Buy Zomato, target price Rs 67: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Zomato with a target price of Rs 67. The current market price of Zomato is Rs 53.25. The brokerage has also suggested to keep stop loss at Rs 44.

Zomato, incorporated in the year 2010, is a Small Cap company (having a market cap of Rs 44768.38 Crore) operating in Services sector.

Zomato key Products/Revenue Segments include Service Revenue, Other Operating Revenue and Royalty Income for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1830.80 Crore, up 15.73 % from last quarter Total Income of Rs 1582.00 Crore and up 57.69 % from last year same quarter Total Income of Rs 1161.00 Crore. Company has reported net profit after tax of Rs -250.80 Crore in latest quarter.

The company’s top management includes Mr.Kaushik Dutta, Mr.Deepinder Goyal, Mr.Sanjeev Bikhchandani, Mr.Douglas Lehman Feagin, Ms.Aparna Popat Ved, Mr.Gunjan Tilak Raj Soni, Ms.Namita Gupta, Mr.Sutapa Banerjee. Company has Deloitte Haskins & Sells as its auditors. As on 31-12-2022, the company has a total of 855 Crore shares outstanding.

Investment Rationale
The price has surpassed the falling channel on the daily scale with a bullish candle and buying interest is visible at support zone. The momentum indicators have retested the breakout on the daily scale and started a fresh up move.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Dec-2022, while FIIs owned 31.74 per cent, DIIs 7.36 per cent.