- Zomato‘s net income for the third quarter was 590 million rupees, which is a 57% drop compared to the previous year and far below the estimated 2.3 billion rupees.
- The company’s total revenue rose by 64% year-on-year to 54.1 billion rupees, slightly surpassing the estimated 53.82 billion rupees.
- Food delivery revenue increased by 22% from the previous year to 20.7 billion rupees, but fell short of the projected 21.35 billion rupees.
- Revenue from Hyperpure, Zomato‘s restaurant supply business, jumped by 94% to 16.7 billion rupees, exceeding the expected 15.76 billion rupees.
- The Quick Commerce division saw significant growth, with revenue reaching 14 billion rupees, up from 6.44 billion rupees year-on-year, and surpassing the estimate of 13.92 billion rupees.
- Total costs for the quarter were 55.3 billion rupees, representing a 64% increase year-on-year.
- Employee benefits expenses amounted to 6.89 billion rupees, increasing by 63% from the previous year and above the estimated 6.28 billion rupees.
- Following the earnings report, Zomato shares fell by as much as 2.2%.
- Analyst ratings include 24 buys, 1 hold, and 3 sells.
Zomato on Smartkarma
On Smartkarma, independent analysts like Brian Freitas and Janaghan Jeyakumar, CFA, are providing insightful coverage of Zomato, a prominent company in the Indian stock market. Brian Freitas discusses the NIFTY200 Momentum30 Index Rebalance, noting 38 changes with a significant turnover of US$857m. He highlights the continued outperformance of added stocks, suggesting potential upside for Zomato by year-end.
In a separate report, Janaghan Jeyakumar, CFA, focuses on Zomato‘s positive outlook, emphasizing its inclusion in index rebalances like the NSE F&O segment changes. He anticipates index inflows for Zomato during rebalance events, highlighting Zomato‘s potential as a big winner alongside Jio Financial Services in the evolving market landscape. These analyses contribute valuable insights for investors following Zomato‘s journey in the stock market.
A look at Zomato Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Zomato Limited shows a promising long-term outlook based on its overall factors. With a strong Growth score of 5, Zomato is positioned for significant expansion in the future. The company also demonstrates solid Resilience and Momentum scores of 4, indicating a robust ability to weather challenges and maintain positive market momentum.
Although Zomato scores lower in the Value and Dividend categories with scores of 2 and 1, respectively, its exceptional Growth score of 5 bodes well for its long-term success. As an online restaurant guide and food ordering platform catering to customers globally, Zomato‘s innovative approach and strong growth potential make it a company to watch in the competitive food-tech industry.
Summary of Zomato: Zomato Limited is an online restaurant guide and food ordering platform that connects customers, restaurant partners, and delivery partners worldwide. The platform offers various services such as restaurant discovery, customer reviews, food delivery, table booking, and payment options.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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