Zomato Ltd Stock Analysis

BSE: 543320 | NSE: ZOMATO | e-Commerce | Large Cap

BSE Share Price 28-Sep-2023 18:02
99.93 -0.15 (-0.15%)

DeciZen - Make an Informed Decision on Zomato

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Zomato Price Chart

P/E Ratio (SA):
161.93
Market Cap:
85,984.2 Cr.
52-wk low:
44.4
52-wk high:
105
Bole Toh?

1. Is Zomato Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Zomato Ltd is a below average quality company.

2. Is Zomato Ltd undervalued or overvalued?

The key valuation ratios of Zomato Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Zomato Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Zomato Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Zomato:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Zomato Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -26.8%-18.2%-35.7%-89.2%-6.9%-84.6%-131.9%-15.4%-10.5%0.7%-
Value Creation Index -3.4-2.6-4.2-8.9-1.6-8.5-12.7-2.4-1.9-0.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 30.678.81342453711,1632,3361,7143,6114,7074,996
YoY Gr. Rt. %-157.7%70%82.9%51.4%213.4%100.9%-26.6%110.7%30.4%-
Adj EPS -0.2-0.4-1.4-2.8-0.4-8.1-10.70-1.70.10.6
YoY Gr. Rt. %-NANANANANANANANANA-
BVPS (₹) 1.22.52.61.15.810.511,010.1020.523.323
Adj Net Profit -38.9-82.1-275-566-79.5-1,831-2,425-703-1,316116533
Cash Flow from Ops. -36.1-60.2-66.2-77.8-61.7-1,719-2,074-281-509225-
Debt/CF from Ops. 00-4.60000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 75%66.2%26.3%30.4%
Adj EPS NANANANA
BVPS39.2%32%-87.2%14%
Share Price - - - 63.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on Equity % -26.9-18.3-45-120.2-8.8-86.5-132.3-15.5-10.50.62.7
Op. Profit Mgn % -132.3-104.1-117.2-26.2-13.9-184.1-94.7-19.8-45.3-12-0.6
Net Profit Mgn % -127.2-104.1-204.9-230.9-21.4-157.5-103.8-41-36.52.510.7
Debt to Equity 000.60000000-
Working Cap Days 1696687101106113934936866590
Cash Conv. Cycle 896-13-26-12-12-26-10-200

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 2.70%

Sales growth is growing at healthy rate in last 3 years 26.30%

Sales growth is not so good in last 4 quarters at -6.09%

Latest Financials - Zomato Ltd.

Standalone Consolidated
TTM EPS (₹) 0.6 -0.9
TTM Sales (₹ Cr.) 4,996 8,082
BVPS (₹.) 23 21.1
Reserves (₹ Cr.) 18,953 17,332
P/BV 4.34 4.72
PE 161.93 0.00
From the Market
52 Week Low / High (₹) 44.35 / 105.00
All Time Low / High (₹) 40.55 / 169.10
Market Cap (₹ Cr.) 85,984
Equity (₹ Cr.) 860.4
Face Value (₹) 1
Industry PE 161.8

Management X-Ray of Zomato :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Zomato

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Zomato Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Zomato on 28-Sep-2023 18:02 is : 99.93.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Sep-2023 18:02 the market cap of Zomato stood at ₹ 85,984.2.
The latest PE ratio of Zomato as of 28-Sep-2023 18:02 is 161.9.
The latest PB ratio of Zomato as of 28-Sep-2023 18:02 is 4.34
The 52-week high of Zomato is ₹ 105.0 and the 52-week low is ₹ 44.35.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Zomato is ₹ 4,996 ( Cr.) .

About Zomato Ltd

Incorporated in 2010, Zomato is one of the leading online Food Service platforms in terms of the value of food sold as of Dec 31, 2020. Zomato's technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs. Customers use its platform to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. It also operate a one-stop procurement solution, Hyperpure, which supplies high quality ingredients to restaurant partners. It also provides its delivery partners with transparent and flexible earning opportunities. The company’s business is built around the core idea that over time, people in India are going out to eat at restaurants more than they cook at home.

Business area of the company

The company has two core business-to-customer (B2C) offerings - (i) Food delivery and (ii) Dining-out, in addition to its business-to-business (B2B) offering (iii) Hyperpure. Another important part of its business is (iv) Zomato Pro, its customer loyalty program which encompasses both food delivery and dining-out. Each of its B2C as well as B2B offerings help increase the value of its platform for its customers, enabling it to further attract new customers and to deepen engagement with existing customers. Each of its offerings also helps improve Assortment, Affordability, Accessibility and Quality (AAAQ) of restaurant food for its customers thereby helping grow the restaurant industry.

Awards and accreditations

  • 2018: Awarded Technology Fast 50 Winner by Deloitte Touche Tohmatsu India LLP.
  • 2018: INCA Technology/App of the Year by National Restaurants Association of India.
  • 2018: Ranked amongst India’s Most Attractive Brands by TRA Research.
  • 2018: Young Turk of the Year at India Business Leader Awards 2018.
  • 2019: Ranked amongst India’s Most Consumer Focused Brands by TRA Research.
  • 2019: Ranked amongst Top Companies: Where India Wants to Work by LinkedIn.
  • 2020: Ranked amongst Top 10 Overall Publishers by Downloads by AppAnnie.
  • 2020: Best brand voice by Twitter.
  • 2020: Ranked amongst India’s most desired brands by TRA Research.
  • 2021: High-Growth Companies Asia Pacific 2021 by NIKKEI Asia and Financial Times.

Major events

  • 2011: First institutional fund raise by the company.
  • 2015: Launch of food delivery in India.
  • 2016: Launch of table reservation.
  • 2017: Launch of customer membership program (currently, ‘Zomato Pro’).
  • 2018: Added capability of hyperlocal delivery platform by acquisition of Carthero Technologies.
  • 2019: Launch of Hyperpure, a B2B supplies business for restaurant partners.
  • 2020: Expansion of food delivery business across 500 cities in India.
  • 2020: Acquisition of ‘Uber Eats India Assets’ of ‘Uber Eats India Business’ from Uber India.
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