Zomato Stock Update: UBS maintains ‘Buy,’ sets Rs 320 target amid margin improvement

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:

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  1. Decent Q3 Results:
    • Zomato’s overall quarterly performance was stable, with notable margin expansion despite a slowdown in food delivery.
  2. Food Delivery Challenges:
    • The slowdown in food delivery growth was surprising, but the company managed to improve profitability margins.
  3. 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.