Eternal Ltd. share price target

We maintain our BUY rating on the stock.

Zomato reported 3QFY25 revenues of INR54b, up 13% QoQ, in line with our estimate of 14% QoQ growth. Growth was led by Blinkit (GOV up 27% QoQ/120% YoY).

Zomato logged a mixed performance in Q3FY25 – Revenue grew 12.6% QoQ, in line with our estimate, led by the Quick Commerce (QC), Hyperpure, and Going Out. Food Delivery growth was muted, with GOV growing only 2.3% QoQ, largely attributed to broad-based slowdown from mid Nov. Blinkit’s GOV surged 27.2% QoQ, continuing on the strong growth path.

In Q2FY25, Zomato sustained >20% YoY GOV growth in food delivery. Gross take rate declined 20bps QoQ. We believe this was due to higher proportion of ‘zero delivery fee’ orders.

we maintain our BUY rating on the stock.

Swiggy currently lags Zomato on key metrics, but its innovation DNA and possible improvement in execution could unlock massive value

Zomato has announced the acquisition of Paytm’s entertainment ticketing business for a cash consideration of ~Rs20.5bn.

Miniscule impact on overall numbers, but an important step toward capturing a higher wallet share from urban consumers.

Zomato achieved 9.8% QoQ in food delivery, ~3% ahead of I-Sec’s estimates and significantly higher than management’s guidance. More importantly, the commentary around ~30% GOV CAGR in food delivery.

We maintain our BUY rating on the stock.

Zomato delivered another strong quarter as 1QFY25 revenues of INR42.06b grew 18.1% [QoQ, ahead of our estimate of 6.9% QoQ growth.

we initiate coverage on the stock with a BUY rating and value the company on SOTP valuation to arrive at a target price of Rs 280/share, implying an upside of 23% from the CMP.

Blinkit is accelerating its dark store addition trajectory, having achieved adj. EBITDA breakeven in Mar’24. Management guided for doubling store count to 1,000 by FY25 (~300 store pipeline ready).

Zomato posted steady operational results, with revenue ahead of our estimates
whereas the margin miss was on account of higher than expected ESOP costs
(for the Blinkit leadership team).

We interacted with industry participants to get a better understanding of the
Quick Commerce (QC) business. Key takeaways: a) QC companies have found
good product market fit in metros and large cities.

Zomato’s ability to ‘execute’ at scale is well recognised by investors. We believe the company is now gearing up to improve its credentials as an ‘innovator’.