Zomato’s performance continues to draw a range of opinions from major brokerages, including HSBC, Nomura, Macquarie, and now UBS.
HSBC maintained a buy rating, with a target price of ₹330, pointing to a 28.8% upside from the current market price. HSBC highlighted Zomato’s strong quick commerce growth and stable margins, backed by its aggressive investment in expanding its brand.
Nomura also gave a buy recommendation, with a target price of ₹320, suggesting a 24.9% upside. According to Nomura, Zomato’s quick commerce remains on a strong growth path, while the food delivery business remains steady.
Macquarie offered a contrasting view, maintaining an underperform rating with a target price of ₹100, raising concerns over Blinkit’s lack of margin improvement and Zomato’s overall food delivery margins lagging consensus expectations.
UBS, in its latest report, maintained a buy rating with a target price of ₹320. UBS noted strong growth in quick commerce during Q2FY25, which offset the slight moderation in food delivery. The brokerage also highlighted that Zomato’s take rates were slightly lower, attributing this to seasonality.
With mixed views from leading brokerages, investors may weigh the near-term challenges and long-term opportunities, particularly in the fast-growing quick commerce space.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
