Goldman Sachs has reaffirmed its ‘Buy’ rating on Zomato, setting a target price of Rs 330, driven by the company’s robust outperformance in the quick commerce segment compared to Swiggy. In Q3FY25, Zomato reported a 27% quarter-on-quarter (QoQ) growth in gross order value (GOV) for its quick commerce business, substantially higher than Swiggy’s 16% QoQ growth. This rapid growth was achieved while maintaining tighter cost discipline compared to competitors.
Zomato’s advertising and marketing expenses rose at half the rate of Swiggy’s in Q3, demonstrating better cost control. Moreover, Swiggy’s direct cost per order surged by 26% QoQ, while Zomato kept this increase at just 7%, despite adding more than double the number of stores compared to Swiggy. Goldman Sachs emphasized that this combination of aggressive growth and cost efficiency positions Zomato well in the highly competitive quick commerce space, making it a preferred pick in the sector.
