CLSA has reiterated its ‘outperform’ rating on Zomato, with a target price of ₹283.90 per share. Zomato continues to be the top pick in the food delivery space, bolstered by its performance over its key competitor, Swiggy, in recent quarters.
The brokerage highlighted Zomato’s gains in several key metrics over Swiggy during FY24 and the first quarter of FY25. These improvements suggest Zomato is successfully capitalizing on market trends and consumer demand, giving it a competitive edge in the food delivery sector.
Additionally, the report noted that Quick Service Restaurants (QSRs) are gradually losing market share to aggregators like Zomato, further strengthening its position in the industry. Despite this, CLSA acknowledged that Swiggy remains a strong competitor and could regain ground once it addresses its current funding gap.
Overall, CLSA’s outlook on Zomato remains positive as the company continues to outpace competitors in terms of operational metrics, setting it up for future growth.
Disclaimer: Stock market investments are subject to market risks. The information provided in this article is for informational purposes only and should not be construed as investment advice or a recommendation. Readers are advised to seek independent financial advice before making any investment decisions. The author and the publication are not responsible for any investment losses incurred based on the information provided.
