Stock To Buy: CLSA Sees Potential 46.59% Return In E-Retail Stock, TP Rs 227

CLSA has upgraded target price of leading e-retail/e-commerce industry company Zomato shares with target price of Rs 227 apiece. Last trading price of Zomato shares on BSE is Rs 154.85 apiece with intraday gain of 1.74% on BSE.

If you buy Zomato shares now at the last trading price of Rs 154.85 apiece, you can fetch potential return of 46.59%. Zomato shares rallied 67% in last 6-months and gained 208% in last 1-year. CLSA feels that Zomato is a small company but an progressively vital part of the profit pool. It says that the Q3 results show a path to stable profitability. Check details below:

Zomato Stock Performance & Return: The 52-week high price of Zomato shares on BSE is Rs 147.45 apiece and 52-week low price is Rs 49.00 apiece, respectively. The company has a market capitalisation of Rs 1,25,437.19 crore. Zomato shares surged 8% in last 1-month and rallied 165% in last 1-year. In last 2-years, Zomato stock soared 87%. The company has a market capitalisation of Rs 1,36,574.35 crore.

Zomato Q3 Results: The company declared its net profit soared to Rs 138 crore for the December 2023 quarter as compared to the profit of Rs 36 crore in September and the loss of Rs 367 crore in the year-ago quarter. Zomato's revenue from operations for the third quarter witnessed a jump of 69% year-on-year (YoY) to Rs 3,288 crore. Consolidated adjusted EBITDA stayed in the positive territory for third quarter in a row to Rs 125 crore. Zomato's gross order value or GOV surged 27% YoY for the December 2023 quarter.

GOV across our B2C businesses grew 47% YoY (13% QoQ) to INR 12,886 crore. On an annualised basis, we have now crossed INR 50,000 crore of GOV in our B2C businesses. Food delivery GOV grew 27% YoY (6.3% QoQ), quick commerce GOV grew 103% YoY (28% QoQ) and Going-out GOV grew 154% YoY (26% QoQ), said Zomato CEO Deepinder Goyal said.

Consolidated Adjusted Revenue grew 53% YoY (12% QoQ) to INR 3,609 crore. On the profitability front, consolidated Adjusted EBITDA was positive for the third consecutive quarter at INR 125 crore and improved by INR 390 crore as compared to the same quarter last year, added Deepinder Goyal.

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