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Synopsis : HSBC forecasts Blinkit's (Zomato's subsidiary) GMV to almost double by FY24, setting a Zomato target of Rs 215, anticipating robust growth.
Zomato's stock rose by 4.54% to reach a new peak of Rs 197.80 on the BSE. Motilal Oswal Securities has a 'Buy' rating with a target price of Rs 220, while Kotak Institutional Equities values it at Rs 210.
Zomato Ltd shares surged by 5% on Monday following reports of a 25% increase in its platform fee to Rs 5 per order. Initially set at Rs 2 last August, it was raised to Rs 3 to boost margins and profitability. January saw another hike to Rs 4 due to high New Year's Eve orders. The latest increase propelled Zomato shares to a new high of Rs 197.80 on the BSE. Motilal Oswal Securities maintains a 'Buy' rating with a target of Rs 220, while Kotak Institutional Equities values the stock at Rs 210. UBS, citing underappreciated growth and margin potential, issued a 'Buy' rating with a PT of Rs 250 on April 12.
In a recent update, HSBC predicts Blinkit's GMV, a Zomato subsidiary, to nearly double by FY24, setting a target of Rs 215 for Zomato. The brokerage anticipates heightened order and AoV growth, expressing optimism for Blinkit's future performance, with estimated order and GOV CAGRs of approximately 28% and 30% respectively over FY24-37. Zomato currently handles around 85-90 crore orders annually, with a reported 30% year-on-year increase in adjusted revenue in the December quarter.
