Zomato is one of the most popular companies whose main business is food delivery. Zomato’s market share in the business is very high it is nearly 55% which is a huge number. In the last 1 year, the Zomato stock has given a return of approx 225%. For the long term, many analysts and investors are bullish on the stock, you can check the prediction of Zomato’s share price target for 2024, 2025, and 2026.
Most food-delivering companies are making losses in the business but as you know Zomato is one of those companies of the business who just started making some profit from the business. As a result, the stock of the Zomato is going up rapidly.
In the June 2023 Quarter, the Zomato Limited compnay showed a profit of Rs. 2.00 Crore and from this time the Zomato stock started going up rapidly. Now, in the Sep 2023 Quarter, the company again showed a profit of Rs. 36.0 Crore which is much higher than its previous quarter. For years no food delivery companies showed a profit but As Zomato did its stock started going up.
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About Zomato
Zomato is an Indian multinational company. The company was founded in 2010 and as of now its managing director is Mr. Deepinder Goyal.
The company’s main business is food delivery and restaurant services. In India, Zomato has approx 55% market share in the industry. Not only India the company is also working in more than 25+ countries and 1000+ cities.
In this business, when the customer base increases then the company will start naming profit. As of now most of the company booking loss and most probably they will get profit in future. Like the Zomato company booked a profit in the Q1 FY2024 for the first time.
Company Fundamentals
From the fundamentals, you can know about the company in detail like the strength of the company, the right value of the company, the position of the company among all companies of the same sector, financial statements, growth of the company, and many more.
Most probably you are a retail investor, it is highly recommended to do a fundamental analysis by yourself of the stocks in which you are investing or already invested. In case, you know how to do a fundamental analysis of companies you can learn it from the Internet.
Note: The fundamentals of the Zomato company were last updated on 08 Feb 2024. Check the latest information on any broker website or screener.
Profit Growth (Last 5 Years)
| Year | Profit (In Crores) |
|---|---|
| March 2019 | -₹1,010 |
| March 2020 | -₹2,386 |
| March 2021 | -₹816 |
| March 2022 | -₹1,223 |
| March 2023 | -₹971 |
Quarterly Results (Last 5 Quarters)
| Quarter | Profit (In Crores) |
|---|---|
| Sep 2022 | -₹251 |
| Dec 2022 | -₹347 |
| Mar 2023 | -₹188 |
| Jun 2023 | ₹2 |
| Sep 2023 | ₹36 |
Company Essentials
| Market Cap | ₹1,22,475Cr | ROE | -2.52% |
| P/E Ratio (TTM) | 0.00 | EPS (TTM) | -0.57 |
| P/B Ratio | 6.20 | Div Yield | 0.00% |
| Industry P/E | 108.98 | Book Value | 22.69 |
| Debt to Equity | 0.03 | Face Value | 1 |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 54.88% |
| DII | 15.47% |
| Public | 29.65% |
| Promoters | 0.0% |
| Other Holders | 0.0% |
Key Points
- Zomato is the #1 food delivery platform in India.
- In the food-delivery business, Zomato has approx 55% market share in India.
- From the last 2 quarters, the Zomato Limited compnay started making profits.
- On the Zomato limited there is Rs. 0 Cr. DEBT and the company has cash of Rs. 398.30 Crore.
- In just 2 to 3 years the sales of Zomato Limited almost grew by 500%.
Quarterly Results
In India Zomato is the first food-delivery compnay that started making profits from the business. For the first time, Zomato has shown a profit of Rs. 2 Crore in June 2023. In the Sep 2023 quarter, the net profit of the company was near Rs. 36.00 Crore. Most probably the upcoming quarters will be profitable too for the company.
Thumb Rules for Investing
Investment rules play a major role in the life of an Investor to invest in the right stock, book profit at the right time, buy at the right time, sell at the right time, and many more… In a few words, it plays a major role in reducing risk in the stock market and maximizing profit.
These rules apply to the maximum sectors’ stocks. If you are new in the market or don’t have enough knowledge you should follow the rules to make your self psychology strong.
Rule #1: Do not invest all the money in one sector’s stocks. No matter what is the future of the sector. In case you invested all the money in one sector, if the sector faces any issue, you’ll be in a huge loss.
Rule #2: Invest a maximum of 5% – 6% of the total money in any stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 6000 in any stock. This rule is applicable when you are retail, and can not track all the stocks.
Rule #3: Invest in a maximum of 2-3 stocks of a sector. When any sector faces problems then other sectors’ stock will save you from huge losses.
Rule #4: Invest in stock when the stock the available at a 10% low from its 52-week high. Some people invest in stocks at high, and as a result, they do not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 7 years to get very high returns. Keep booking the profit from time to time.
Rule #6: Keep averaging the stock if everything is right in the company and the stock is available at a high discount due to any market crash.
Rule #7: Before Investing in any stock make sure you check its fundamental and related news. It will help you to stay away from the stock which can give you huge losses.
Zomato Share Price Target
No doubt, in the last few years there were huge positive and negative views about the Food Delivery business. In this view, some analysis was negative and some were positive that the food-delivery business can be profitable or not.
After a struggle of a few years the year 2023 was a great year for the Zomato compnay as the compnay started marking profits from the year. As a result, the stock prices of the Zomato Limited compnay are continuously going up and most probably in 2024, it will create a new all-time high too.
The all-time high of the Zomato stock is Rs. Rs. 169 and from the all-time high the stock is currently trading at Rs. 144.10 as of 08 Feb 2024. In short, it is down by approx 15% from its all-time high.
Disclaimer: We are not SEBI registered and the below-given share target price by brokerage firms, analysts (share price forecast), and analysis by us is only for educational purposes, not any buying or selling recommendation. We will be not responsible for any profit and loss.
Zomato share price target 2024
The Zomato stock has already given a massive return of 225% in the last 1 year but still analysts are very bullish on the stock. From the technical analysis viewpoint, the stock is also bullish, and most probably it will give a massive profit in the year 2024 too.
The next move of the Zomato stock will be decided by the quarterly results of Dec 2023 quarter. As the people and analysts are expecting that in the Dec quarter, the Zomatio compnay will show again good profits too.
In case. if Zomato fails, then we can see a major correction or down trade in the stock for the short term. So, if you want to plan any trade for the short term, then you should wait for a price action in the chart or quarterly result of the Zomato Limited compnay.
Zomato Share Price Target 2025 and 2026
For the long term like 2 to 3 years, there are very high chance you’ll be in a huge return from the stock if you invest in the stock based on technical analysis.
Many other companies are working in the same food delivery business but these companies have less market share in the business and many companies are not listed in the stock market too like Swiggy. So, there is one good option to invest money in stocks or companies that are involved in the food delivery business.
In the upcoming 3 to 4 years you can see a return of 100% to 150% in the stock very easily. But in this period, you have to manage and average the stock to make extra returns too.
FAQs
Yes, Zomato is a good stock to buy.
As of now, all the companies in the industry in India facing a lot of problems and they report loss in most quarters. This is happening because of a lot of expenses. Once they have a large number of customers they will start making a profit by changing and taking some new steps.
Yes, it has a bright future. The only problem is as of now they don’t have a lot of regular customers and as a result, they are facing loss. In Q1 FY2024 Zomato reported its first profit.
If it keeps getting profits and the fundamental improves with time. Most probably the stock can create a new all-time high. According to the current analysis, the stock can go up to Rs. 200 – Rs. 220 before 2025.
Final Words: Food delivery and restaurant service a good businesses. Zomato has a 55% market share in the industry. In a few words, it is a top company for food delivery in India. Not only India the Zomato is working in more than 1000+ cities in the world. As maximum food companies taking losses for now in the hope they will get profit in the future. The Zomato share price target depends on their profit for now.