BofA Securities View on Zomato
Research firm BofA Securities has kept neutral rating on Zomato with a target at Rs 82 per share.
The Blinkit deal is well flagged in advance with 7% dilutive to shareholders.
The competition impact felt over time, while breakeven delays risks.
Blinkit acquisition price is lower than the last round valuation of USD 1 billion, reported CNBC-TV18.
Tata Cons AGM | Following 3-brand strategy in tea for international markets with Tetley, Good Earth & Teapigs. Contribution of innovation to sales has gone up 2x during the year, says Tata Cons Chairman#TataCons #AGM pic.twitter.com/lVTjoV4HX2— CNBC-TV18 (@CNBCTV18Live) June 27, 2022
Nifty metals index rises 2.4 percent led by Hindalco and Vedanta, APL Apollo the sole loser in the index
#OnCNBCTV18 | No rate change expected in this GST Council meeting. Expecting an announcement for MSMEs regarding a larger online platform to sell, says Mahesh Jaising of Deloitte India pic.twitter.com/k3jS6zBzSY— CNBC-TV18 (@CNBCTV18Live) June 27, 2022
Market at 11.00 AM
Indices trade positive, Sensex up around 1 percent, Nifty above 15,800
The Sensex was trading higher with a gain of 506 points or 0.96% at 53,226.68 and the Nifty was higher by 157.4 points or 1.02% at 15,860. About 2,432 shares have advanced, 694 shares declined, and 152 shares are unchanged.
Gold Prices Today: Volatile trading on cards as recession fear, hawkish Fed haunt markets
Gold may remain a range amid warring factors however Fed’s tightening expectations may keep pressure on prices, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Dr Reddy’s Laboratories share price gained 2 percent intraday on July 27 after the company acquired an injectable product portfolio from Eton Pharma.
Dr. Reddy’s Laboratories has acquired a portfolio of branded and generic injectable products from Deer Park, Illinois, based Eton Pharmaceuticals, Inc, company said in its press release.
The portfolio includes the Biorphen (phenylephrine hydrocholoride) Injection and Rezipres (ephedrine hydrochloride) Injection NDAs with nine separate combinations of strengths and presentations and one firstto-file approved ANDA for Cysteine Hydrochloride for the US.
Dr Reddy’s Laboratories was quoting at Rs 4,366.40, up Rs 57.65, or 1.34 percent on the BSE.
Credit Suisse View on Zomato
Research firm Credit Suisse has kept outperform rating on Zomato with a target at Rs 90 per share.
The Blinkit acquisition is on expected lines and will likely raise EBITDA loss in FY23/FY24.
The company has not guided on total dark stores or near-term profitability. The annualising May 2022 EBITDA loss could reduce its FY23 adjusted EBITDA by Rs 756 crore.
The food delivery business is trending to profitability, while cash reserves ensure sufficient funding for growth initiatives in near term, reported CNBC-TV18.
At 10:45 hrs Zomato was quoting at Rs 67.40, down Rs 2.95, or 4.19 percent on the BSE.