenses rose by 41% year-over-year to 5.90 billion rupees, slightly above the estimate of 5.82 billion rupees.
- Delivery and related expenses increased by 52% year-over-year, reaching 13.98 billion rupees.
- Adjusted revenue was reported at 51.27 billion rupees, marking a 58% increase year-over-year.
- Adjusted EBITDA came in at 3.3 billion rupees, a sharp increase from 410 million rupees last year, but below the estimate of 3.52 billion rupees.
- Zomato approved an INR85 billion Qualified Institutional Placement (QIP) to strengthen its balance sheet.
- Quick Commerce is operating near adjusted EBITDA breakeven.
- Following the reports, Zomato‘s shares fell by 3.5% to 256.35 rupees, with 69.7 million shares traded.
- Analyst recommendations include 24 buys, no holds, and 3 sells.
“`
Zomato on Smartkarma
Analysts on Smartkarma are closely following Zomato‘s future prospects. Janaghan Jeyakumar, CFA noted that Zomato‘s potential deletion from the BSE 100 could lead to significant index outflows. The company’s fate hinges on its expected inclusion in the F&O list and discretionary decisions by the index provider. On the bullish side, Brian Freitas highlighted the potential impact of Zomato‘s inclusion in the F&O segment, anticipating additions to headline indices like NIFTY and SENSEX, which could drive stock prices higher.
In a separate report, Janaghan Jeyakumar, CFA emphasized the importance of F&O membership for Zomato to avoid BSE 100 deletion. The analyst warned that Zomato‘s lack of F&O membership may trigger adverse consequences, as the BSE 100 rules could penalize companies without futures and options. Another bullish perspective comes from Sumeet Singh, who noted the strong momentum in Zomato‘s placements. AntFin’s intention to sell a portion of Zomato has generated interest, with past deals yielding mixed results. These insights shed light on the complex dynamics influencing Zomato‘s market position and future trajectory.
A look at Zomato Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Zomato Limited appears to have a promising long-term outlook. The company scores high in growth and momentum, indicating strong potential for expansion and market performance. With a resilience score of 4, Zomato also demonstrates a level of stability in facing various market conditions. However, the company’s value score is relatively lower, suggesting that there may be factors affecting its valuation. In terms of dividends, Zomato scores the lowest, indicating a limited focus on returning profits to shareholders.
Zomato Limited, an online restaurant guide and food ordering platform, connects customers, restaurants, and delivery partners worldwide. The platform allows users to search for restaurants, read and write reviews, order food delivery, reserve tables, and make payments. With high scores in growth and momentum, Zomato shows potential for continued success and innovation in the online food service industry, despite lower scores in value and dividends.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
