Zomato shares: Zomato’s stock experienced a 6% decline today following the company’s Q4 earnings announcement. In the fourth quarter of FY24, Zomato reported a consolidated net profit of ₹175 crore, a notable turnaround from the ₹188 crore loss recorded in the same period last year. This represents a 27% increase from the ₹138 crore profit posted in the December quarter. Additionally, the company’s revenue from operations in Q4FY24 surged by 73% to ₹3,562 crore. Despite the drop in share price, analysts remain optimistic about Zomato’s prospects, with some even raising their target price for the stock.
Zomato share price and Q4 results for Emkay Global Financial Services
Emkay Global kept its earnings per share (EPS) estimates for FY26 unchanged, but reduced the estimates for FY25 by approximately 20% due to potential slower profitability for Blinkit. Despite this adjustment, the brokerage maintained its ‘Buy’ rating on Zomato shares and set a target price of ₹230 per share.
Zomato Q4 earnings and share price as reported by Nuvama Institutional Equities
Nuvama Institutional Equities assessed Zomato’s valuation using the sum-of-the-parts (SOTP) method, valuing the food delivery segment at $10 billion and Blinkit at $13 billion. They attributed the higher valuation of Blinkit to its rapid growth, which surpassed expectations.
Reaffirming their ‘Buy’ rating on Zomato shares, the brokerage increased the target price to ₹245 per share, up from ₹180 previously.
Nuvama stated, “We foresee the rapid expansion of dark stores to potentially impact margin growth for Blinkit over the next two quarters. However, we anticipate this impact to be outweighed by improved margins in FY26.”
Elara Capital on the Zomato share price and Q4 results
Elara Capital has upheld its ‘Buy’ rating and raised the target price for Zomato shares to ₹280 each, up from ₹250 previously.
Also Read: Eicher Motors Q4 Results
CLSA regarding zomato’s Q4 earnings and stock price
The brokerage retained its ‘buy’ rating on the stock and increased the target price to ₹248 per share.
