Zomato share price declined to the lowest level in nearly six months as its profitability is expected to remain subdued in current and next financial year as Blinkit expands aggressively. In three months to December 2024, the food delivery business's profit was impacted due to Blinkit's rapid expansion plan.
Most brokerages reduced their target price and cut earning estimates as the company is focused on investing on Blinkit's expansion after assessing third quarter results.
Zomato Q3 FY25 Key Highlights (Consolidated, QoQ)
Revenue up 12.6% at Rs 5,045 crore versus Rs 4,799 crore (Bloomberg estimate: Rs 5,382 crore).
Ebitda down 28% at Rs 162 crore versus Rs 226 crore (Bloomberg estimate: Rs 266 crore).
Margin expanded at 3% versus 4.7% (Bloomberg estimate: 4.9%).
Net profit down 66% at Rs 59 crore versus Rs 176 crore (Bloomberg estimate: Rs 230 crore).
Zomato share price plunged 13.33% to Rs 207.80 apiece, the lowest level since July 23, 2024. It pared losses to trade 6.26% down at Rs 224.75 apiece as of 9:30 a.m., as compared to a 0.31% advance in the NSE Nifty 50.
The stock rose 63.18% in 12 months. Total traded volume so far in the day stood at 8.3 times its 30-day average. The relative strength index was at 70.12, which implied the stock was overbought.
Out of 28 analysts tracking the company, 24 maintain a 'buy' rating, one recommends a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 22.9%.
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