Buy Zomato, target price Rs 105: JM Financial

JM Financial has buy call on Zomato with a target price of Rs 105. The current market price of Zomato is Rs 65.34. Time period given by analyst is 12 months when Zomato price can reach defined target.
Zomato, incorporated in the year 2010, is a Small Cap company (having a market cap of Rs 55586.34 Crore) operating in Services sector.

Zomato key Products/Revenue Segments include Service Revenue, Other Operating Revenue and Royalty Income for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 2226.50 Crore, up 4.94 % from last quarter Total Income of Rs 2121.60 Crore and up 64.93 % from last year same quarter Total Income of Rs 1350.00 Crore. Company has reported net profit after tax of Rs -187.60 Crore in latest quarter.

The company’s top management includes Mr.Kaushik Dutta, Mr.Deepinder Goyal, Mr.Sanjeev Bikhchandani, Mr.Douglas Lehman Feagin, Ms.Aparna Popat Ved, Mr.Gunjan Tilak Raj Soni, Ms.Namita Gupta, Mr.Sutapa Banerjee. Company has Deloitte Haskins & Sells as its auditors. As on 31-12-2022, the company has a total of 855 Crore shares outstanding.

Investment Rationale
On a positive note, the company has guided for high-single-digit sequential growth for the business in 1QFY24. The brokerage believes continuity in these trends along with management commitment to profitability improvement can lead to significant upside from CMP. Zomato is JM Financial's top pick in the listed Internet space due to its conviction on its long-term growth prospects and the management’s strong execution capabilities.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 31-Dec-2022, while FIIs owned 56.74 per cent, DIIs 7.36 per cent.