Macquarie has retained its underperform rating on Zomato, while raising the target price from ₹100 to ₹130, suggesting a potential downside of 50% from the current market price (CMP) of ₹258.00. The brokerage notes that Zomato’s rapid growth is met with intense competition, posing challenges for sustained profitability.
Macquarie emphasizes the need to revisit Zomato’s fundamental growth and unit economics, particularly for its Blinkit Quick Commerce and Zomato Food Delivery businesses. Additionally, Macquarie has cut its earnings estimates and points to potential downside risks for consensus projections. The target price hike is based on a revised, lower discount rate assumption.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.
