The 2024 outstanding performer is currently being scrutinized for investors to re -evaluate their evaluation, growth strategy, and sustainability of revenue. Pain is particularly remarkable for those who bought it during the peak.
Changes in emotions have relapsed concerns about the abilities of companies that maintain active growth orbitals. Is this a mere short -term modification, or is there a deeper problem that can hinder long -term performance in the Zomato strategy?
Despite the recent struggles, ZOMATO is focusing on the expansion plan. The company is working on the expansion of the main segments, especially food delivery and the restaurant’s supply department, HyperPure, which has contributed significantly to this operating revenue.
In December quarter, Zomato’s revenue increased by 64 % year -on -year, reaching 5,405 rupees due to strong growth in both excessive companies and flashing businesses. BLINKIT, which handles quick commerce delivery, is continuing to expand, and profits from BLINKIT’s business have increased 117 % year -on -year (YOY).
Read again | Budget and stock market: After D-day, why is the highest rally?
Blinking issues: intensifying competition and cash burning
BLINKIT, a quick commerce arm of ZOMATO, is facing the task. With the intensification of the rapidly growing quick commerce space in India, BLINKIT had to increase and invest a lot to the opening of warehouses and new stores. Loss of Zomato’s overall profit.
Deepinder Goyal, the founder and CEO of ZOMATO, explained that the loss of the Quick-Commerce segment was mainly due to the growth investment of the company.
However, ZOMATO is working on a steady expansion that is progressing steadily to achieve 2,000 dark stores goals by December 2025.
Hypera and food delivery
Spinning is struggling with profitability, but other segments such as ultra -purity and food supply continue to grow. Hyperpure, a Zomato restaurant supply business, has doubled the profit to 1,671 rupees, but is the basis of Zomato’s business.
Food delivery has grown from 20 % of the previous year, and business continues to shift from rapid expansion to profitability. ZOMATO’s consolidated EBITDA increased to 285 chrols year -on -year in the third quarter of FY2015, reflecting the optimization of platform fees, cost efficiency, and great improvements in logistics.
Zomato’s strategic movement
ZOMATO has introduced new services to go ahead in a more competitive market. These innovation aims to diversify revenue sources and enhance customer convenience.
Quick Restaurant Delivery: ZOMATO uses carefully selected restaurants to distribute menu items within 15 minutes using curated menus and dedicated delivery fleet. This service is currently available in some cities and is expected to be more scaled.
Bistro by ZOMATO: This new venture for companies provides quick snacks, drinks and meals, and fills the gaps that were traditionally occupied by vending machines and local food vendors.
Both of these services have the willingness to adapt to Zomato and the willingness to meet the needs of evolving customers. This can support its long -term growth strategy.
Also read: Today’s Q3 results: Vedanta, Nestle announces profits on Friday
What the analyst suggests
Despite Zomato’s continuous investment, analysts remain in their future. Some people see the possibilities, but others have expressed concerns about their high reputation and intensification competition.
Global Broker Macquarie has reduced ZOMATO stocks into “under performance” at 130 rupees per share.
Securities companies have pointed out the unfortunate profits of December quarters due to the loss of Blinkit and the increase in employees. They also emphasized the risk of the ability to achieve Blinkit’s profitability for fierce competition and high marketing spending. Maccollie’s report warned of the risk of Zomati’s ambitious margin expansion in the Quick Commerce business.
AnURAG SINGH, the founder and management partner of Ansid Capital, calls for Zomato’s aggressive story. In the tweet, he emphasized the risk of purchasing in the company’s “story” without focusing on the basics. Shin has criticized Zomato that he has focused on prompt commercial transactions and blinking as a way of exit for private equity, and urged investors to reconsider their approach to shares.
“Buying a story instead of numbers doesn’t make money for you,” says Shin, despite the promises of food delivery and unlimited possibilities for other ventures, Zomato strategies are many people. He pointed out that it may not provide long -term returns.
On the other hand, Morgan Stanley remains bullish against Zomat, maintains the “overweight” rating, and raises the target price from £ 278 to £ 355. Morgan Stanley believes that ZOMATO has a strong possibility of customer recruitment and growth, and is suitable for maintaining market leadership in both food delivery and prompt commercial transactions.
They believe Zomato’s current price underestimates the possibility of Blinkit, and hopes that it will be an important propulsion for future profits.
(Disclaimer: Recommendations, suggestions, opinions, and opinions given by experts are unique. These do not express the views of the economy era)
