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Dolat Capital Report
Zomato Ltd. reported revenue growth of 17.5% QoQ (our estimate: 6.6%), at Rs 24.2 billion. Food Delivery Biz. topline growth remained robust, growing 17.1% QoQ, Hyper pure and Quick Commerce grew 29%/5.8% QoQ respectively.
For food delivery, gross order value up 11.4% QoQ, while monthly transacting user increased by 5.4%, leading to adjusted revenue of Rs. 17.4 billion, up 13.9% QoQ.
Zomato expect it to grow overall revenues by 40%+ for next couple of years while expect 60% plus gross order value growth for Blinkit with continued improved economics.
Ebitda margin loss narrowed significantly to 2% (our estimate: -5.7%) from -11% in Q4. Beat was led by strong execution, Operating leverage and improved efficiencies. Now expects Blinkit to turn adjusted Ebitda neutral over NTM.
Robust performance and commentary in Q1 has led to significant uptick in our forecasts but nevertheless we continue to mark the growth way below guided rate given past volatility, and would rather wait to see current traction sustaining.
Maintain our 'Sell' rating with discounted cash flow based target price of Rs 65.
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