Morgan Stanley has maintained its ‘Overweight’ rating on Zomato with a target price of ₹355, deriving insights from Swiggy’s Q2FY25 results. Swiggy reported steady growth in food delivery and hyper-growth in the quick commerce segment, signaling expanding total addressable markets (TAM) and average order values (AOV). These trends bode well for Zomato, which continues to lead the quick commerce segment through its Blinkit platform.
Morgan Stanley highlights that Blinkit outperformed Swiggy’s Instamart with a 122% YoY growth in gross order value (GOV) compared to Swiggy’s 76%. The brokerage believes that Zomato’s leadership in food delivery and quick commerce, coupled with its ability to innovate, positions it to capitalize on the growing demand in these segments.
With sustained industry tailwinds and a strong competitive edge, Zomato is well-placed to deliver growth and enhance shareholder value in the coming quarters.
