HSBC maintains ‘Buy’ on Zomato, cuts target price to Rs 315

HSBC has reiterated its ‘Buy’ rating on Zomato while trimming the target price to ₹315 from the earlier ₹330. This suggests a potential upside of approximately 46.3% from the current market price of ₹215.40.

The brokerage noted that Zomato’s Q3 performance showed deterioration in quick commerce profitability, but the company managed to maintain its market share, resulting in robust growth. Food delivery profitability continued to improve, though HSBC foresees growth in this segment moderating back to mid-teens.

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HSBC emphasized Zomato’s strong presence in food delivery and quick commerce, viewing the company as a potential long-term winner in these spaces despite near-term challenges.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.

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