Zomato Q1: Food delivery platform Zomato reported a consolidated loss of Rs 186 crore for the quarter ended June which was nearly half the Rs 359 crore reported in the same period last year.
Zomato
Zomato share price added eight percent in early trade on August 2 after the company came out with its June quarter earnings yesterday.
Food delivery platform Zomato reported a consolidated loss of Rs 186 crore for the quarter ended June which was nearly half the Rs 359 crore reported in the same period last year.
Its revenue from operations came in at Rs 1,413.9 crore, up 67.44 percent.
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Here is what brokerages have to say about stock and the company post June quarter earnings
Goldman Sachs
The foreign brokerage firm has maintained a buy rating on the stock with a target at Rs 100 per share as the GMV/revenue was in line and profitability improved.
The food delivery segment is narrowing losses and acquired firm Blinkit is scaling up at a robust pace, CNBC TV18 reported.
Morgan Stanley
The broking house has kept an overweight rating on the stock with a target price of Rs 80.
Morgan Stanley see results as a good quality beat, driven by a healthy increase in MTUs and sees steady to improving AOVs and better monetisation.
The company is break-even at the segment level for food delivery, while sustained and steady execution over coming quarters will be key for re-rating, CNBC TV18 reported.
UBS
The research firm has kept a buy call on the stock with a target price of Rs 95.
It was another strong quarter with EBITDA breakeven in food delivery.
UBS believes growth drivers continue to remain strong and losses continue to reduce on sequential basis.
The management guided for no more minority equity investments. The order volumes are expected to continue to grow.
UBS sees potential of 5-10% steady state EBITDA margin, as hyperpure scales up, CNBC TV18 reported.
At 09:22 hrs, Zomato was quoting at Rs 48.75, up Rs 2.40 or 5.18 percent, on the BSE.
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