Kotak Institutional Equities has commenced coverage on newly listed Zomato Limited with a target price of Buy Rating and Buy Rating.
“Zomato’s leadership position in the underpaid food-delivery space will drive a healthy revenue CAGR of 36% in FY2021-30. “Zomato will be left with the bulk of its current $2 billion cash balance by FY2025, Kotak Institutional Equities said in a note,” Kotak Institutional Equities said in a note. Which can enable the entry of the company and further value creation.” Based on fair value of Zomato shares ₹175.
Zomato shares closed today ₹141.40. Zomato’s IPO received a great response from investors and compared to the IPO issue. ₹76, the value of the shares has nearly doubled in less than two months.
Zomato recently completed the acquisition of 9.16% stake in Grofers ₹518 crores.
The highlights of Kotak’s report on Zomato shares are as follows:
“Increasing income levels, evolving tastes and preferences will drive greater demand for food delivery in the future. This will be manifested in the strong growth in ordering frequencies as well as users across food delivery platforms. Thus we model a healthy 55% revenue CAGR for Zomato in FY 2021-24 and 36% revenue CAGR in FY 2021-30.”
“Zomato will also continue to explore nearby businesses that can further drive these revenue growth rates.”
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.