Eternal Ltd. share price target

We hereby initiate our coverage on this stock and assign a BUY rating on the stock with a target price of Rs. 170 based on 25x FY23E P/Sales. Market leader in the food aggregator space in India As a first mover into online food delivery, Zomato has been at the forefront of the race and has managed to maintain a leadership position in the domestic market. Backed by analytics driven and user-friendly technology and operating primarily through its app, the company has witnessed robust engagement with its customer base as well as its network of partner restaurants, which has thereby translated to a steady rise in orders...

Zomato Limited IPO Note Issue Open: July 14 July 16 2021 Price Band: Rs. 72 76 *Issue Size: 1,233,552,632 eq shares (Fresh Issue of 9000 cr + Offer for sale of 375 cr) Issue Size: Rs.9375.0 cr Reservation for: QIB atleast 75% eq sh Non Institutional Upto 15% eq sh Retail Upto 10% eq sh

Zomato is a technology based food delivery company which started its journey as a content and discovery platform for restaurants. 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 order food delivery, book a table and make payments while dining-out at restaurants. On the contrary, Zomato also provide restaurant partners with industry-specific marketing tools...

Zomato, one of the top 5 unicorns of India, is a platform company which has successfully solved for convenience by connecting restaurants with customers. By using technology and a fleet of delivery partners, Zomato has created a capital light compounding machine which creates an eco-system wherein the best of the restaurants will make more money (as Zomato brings more customers driven by quality reviews/ratings) while customers enjoy convenience along-with right-quality product and delivery partners enjoy part-time income. Platform companies have ruled wealth creation globally. We believe, Zomato, as a platform and being category leader, will continue to drive...

Public issue of 130,20,83,333 Equity shares of Face Total Public value Re. 1 each, (Comprising of fresh issue of Employee Reservation 125,00,00,000 Equity Shares* (Rs. 9000 cr.) and Offer...

Zomato Limited is one of the leading Food Services platforms in India. Company was incorporated as DC Foodiebay Online Services Private Limited dated January 18, 2010, Delhi. Based on special resolution passed by Shareholders on April 3, 2020, the name of the Company was changed to Zomato Private Limited, Its technology platform connects customers, restaurant

Rs20.5/ order (-30.5 in FY20). We believe that the business offers huge scalability given rising penetration of smart phones and just 8-10% consumer penetration than China/USA, a level India would reach in next 5-7 years. We believe that the business has high gross margins of 90%+ and operating leverage from Availability Fee, Advertising, IT Spends and Personnel cost will...

Rs20.5/ order (-30.5 in FY20). We believe that the business offers huge scalability given rising penetration of smart phones and just 8-10% consumer penetration than China/USA, a level India would reach in next 5-7 years. We believe that the business has high gross margins of 90%+ and operating leverage from Availability Fee, Advertising, IT Spends and Personnel cost will...

Zomato is one of the leading food service platforms in India in terms of value of food sold as of March 31, 2021. It was initially launched as DC Foodiebay Online Services Pvt Ltd in January 2010. During FY21, 3.21 crore average monthly active users visited the platform. It is currently present in 525 cities in India with 389,932 active restaurant listings. It also has footprints across 23 countries outside India. Over the past 12 years, it has grown from food discovery platform to a food service platform with four major segments 1) Food delivery (B2C) - The company is a leader as per RedSeer, 2) Dining out...

IPO NOTE