Buy Zomato, target price Rs 310: ICICI Securities

ICICI Securities has buy call on Eternal (earlier Zomato), with a target price of Rs 310. The current market price of Zomato Ltd. is Rs 235.05. Eternal, incorporated in 2010, is a Small Cap company with a market cap of Rs 227072.75 crore, operating in the Services sector.

Eternal's key products/revenue segments include Service Revenue, Royalty Income, Traded Goods for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs ,5657 crore, up 12.69% from last quarter Total Income of Rs 5,020 crore and up 61.31% from last year same quarter Total Income of Rs 3507.00 crore. The company has reported net profit after tax of Rs 59.00 crore in the latest quarter.

The company's top management includes Mr.Kaushik Dutta, Mr.Deepinder Goyal, Mr.Sanjeev Bikhchandani, Ms.Aparna Popat Ved, Ms.Gunjan Tilak Raj Soni, Ms.Namita Gupta, Ms.Sutapa Banerjee. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 965 crore shares outstanding.

Investment Rationale
ICICI Securities re-iterates BUY for Zomato and maintains a three-stage DCF-based target price of Rs 310, assuming 11.5% WACC and 5% terminal growth. The Key risks are slowdown in discretionary spending; and negative externalities disrupting business operations.