Zomato Share Price Target 2024, 2025, 2026, 2027, 2030 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 2024, 2025, 2026, 2027, 2030 Prediction.

In this blog post, we also will analyze Zomato’s business, financials, growth prospects, competitive position, and key risks and opportunities. We will also provide some guidance on whether you should invest in this stock or not.

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Zomato Share Price Target 2024, 2025, 2026, 2027, 2030

Zomato Share Price Target 2024

In 2024, the Zomato Share Price Target ranged from a minimum of ₹150 to a maximum of ₹180, with an average target of ₹165.

Zomato Share Price Target 2025

For 2025, the Zomato Share Price Target had a minimum of ₹173, a maximum of ₹207, and an average target of ₹190.

Zomato Share Price Target 2026

In 2026, the Zomato Share Price Target ranged from ₹198 (minimum) to ₹238 (maximum), with an average target of ₹218.

Zomato Share Price Target 2030

For the year 2030, the Zomato Share Price Target had a minimum target of ₹347, a maximum target of ₹416, and an average target of ₹382.

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Zomarto Share Price Live Chart and History

Competitors of Zomato Stock

Zomato, a prominent player in the online food delivery industry, operates in a dynamic and diverse market. It faces competition from several key players, each with its unique offerings and market strategies. Here’s an insightful look into Zomato’s main competitors:

1. Swiggy: A dominant force in India’s food delivery sector, Swiggy holds approximately 45% of the market. Established in 2014 and bolstered by major investors like Naspers and Tencent, Swiggy extends beyond food delivery to groceries and essentials through Instamart. Reports suggest Swiggy’s plans for a 2022 IPO, aiming for a $10 billion valuation.
2. DoorDash: With the largest share (50%) in the U.S. food delivery market, DoorDash, founded in 2013, is a significant competitor. It’s backed by notable investors such as SoftBank and offers a range of services, including DashMart for quick grocery deliveries. DoorDash’s IPO in December 2020 valued the company at $39 billion.
3. GrubHub: Holding a 17% share in the U.S., GrubHub is a key player. Its journey started in 2004, leading to its acquisition by Just Eat Takeaway in June 2020 for $7.3 billion. GrubHub is known for its comprehensive services, including a loyalty program, GrubHub+.
4. Postmates: Operating in the U.S. and Mexico, Postmates has carved out a 7% market share. Launched in 2011 and supported by investors like Founders Fund, it was acquired by Uber in December 2020 for $2.65 billion. Postmates is recognized for its wide range of delivery options.
5. Uber Eats: As a division of the global giant Uber, Uber Eats has a significant presence in over 6,000 cities across 45 countries. Launched in 2014, it holds a 22% share in the U.S. market. Uber Eats is distinguished by its quick commerce platform, Uber Eats Essentials.

For a comprehensive comparison, here’s a table summarizing key metrics of Zomato and its competitors as of December 3, 2021:

Zomato Buy or Sell?

Growth Opportunity for Zomato Stock

Zomato stands at the forefront of significant growth opportunities in the evolving food delivery and restaurant discovery market. This potential is driven by a combination of technological, economic, and market expansion factors, both in India and internationally. Let’s explore these growth drivers:

1. Rising Smartphone and Internet Penetration: With India’s vast smartphone user base, exceeding 760 million in 2021, coupled with an anticipated increase in internet users to 974 million by 2025, Zomato’s potential customer base is expanding rapidly. This digital growth extends beyond India to emerging markets like Brazil, Indonesia, and South Africa, where similar trends are observed, offering fertile ground for Zomato’s services.
2. Urbanization and Increasing Disposable Income: India’s rapid urbanization, projected to encompass 40% of the population by 2030, aligns with a growing demand for food delivery services. Concurrently, the forecasted rise in per capita income at a 6.8% CAGR until 2025 enhances consumer spending power, beneficial for platforms like Zomato.
3. Market Expansion and Penetration: The Indian online food delivery market, valued at $4.2 billion in 2020, is expected to burgeon to $12.5 billion by 2025. The relatively low penetration rate in India compared to other nations underscores a vast untapped market, offering Zomato a substantial opportunity for growth. Additionally, Zomato’s global presence positions it well for expansion into markets like the Middle East, Southeast Asia, and Europe.
4. Diversification of Offerings: Zomato’s commitment to innovation is evident in its diverse product portfolio:
   • Zomato Pro Plus: Launched in August 2021, this service provides unlimited free deliveries and other perks, reflecting strong customer demand.
   • Zomato HyperPure: This procurement solution, catering to over 6,000 restaurants across 14 cities, ensures quality ingredient supply, fortifying Zomato’s partnership with restaurants.
   • Zomato Blinkit: Introduced in October 2021, this quick commerce platform meets the rising demand for online grocery and convenience shopping.

Zomato is poised for remarkable growth in the global food delivery and restaurant discovery sectors. This growth trajectory is supported by digital advancements, socioeconomic changes, market expansion, and strategic diversification of services. Zomato’s established brand, extensive customer and restaurant network, and innovative solutions are key to capturing these burgeoning opportunities and boosting its market presence and revenue.

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Strengths of Zomato Stock

Zomato stands out as a formidable contender in the food delivery and restaurant discovery industry, offering compelling reasons for investment consideration. Let’s delve into the core strengths that underscore Zomato’s competitive edge:

1. Prominent Brand Recognition and Customer Loyalty: Zomato’s robust presence, marked by over 230 million monthly active users and a 75% customer retention rate, testifies to its solid brand reputation and customer loyalty. This strong foothold not only fosters customer retention but also drives consistent order volumes, thereby optimizing marketing expenditures and enhancing overall value.
2. Extensive and Varied Restaurant Network: With more than 1.5 million active restaurant listings worldwide, Zomato caters to a diverse range of culinary tastes and budgets. Its varied service offerings, including Zomato Pro and Blinkit, further enrich the customer experience, creating multiple revenue streams and enhancing customer satisfaction.
3. Technology-Driven Innovation: Zomato leverages cutting-edge technologies like AI, machine learning, and big data to refine its service offerings. This tech-driven approach aids in streamlining operations, personalizing customer experiences, and ensuring efficient delivery services, thereby elevating overall service quality.
4. Dynamic Leadership: The leadership team, spearheaded by CEO Deepinder Goyal and supported by CFO Akshant Goyal and COO Mohit Gupta, brings a wealth of experience and vision. Their expertise has been pivotal in navigating challenges and capitalizing on opportunities, driving Zomato’s growth and innovation.

Zomato’s strengths lie in its powerful brand presence, diverse restaurant network, technological innovation, and dynamic leadership. These factors collectively bolster its market position and revenue generation, making it an attractive investment in the food delivery and restaurant discovery market.

Weaknesses of Zomato Stock

While Zomato has established a strong presence in the food delivery sector, it faces certain challenges that could impact its growth and profitability. Understanding these weaknesses is crucial for a comprehensive assessment:

1. Reliance on Food Delivery and the Indian Market: Zomato’s revenue stream is significantly tied to its food delivery services, which contribute about 85% of its total revenue. This dependence makes it susceptible to market fluctuations, such as shifts in consumer preferences and regulatory changes. Furthermore, with approximately 94% of its revenue generated from the Indian market, Zomato is exposed to region-specific risks including political instability and economic fluctuations.
2. Elevated Operating Costs and Persistent Losses: Zomato’s ambitious expansion strategies have led to considerable operating expenses and financial losses. For instance, its operating expenses surged by 23.4% in FY 2021, and its net loss widened by 136.6% in the same period. The food delivery segment, with a negative contribution margin, underscores concerns about Zomato’s long-term financial sustainability and capacity for innovation and growth.
3. Challenges in Customer Satisfaction and Trust: Zomato has encountered customer service challenges, including issues related to service quality, delivery speed, and accuracy. Allegations of unethical practices, such as inauthentic reviews and unfair partner treatment, have also surfaced. These issues, exemplified by a notable penalty imposed by the Consumer Disputes Redressal Commission in October 2021, have impacted customer trust and satisfaction, potentially affecting brand reputation and customer loyalty.

Zomato’s challenges, including its dependence on a specific segment and market, high operating costs, and customer satisfaction issues, present hurdles in its path to sustained growth and profitability. Addressing these weaknesses is crucial for maintaining market share and safeguarding shareholder interests.

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SWOT Analysis of Zomato Stock

A SWOT analysis offers a structured method to assess the internal and external factors influencing Zomato’s performance and potential. Here’s a detailed breakdown:

Strengths:

• Brand Recognition & Customer Loyalty: Zomato’s robust brand image and loyal customer base are significant assets. This strong market presence aids in customer retention and order volume growth.
• Diverse Restaurant Network: The platform’s expansive and varied restaurant listings cater to a broad spectrum of customer preferences, enhancing its market appeal.
• Innovative Technology: Zomato’s investment in data-driven technologies such as AI and machine learning enhances operational efficiency and customer experience.
• Visionary Leadership: The experienced management team at Zomato, with their strategic vision, has been instrumental in navigating the company through various market dynamics.

Weaknesses:

• Segment and Market Dependence: Zomato’s heavy reliance on the food delivery segment and the Indian market makes it susceptible to market-specific risks.
• High Operating Costs: The company’s aggressive expansion and investments have led to considerable operating expenses, impacting its financial stability.
• Customer Satisfaction Issues: Challenges in service quality and ethical practices have led to decreased customer trust, potentially impacting brand reputation.

Opportunities:

• Digital Growth: The increasing penetration of smartphones and internet access opens up a larger potential customer base for Zomato.
• Urbanization and Income Growth: Rising urban populations and disposable incomes in India and other markets present significant opportunities for expansion.
• Market Expansion: The growing size and penetration of the online food delivery market offer substantial growth prospects.
• Service Diversification: Opportunities to diversify product offerings and revenue streams, such as through Zomato Pro Plus and Blinkit, can drive further growth.

Threats:

• Competitive Market: Intense competition from existing and emerging players in the food delivery sector poses a significant challenge.
• Regulatory Hurdles: Uncertainties in regulatory environments and potential legal challenges could impact operations.
• Pandemic Effects: Changes in consumer behavior due to the pandemic and related disruptions could influence demand patterns.
• Cybersecurity Concerns: Risks related to data security and potential breaches remain a concern in the digital space.

This SWOT analysis highlights Zomato’s strong market position and potential growth opportunities, balanced against its operational challenges and external threats. Investors should consider these factors carefully to make informed decisions regarding Zomato stock.

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Zomato Company Financials

Zomato’s financial results for the fiscal year ending March 31, 2023, highlight its robust recovery and growth in the food delivery and restaurant discovery market. Key financial metrics and their implications are as follows:

Key Financial Metrics for FY 2023:

• Revenue Growth: Zomato reported a significant revenue increase of 255.9% to Rs 70.79 billion ($946.5 million), signaling a strong recovery post-pandemic and growth in market share and product diversity.
• Gross Profit and Margin: The company’s gross profit rose to Rs 18.95 billion ($253.3 million) with a gross margin of 26.8%. This improvement is attributed to operational efficiencies and cost reductions, particularly in the food delivery segment.
• Operating Expenses and Loss: Operating expenses were recorded at Rs 53.66 billion ($717.5 million), resulting in an operating loss of Rs 34.71 billion ($464.1 million). Despite the loss, there’s a noticeable reduction in marketing and employee expenses.
• Net Loss and Margin: The net loss stood at Rs 9.71 billion ($129.8 million), decreasing the net margin to -13.7%. The reduction in net loss is primarily due to increased other income and lower finance costs.
• Liquidity Position: Cash and cash equivalents remained robust at Rs 142.64 billion ($1.91 billion), bolstered by the IPO and pre-IPO funding rounds, providing financial strength for future investments.
• Asset and Liability Growth: Total assets increased to Rs 178.35 billion ($2.38 billion), and total liabilities grew to Rs 35.71 billion ($477.5 million). The rise in assets is largely due to investments in Grofers and Zomato Payments, while the liabilities include deferred revenues from subscription sales.

Zomato’s FY 2023 financials reflect a solid recovery from the pandemic’s impact and continued growth in its core markets. Key improvements are seen in revenue, gross profit, gross margin, and a reduction in operating losses. The company’s strong cash position and increased assets highlight its potential for sustained profitability and long-term growth.

Risks in the Future for Zomato Stock

Investing in Zomato stock entails navigating various risks and uncertainties that could impact its performance and value in the future. Key risks include:

1. Intense Market Competition: Zomato competes with established players like Swiggy, DoorDash, and Uber Eats, as well as emerging entrants such as Amazon and Reliance. This intense competition could pressure Zomato to increase spending on marketing and innovation, potentially impacting margins and profitability.
2. Regulatory and Legal Challenges: Operating in a complex regulatory landscape, Zomato must comply with diverse laws concerning food safety, labor, data privacy, and more. Non-compliance or legal disputes could lead to fines, operational restrictions, or reputational damage, adversely affecting business operations and growth prospects.
3. Pandemic-Related Disruptions: Zomato’s business model is sensitive to pandemic-induced changes, which may include:
   • Fluctuating Customer Demand: Pandemic fears or economic downturns could reduce customer spending on food delivery and dining out, affecting order volumes and revenue.
   • Challenges in Restaurant Supply: Lockdowns or financial hardships faced by partner restaurants could diminish Zomato’s restaurant network, impacting service offerings and revenue.
   • Delivery Partner Constraints: Health risks or alternative job opportunities might lead to a shortage of delivery partners, hindering delivery efficiency and customer satisfaction.
4. Cybersecurity and Data Breaches: Handling vast amounts of sensitive data, Zomato faces cybersecurity threats. Data breaches could result in legal liabilities, financial losses, and damage to trust and reputation, impacting customer retention and revenue.

Zomato’s future is influenced by competitive pressures, regulatory complexities, pandemic-related market shifts, and cybersecurity challenges. These factors could potentially affect its market share, revenue, and shareholder value. Investors should carefully consider these risks when evaluating Zomato stock.

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Key Things to Watch Out for Zomato Stock

Zomato stock represents a dynamic investment, subject to various influencing factors. Investors should closely monitor the following aspects:

1. Financial Performance Metrics: Key indicators such as revenue, gross profit, operating expenses, and net loss in Zomato’s quarterly and annual reports offer insights into its financial health. Additionally, investors should consider Zomato’s guidance and historical performance trends, along with management’s commentary on business strategies and market outlook.
2. Product Innovations: The launch of new products and services, like Zomato Pro Plus, HyperPure, and Blinkit, reflects Zomato’s adaptability and potential for market expansion. The impact of these innovations on customer engagement, revenue growth, and profitability is crucial.
3. Fundraising and Capital Management: Zomato’s ability to raise funds through IPOs, pre-IPO rounds, or other means, and its subsequent capital allocation, are critical indicators of its financial stability and strategic priorities. Monitoring changes in assets, liabilities, and equity will provide insights into Zomato’s liquidity and financial health.
4. Market Position and Competition: Zomato’s market share and position relative to competitors like Swiggy, DoorDash, and Uber Eats are essential in understanding its competitive edge. Analyzing customer base, order volumes, margins, and satisfaction levels will help assess its standing in the market.
5. Regulatory and Legal Landscape: Staying informed about the regulatory environment and potential legal challenges is vital, as these can significantly impact Zomato’s operations and reputation. Keeping track of any regulatory changes or legal disputes will be crucial for evaluating the risk profile of the stock.

Investing in Zomato stock requires vigilance on various fronts, including its financial results, product innovation, funding strategies, competitive positioning, and regulatory compliance. Understanding these factors is key for investors to make informed decisions about Zomato stock.

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Closing Thoughts on Zomato Share Price Target 2024, 2025, 2026, 2027, 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 to diversify its services have attracted widespread attention from investors and market analysts alike. 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 2024?

In the year 2024, the Zomato Share Price Target spanned from a minimum of ₹150 to a maximum of ₹180, with an average target of ₹165.

What is Zomato Share Price Target 2025?

In 2025, the Zomato Share Price Target was characterized by a minimum target of ₹173, a maximum target of ₹207, and an average target of ₹190.

What is Zomato Share Price Target 2026?

During 2026, the Zomato Share Price Target varied between ₹198 as the minimum and ₹238 as the maximum, with an average target of ₹218.

What is Zomato Share Price Target 2030?

In the year 2030, the Zomato Share Price Target encompassed a minimum target of ₹347, a maximum target of ₹416, and an average target of ₹382.