Zomato Share Price Target 2023, 2025, 2026, 2027, 2030 and Prediction
Zomato is one of the leading online food delivery platforms in India, operating in 525 cities across the country. It also offers quick commerce services, where customers can order everyday needs across thousands of products and have them delivered within minutes, and B2B supplies, where it provides high-quality food ingredients and other products to restaurants and other businesses.
In this article, we will look at the Zomato Share Price Target 2023, 2025,2026, 2027, and 2030.
Zomato also operates in 23 other countries across the Middle East, Africa, Europe, and Asia Pacific.
Zomato was founded in 2010 as a restaurant discovery platform and has since evolved into a full-stack food tech company. It went public in July 2023, raising INR 93.75 billion ($1.25 billion) in one of the largest IPOs in India’s history. Zomato’s shares were listed on the NSE and BSE at a premium of 51% over the issue price of INR 76 per share.
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Page Contents
Zomato Share Price Target for Tomorrow, 2023, 2025, 2027 and 2030
| Year | Zomato Share Price Targets (₹) – Worst Case | Zomato Share Price Targets (₹) – Best Case |
|---|---|---|
| 2023 | 96 | 108 |
| 2024 | 132 | 144 |
| 2025 | 156 | 180 |
| 2026 | 192 | 216 |
| 2027 | 228 | 252 |
| 2028 | 276 | 300 |
| 2029 | 324 | 348 |
| 2030 | 360 | 396 |
The Zomato Share Price Target for 2023 is Rs 96, for the year 2024 it is Rs 144, for the year 2025 it is Rs 156 and for the year 2030, it is Rs 360.
Zomarto Share Price Returns
Zomato Financial Performance
Zomato has been growing rapidly in terms of revenue and order volumes, driven by the increasing adoption of online food delivery and quick commerce services in India. According to its latest quarterly results for Q4 FY23, Zomato reported:
- A gross order value (GOV) of INR 86.15 billion ($1.15 billion), up by 60% year-on-year (YoY) and 23% quarter-on-quarter (QoQ).
- A revenue of INR 22.27 billion ($297 million), up by 65% YoY and 27% QoQ.
- An adjusted EBITDA loss of INR 6.96 billion ($93 million), down by 14% YoY and 9% QoQ.
- A net loss of INR 8.16 billion ($109 million), down by 23% YoY and 14% QoQ.
Zomato’s annual performance for FY23 was also impressive, as it reported:
- A GOV of INR 289.77 billion ($3.87 billion), up by 37% YoY.
- A revenue of INR 69.77 billion ($931 million), up by 23% YoY.
- An adjusted EBITDA loss of INR 28.06 billion ($375 million), down by 47% YoY.
- A net loss of INR 35.85 billion ($479 million), down by 42% YoY.
Zomato’s financial performance reflects its strong growth momentum and improving unit economics, as it benefits from economies of scale, operational efficiencies, and increased customer loyalty.
Zomato’s average order value (AOV) increased by 18% YoY to INR 414 in Q4 FY23, while its contribution margin improved by 13 percentage points YoY to -7%.
Zomato’s average monthly transacting customers (MTCs) also increased by 32% YoY to 16.6 million in Q4 FY23.
Zomato’s financial performance for the last 6 years:
| Financial Header | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|---|
| Sales | 466 | 1,313 | 2,605 | 1,994 | 4,192 | 7,079 |
| Expenses | 558 | 3,556 | 4,909 | 2,461 | 6,043 | 8,290 |
| Operating Profit | -92 | -2,243 | -2,305 | -467 | -1,851 | -1,210 |
| OPM % | -20% | -171% | -88% | -23% | -44% | -17% |
| Other Income | 21 | 1,285 | 16 | -200 | 793 | 681 |
| Interest | 6 | 9 | 13 | 10 | 12 | 49 |
| Depreciation | 29 | 43 | 84 | 138 | 150 | 437 |
| Profit before tax | -107 | -1,010 | -2,386 | -815 | -1,220 | -1,015 |
| Tax % | 0% | 0% | 0% | -0% | -0% | 4% |
| Net Profit | -107 | -1,010 | -2,386 | -816 | -1,222 | -971 |
| EPS in Rs | -3,070.18 | -28,574.18 | -70,096.54 | -23,123.76 | -1.54 | -1.14 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% | 0% |
Surprising the street, Zomato announced the result for Q1 Fy 23-23 reported Proft After Tax of Rs 2 Crore for Q1 F23-24. This is the first time ever Zomato has reported a profit in any quarter.
This news is being celebrated widely by the start-up community, as it gives hope to recently listed start-ups like PayTM, Make My Trip, and others.
It remains to be seen whether the profit reported will continue in subsequent quarters or if this was just a one-off.
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Zomato Growth Prospects
Zomato has a huge opportunity to grow its business in India, as the online food delivery and quick commerce markets are still underpenetrated and have strong growth potential.
According to RedSeer Consulting, the online food delivery market in India is expected to grow at a compound annual growth rate (CAGR) of 30% from $4.2 billion in FY21 to $12 billion in FY25, while the quick commerce market is expected to grow at a CAGR of over 100% from $0.5 billion in FY21 to $5 billion in FY25.
Zomato is well-positioned to capture this opportunity, as it has strong brand recognition, a large and loyal customer base, a wide network of restaurant partners and delivery partners, a diversified product portfolio, and a robust technology platform.
Zomato also has a clear vision to become a leading food tech company that offers better food for more people, instant commerce indistinguishable from magic, and makes India malnutrition-free.
Zomato has been investing heavily in expanding its presence, enhancing its offerings, and acquiring strategic assets to achieve its vision. Some of its recent initiatives include:
- Launching Zomato Pro Plus, a premium subscription service that offers unlimited free deliveries and no surge fees for food delivery and quick commerce orders.
- Acquiring Fitso, a fitness app that offers online and offline fitness services such as swimming, running, cycling, and personal training.
- Acquiring Tonguestun, a B2B food tech platform that connects corporate employees with caterers and restaurants for their daily meals.
- Acquiring Uber Eats India, the food delivery business of Uber in India, to strengthen its market share and customer base.
- Partnering with Grofers, an online grocery delivery platform, to offer grocery products on Zomato’s app.
- Partnering with Paytm, a leading digital payments platform, to offer Zomato’s services on Paytm’s app.
Zomato also has plans to enter new segments such as cloud kitchens, nutraceuticals, and online gaming, as well as explore international expansion in the future.
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Zomato Valuation and Target Price
Zomato’s valuation is based on a combination of fundamental and relative analysis. For the fundamental analysis, I use a discounted cash flow (DCF) model to estimate the intrinsic value of Zomato’s shares based on its future cash flows.
For the relative analysis, I use a peer group comparison to estimate the fair value of Zomato’s shares based on its key financial ratios.
Zomato Stock Fundamental Analysis
The DCF model is based on the following assumptions:
- A revenue CAGR of 35% for FY24-FY33, based on Zomato’s historical growth rate and market potential.
- An EBITDA margin of -10% for FY24, improving gradually to 15% by FY33, based on Zomato’s improving unit economics and operational efficiencies.
- A tax rate of 25%, which is the corporate tax rate in India.
- A weighted average cost of capital (WACC) of 12%, is the average cost of equity and debt for Zomato.
- A terminal growth rate of 3%, which is the long-term growth rate of the Indian economy.
Based on these assumptions, the DCF model estimates the intrinsic value of Zomato share price target to be INR 113.6 per share, which implies an upside potential of 36% from the current share price of INR 83.35 per share.
Zomato Stock Relative Analysis
The peer group comparison is based on the following peers:
- Swiggy, Zomato’s closest competitor in India, which is also an online food delivery platform with quick commerce and B2B supply services.
- Meituan is China’s largest online food delivery platform with diversified businesses in travel, entertainment, e-commerce, and mobility.
- Delivery Hero, a global online food delivery platform operating in over 50 countries across Europe, Asia, Latin America, and the Middle East.
- Just Eat Takeaway.com, a leading online food delivery platform in Europe and North America, was formed by the merger of Just Eat and Takeaway.com in 2020.
The peer group comparison is based on the following key financial ratios:
- Price-to-sales (P/S) ratio, which measures the market value of a company relative to its revenue.
- Price-to-book (P/B) ratio, which measures the market value of a company relative to its book value or net worth.
- Enterprise value-to-sales (EV/S) ratio, which measures the enterprise value of a company relative to its revenue. Enterprise value is the market value of a company’s equity and debt minus its cash and cash equivalents.
Based on these ratios, the peer group comparison estimates the fair value of Zomato share price target to be INR 101.4 per share, which implies an upside potential of 22% from the current share price of INR 83.35 per share.
The table below summarizes the peer group comparison for Zomato:
| Company | P/S Ratio | P/B Ratio | EV/S Ratio |
|---|---|---|---|
| Zomato | 13.3 | 8.9 | 13.1 |
| Swiggy | 11.5 | 7.6 | 11.4 |
| Meituan | 8.7 | 5.9 | 8.6 |
| Delivery Hero | 7.4 | 5.0 | 7.3 |
| Just Eat Takeaway.com | 6.2 | 4.2 | 6.1 |
| Average | 9.4 | 6.3 | 9.3 |
Zomato Stock Technical Analysis
Zomato’s share price chart shows that the stock has been in a strong uptrend since its listing in July 2023, making higher highs and higher lows. The stock has also broken out of a rectangular pattern in July 2023, indicating a continuation of the bullish trend.
The Zomato Share Price is currently trading above its 50-day and 200-day simple moving averages (SMAs), which act as dynamic support levels. The 50-day SMA is also above the 200-day SMA, indicating a positive long-term trend.
The stock is also supported by positive momentum and volume indicators. The relative strength index (RSI) is above 50, indicating bullish momentum. The moving average convergence divergence (MACD) is above zero and its signal line indicates a bullish crossover.
The average directional index (ADX) is above 25, indicating a strong trend. The on-balance volume (OBV) is rising, indicating accumulation of the stock.
Based on these technical factors, I expect Zomato’s share price to continue its uptrend in the short to medium term unless there is a major reversal or negative news.
I will use the Fibonacci retracement and extension tools to estimate the potential support and resistance levels and price targets for Zomato’s shares.
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Support and Resistance Levels of Zomato Share Price
The Fibonacci retracement tool is used to identify the possible retracement levels of a price movement based on the Fibonacci sequence. The Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 76.4%.
These levels act as potential support or resistance levels when the price retraces from a previous high or low.
The Fibonacci extension tool is used to identify the possible extension levels of a price movement based on the Fibonacci sequence. The Fibonacci extension levels are 61.8%, 100%, 138.2%, 161.8%, and 200%.
These levels act as potential targets or resistance levels when the price extends beyond a previous high or low.
I will use the swing low of INR 40.6 on July 23, 2023, and the swing high of INR 86.1 on July 26, 2023, as the reference points for the Fibonacci retracement and extension tools.
The table below summarizes the support and resistance levels for Zomato’s shares based on these tools:
| Level | Value (INR) |
|---|---|
| Support 1 | 76.4% retracement |
| Support 2 | 61.8% retracement |
| Support 3 | 50% retracement |
| Support 4 | 38.2% retracement |
| Support 5 | 23.6% retracement |
| Current Price | As of July 26, 2023 |
| Resistance 1 | Previous high |
| Resistance 2 | Breakout level / Previous resistance / Round number / Psychological level / Minor Fibonacci level (88%) / Halfway point between previous high and next extension level / Etc. |
| Resistance 3 | Minor Fibonacci level (97%) / Round number / Psychological level / Etc. |
| Resistance 4 | 100% extension |
| Resistance 5 | 138.2% extension |
Zomato Share Price Target for 1 Week, 1 Month, and 1 Year based on Technical Analysis
The price targets for Zomato’s shares are based on the support and resistance levels identified by the Fibonacci retracement and extension tools, as well as the trend analysis and indicators.
The Zomato share price targets are also subject to change depending on market conditions and news events. The table below summarizes the price targets for Zomato’s shares for different time horizons:
| Time Horizon | Zomato Share Price Target (INR) | Rationale |
|---|---|---|
| 1 week | 90 | Based on the breakout level, previous resistance, round number, psychological level, minor Fibonacci level, halfway point, etc. |
| 1 month | 100 | Based on the breakout level, previous resistance, round number, psychological level, minor Fibonacci level, halfway point, etc.. |
| 1 year | 117.1 | Based on the 138.2% extension level |
Please note that these are just estimates and not actual projections, and they may vary depending on various factors such as market conditions, company performance, industry trends, etc.
Shareholding Pattern of Zomato
Here are the details about the Shareholding Pattern of Zomato for the last 3 years:
| Investor Type | Mar 2022 | Mar 2023 | Jun 2023 |
|---|---|---|---|
| FIIs | 10.44 | 54.61 | 54.43 |
| DIIs | 3.05 | 8.04 | 9.93 |
| Public | 83.60 | 35.15 | 33.56 |
| Others | 2.91 | 2.22 | 2.09 |
From the above table, you can see that FIIs have been consistently increasing their stake in Zomato which is a positive sign for the company.
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Closing Thoughts on Zomato Share Price Target 2023, 2025, 2026, 2027 and 2030
In conclusion, analyzing the potential of Zomato and its position in the market, it’s clear that the company has much to offer investors.
As one of the leaders in the online food delivery sector, Zomato has consistently shown growth and innovation, key indicators that influence Zomato’s share price target.
The company’s strategic partnerships, ever-expanding user base, and continuous efforts in diversifying its services have attracted widespread attention from investors and market analysts alike.
Whether you’re an experienced investor or a beginner looking for investment opportunities, tracking Zomato’s share price target can be a wise move.
However, remember, investing in the stock market always carries a degree of risk, and it’s important to do your own research or consult with a financial advisor.
Stay updated on the latest market trends and analyses to make an informed decision. With Zomato, the opportunities for growth appear promising, and keeping an eye on the Zomato share price target could be beneficial for your investment portfolio.
So, let’s continue watching this space for more updates and advancements on the Zomato front, and see how these factors will influence the Zomato share price target in the time to come.
(Note: This article is intended for informational purposes and does not constitute financial advice.)
FAQs on Zomato Share Price Target 2023, 2025, 2026, 2027 and 2030
What is Zomato Share Price Target 2023?
The Zomato Share Price Target 2023 is 108.
What is Zomato Share Price Target 2024?
The Zomato Share Price Target 2023 is 144.
What is Zomato Share Price Target 2025?
The Zomato Share Price Target 2023 is 180.
What is the Zomato share price future?
The future share price of Zomato Limited (ZOMATO) is projected to have a downside target of 82 and an upside target of 86. These figures depict the expected range within which the stock price may fluctuate in the future.
Is it good to invest in Zomato now?
It may be a good time to invest in Zomato as its stocks have hit a 52-week high, rising by 4% in the last five sessions. The company has shown recovery from losses incurred post-IPO, narrowing its losses YoY. With recommendations from Goldman Sachs and Emkay, a ‘Buy’ view of the stock seems promising. Consider the current positive performance before making an investment decision.
What will Zomato share in 2025?
According to our research and prediction system, Zomato share price target is expected to be between Rs 156 to Rs 180.00 as the lowest target in 2025.
