JPMorgan has raised its price target on Zomato to ₹340 from ₹208, projecting a 40% upside from the current price of ₹242 on the NSE as of September 4. The firm remains “Overweight” on Zomato, emphasizing that the company is driving a rapid retail consumer transformation, particularly in its convenience-focused Quick Commerce (QC) business, led by Blinkit.
Zomato is expanding deeper into metro cities after proving the business model in NCR, which now accounts for 50% of Gross Order Value (GOV) and store count. The scaling of this model is expected to enhance monetization opportunities through channel margins and advertising spending.
JPMorgan highlights that with the majority of Blinkit stores crossing positive daily sales thresholds, the incremental store economics should turn more positive on the EBITDA front. This financial performance gives Blinkit the green light to accelerate its scale-up faster than its competitors and even beyond its current targets.
