
UBS has reiterated its “Buy” rating on Zomato, maintaining a target price of ₹320, indicating a potential upside from the current market price of ₹230.70.
Key Takeaways:
- Decent Q3 Results:
- Zomato’s overall quarterly performance was stable, with notable margin expansion despite a slowdown in food delivery.
- Food Delivery Challenges:
- The slowdown in food delivery growth was surprising, but the company managed to improve profitability margins.
- Quick Commerce Expansion:
- Accelerated rollout of dark stores with a new target of 2,000 stores by December 2025, a year ahead of the previous timeline.
Analyst Outlook:
UBS views the strong execution in margin improvement and quick commerce expansion as positives, supporting its bullish stance on the stock.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult your financial advisor before making investment decisions.