Zomato’s Stellar Performance in Q3 FY24 Drives Share Price
Surge

Introduction: Zomato, the leading online food delivery platform, witnessed a significant surge in its share price following the release of its impressive Q3 FY24 results. The company reported robust growth in its food delivery business, leading to a substantial increase in revenue and profitability.

Zomato Share Price Hits 52-Week High on Strong Q3 Results: Analysts Raise Target Price, Should You Buy?

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Key Highlights of Q3 FY24 Results:

Net profit surged to ₹138 crore, marking a substantial turnaround from the loss of ₹347 crore in the same period last year, showcasing a remarkable 283% quarter-on-quarter growth.
Revenue from operations reached ₹3,288 crore, reflecting a substantial increase of 69% year-on-year.
The food delivery gross order value (GOV) grew by 25% year-on-year, indicating sustained momentum in the delivery segment.

Analysts’ Assessment and Target Price Revision:

Jefferies, a foreign brokerage firm, hailed Zomato’s Q3FY24 as another strong quarter, emphasizing exceptional performance and smart margin gains in food delivery. It raised adjusted Ebitda estimates and revised the target price to ₹205 per share, maintaining a ‘Buy’ rating.
Emkay Global Financial Services acknowledged Zomato’s impressive execution and growth across segments. It raised its target price to ₹170 per share and retained a ‘Buy’ rating, valuing Zomato’s food delivery business at ₹119 per share on a DCF basis and Blinkit at ₹36 per share at 1x FY26E GOV.

Market Response and Future Outlook:

Zomato shares surged over 4% to hit a fresh 52-week high following the release of the strong Q3 results, indicating investor confidence in the company’s performance and growth prospects.
The company expects consolidated adjusted revenue to maintain a 50%+ year-on-year growth trajectory in the upcoming quarters, with Blinkit contributing significantly to this growth.

Conclusion:

Zomato’s impressive performance in Q3 FY24, driven by robust growth in its food delivery segment, has garnered positive responses from analysts and investors alike. With optimistic outlook and strategic initiatives in place, Zomato appears well-positioned to sustain its growth momentum and drive shareholder value in the foreseeable future.

Table Content:

Metrics	Q3 FY24	Growth/Change
Net Profit (₹ crore)	₹138 crore	283% QoQ
Revenue from Operations (₹ crore)	₹3,288 crore	69% YoY
Food Delivery GOV Growth	25% YoY
Target Price (₹ per share)	₹205 (Jefferies)	Revised upwards from ₹190
	₹170 (Emkay Global)	Revised upwards from ₹140