HSBC has maintained its buy rating on Zomato, raising its target price from Rs 265 to Rs 330, signaling a potential 24% upside from the current market price (CMP) of Rs 265.00. HSBC noted that the competitive intensity in the food delivery (FD) segment is stabilizing, although Zomato still has room to enhance its take rates, which could boost profitability.
In the quick commerce (QC) space, Swiggy is reportedly struggling to keep up with Blinkit, Zomato’s QC arm, although both companies have significant opportunities to improve take rates and margins.
HSBC has also raised its estimates for Zomato’s quick commerce division, considering the company’s plans for expansion in its “going out” business, which could positively impact its overall growth trajectory.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consider consulting a financial advisor before making any investment decisions.
