Buy Zomato, target price Rs 115: JM Financial

JM Financial has buy call on Zomato with a target price of Rs 115. The current market price of Zomato Ltd. is Rs 65.95.
Time period given by analyst is one year when Zomato Ltd. price can reach defined target.

Zomato Ltd., incorporated in the year 2010, is a Small Cap company (having a market cap of Rs 52860.03 Crore) operating in Services sector.


Zomato Ltd. key Products/Revenue Segments include Service Revenue, Other Operating Revenue and Royalty Income for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1350.00 Crore, up 7.17 % from last quarter Total Income of Rs 1259.70 Crore and up 79.81 % from last year same quarter Total Income of Rs 750.80 Crore. Company reported net profit after tax of Rs -359.90 Crore in latest quarter.

Investment Rationale
The brokerage believes Zomato is well-placed to gain from robust industry tailwinds for hyperlocal delivery services. However, the volatile market environment, relatively cheap valuations of global peers, investor focus on profitable names and the lock-in expiry for the company's pre-IPO investors in Jul '22, may limit near-term upside for the stock

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 10.44 per cent, DIIs 3.06 per cent.