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Motilal Oswal Report
Zomato Ltd. delivered another good quarter, with Q3 FY24 revenue of Rs 32.8 billion, up 15% QoQ/69% YoY, ahead of our estimate of +58% YoY. The growth was fueled by Blinkit, which rose 27% QoQ, while food delivery revenue grew 10% QoQ, driven by a higher take rate (20.1%, +70 basis points QoQ).
This was partially driven by better ad monetisation on the platform. Despite the continued headwinds in the food industry, delivery gross order value grew 6.3% QoQ (including a 100 bp adverse impact from lower delivery charges).
We remain positive on the long-term growth opportunity for Zomato and do not expect competition to intensify further despite the entry of ONDC in the space. Our discounted cash flow based valuation of Rs 180 suggests an 18% upside from the current market price.
We reiterate our 'Buy' rating on the stock.
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