Buy Zomato, target price Rs 310: ICICI Securities

ICICI Securities has reaffirmed its buy recommendation for Zomato with a target price revised to Rs 310. Zomato reported a consolidated total income of Rs 5,657 crore for Q3 2024, showing significant growth from the previous quarter. ICICI's DCF-based valuation remains optimistic despite potential risks like reduced discretionary spending. Zomato's market cap stands at Rs 194,647.57 crore.

ICICI Securities has reiterated its buy call on Zomato with a target price of Rs 310. The current market price of Zomato is Rs 200.85.

Zomato, incorporated in 2010, is a Small Cap company with a market cap of Rs 194647.57 crore, operating in the Services sector. Zomato's key products/revenue segments include service Revenue, Royalty Income, Traded Goods for the year ending 31-Mar-2024.

Financials For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 5,657 crore, up 12.69% from last quarter Total Income of Rs 5020 crore and up 61.31% from last year same quarter Total Income of Rs 3507.

00 crore. The company has reported net profit after tax of Rs 59.00 Crore in latest quarter.

The company?s top management includes Mr.Kaushik Dutta, Mr.Deepinder Goyal, Mr.

Sanjeev Bikhchandani, Ms.Aparna Popat Ved, Ms.Gunjan Tilak Raj Soni, Ms.

Namita Gupta, Ms.Sutapa Banerjee. Company has Deloitte Haskins & Sells as its auditors.

As on 31-12-2024, the company has a total of 965 Crore shares outstanding. Investment RationaleICICI Securities has re-iterated a BUY for Zomato and maintain a three-stage DCF-based target price of Rs 310, assuming 11.5% WACC and 5% terminal growth.

Risks include a slowdown in discretionary spending and negative externalities disrupting business operations..