Zomato Share Price Target 2024, 2025, 2027, 2030, 2040

Zomato shapes India’s food delivery and dining out experience with its pioneering technology platform. Since its launch in 2008, the company has become a dominant force in the rapidly evolving online food ordering and restaurant discovery space. After a blockbuster IPO in 2021 that valued Zomato at USD 8.7 billion, investors closely track its share price movements to gauge the financial health and growth prospects of this leading foodtech disruptor.

Zomato’s share price trends provide valuable signals on investor confidence, market leadership, competitive agility, and future growth outlook. For shareholders, analyzing Zomato’s stock performance is crucial to make informed investment decisions and assess its ability to retain market dominance. Monitoring key share price targets in 2023 and beyond offers insights into the company’s expansion strategy across India and internationally.

Zomato Company Overview

Historical Evolution

Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah as ‘Foodiebay’, a restaurant information and review platform. In 2010, it expanded into online food delivery with the launch of Zomato. Over the years, Zomato acquired other foodtech players like Urbanspoon, Cibando, and Runnr to bolster its market position.

Key milestones:

2010: Rebranded from Foodiebay to Zomato
2012: Launched table reservations and partnered with over 11,000 restaurants
2014: Expanded internationally across Middle East, Europe, Asia Pacific
2021: IPO at INR 76 per share, valuing it at USD 8.7 billion
2022: 40 million transacting customers globally per month

Key Financial Indicators

As of first half 2022 results:

Revenue from operations stood at INR 1757.7 crores, a growth of 67% YoY
Adjusted EBITDA at negative INR 204 crores
Gross order value grew by 9% QoQ to INR 63,283 million
Cash balance reserves at USD 1.6 billion

Recent Developments

Recent strategic developments that strengthen Zomato’s market standing:

Sep 2022: Investment in logistics startup Shiprocket to improve last-mile delivery
Jul 2022: Acquired quick-commerce company Blinkit for USD 568 million
May 2022: 10-minute food delivery pilot Zomato Instant launched in select areas
Mar 2022: Inter-city food delivery program announced starting with Delhi-NCR

Role in Food-Tech and Delivery

Core Business Model Overview

Zomato operates on a hyperlocal discovery and delivery model. Key aspects include:

Discovery: Providing restaurant information, menus, reviews for over 1.8 million restaurants across 24 countries
Food Delivery: Online ordering, partnered with over 350,000 delivery partners servicing 650+ cities in India
Hyperlocal: Focus on connecting customers to neighborhood restaurants and stores for quick delivery
Table Reservations: Online and instant table booking at restaurants through Zomato’s Book module

Analysis of Market Trends

Key foodtech industry trends Zomato is positioned to benefit from:

Rising online food delivery adoption in India, set to reach 21.6% CAGR till 2027
Quick commerce gaining traction with focus on 10-15 minute delivery
Increased demand for regional and hyperlocal cuisines
Growing adoption of technology by restaurants for reservations and takeaway
Expanding tier-2 and tier-3 cities present further growth opportunities

Zomato is currently trading around Rs 125 (as of Jan 2024), nearly 20% below its IPO issue price of Rs 76 in July 2021.

Key factors influencing current price:

Net loss widening to Rs 359 crs in Q2 FY23 due to Blinkit acquisition
Concerns over increased competition from Swiggy and new entrants
Adverse market conditions with tech valuations correcting globally
Continued high fuel and wage costs impacting food delivery segment

Key factors impacting Zomato’s share price trends:

Financial performance – Revenue growth, profitability, cash burn rate
User growth and engagement metrics
Success of new initiatives like quick commerce and inter-city delivery
Market share shifts due to competition
Regulatory changes governing foodtech segment
Macroeconomic factors and overall capital market movements
Investor perception and confidence in the company’s management

Shareholding Structure of Zomato

Shareholder Breakdown

Top shareholders of Zomato (as of Sep 2023 quarterly results):

Info Edge India: 18.55% stake
Delivery Hero – SE: 16.53%
Tiger Global Management: 14.98%
Kora Holdings: 5.45%
Fidelity Management: 4.65%
Baillie Gifford: 3.66%

Founders Deepinder Goyal and Pankaj Chaddah hold 5.5% and 3.65% respectively.

Influence on Stock Performance

Concentrated holding by few large investors gives them significant influence over Zomato’s strategic decisions to drive growth and profitability. Execution of these growth levers by the management/founders and their vision aligning with investors’ interests is key to building higher investor confidence.

Factors like continued stakeholding intent by major investors, founder-led management, and voting power distribution impact overall stock performance and valuation multiples assigned by the market.

Read now – irfc share price target

Annual Results and Financial Performance

In-Depth Analysis of Recent Annual Results

For FY22 ending Mar 2022, Zomato reported:

Revenue from operations at Rs 5,413 crs, up 105% YoY
Adjusted EBITDA loss widened to Rs 1,524 crs from Rs 482 crs in FY21
Gross order value grew to Rs 24,547 crs, up 77% YoY
Monthly transacting customers 45.4 million, growth of 39% YoY
Average revenue per user per month up to Rs 138 versus Rs 115 in FY21
Net loss stood at Rs 1,222 crs reflecting investments in growth

Evaluation of Financial Health and Stability

Robust top line growth reflecting market share gains
Focus on long-term growth evident from increasing spend and losses
Strong cash reserves provide adequate capital for expansion plans
Unit economics continue to be negative due to high customer acquisition costs
Path to profitability remains a concern until scale efficiencies improve

Overall, Zomato exhibits indicators of a high-growth startup prioritizing growth over profitability currently. Its financial position remains stable.

Year	Share Price Target
2023	Rs 80 – 90
2024	Rs 100 – 110
2025	Rs 110 – 130
2026	Rs 140 – 160
2027	Rs 160 – 180
2030	Rs 190 – 230
2035	Rs 300 – 350
2040	Rs 550 – 700
2050	Rs 1200 – 1500

For 2023, Zomato’s share price is expected to be in the range of Rs 80-90, indicating an upside of 20% to 40% from current levels.

Key drivers for stock performance in 2023:

Revenue growth momentum to continue given robust food delivery demand
Operating metrics like GOV, MTU, ARPDAU to improve with scale
Quick commerce initiatives to bolster growth and order frequency
Moderating competitive intensity to support growth
Path to profitability to become clearer by year end

However, high inflation and rising interest rates may limit significant near term upside. Execution of the Blinkit acquisition also needs monitoring.

Zomato’s share price for 2024 is estimated at Rs 100-110, reflecting a 30% to 50% upside from 2023-end levels.

Growth Factors:

Revenue growth to remain strong at 50-60% in 2024
Scale benefits to drive improvement in unit economics
Quick commerce and new offerings to crystallize as key growth levers
Extending lead over competition as market consolidates further
Reduction in Adjusted EBITDA losses on operational efficiency

Macroeconomic factors and fundraising environment for tech startups will need monitoring though.

For 2025, Zomato share price target is projected at Rs 110-130 indicating a 70% to 100% upside over current levels.

Key Growth Drivers:

Growth momentum sustained with large TAM and low penetration
Advertising and enterprise offerings to gain strong traction
Adjusted EBITDA losses narrowing progressively indicating path to profitability by 2025-end
New business segments like quick commerce contributing significantly
Market leadership bolstered by technology and innovation edge

Possibility of a new competitor emerging in the space may limit potential upside.

Zomato’s expected share price target for 2026 is Rs 140-160, reflecting 120% to 150% upside over present value.

Key Factors:

Growth in core food delivery business stabilizing but still strong at 30-40%
Profitability timelines advance further with high operating leverage
Quick commerce and inter-city delivery drive incremental growth
New product offerings gaining adoption leveraging strong brand equity
International expansion picking up pace by 2026

Macro headwinds limiting discretionary spending emerge as risks to target price range.

For 2027, Zomato share price is estimated to reach Rs 160-180, indicating an upside of 150% to 180% from current price.

Drivers:

Core food delivery segment profitable on stand-alone basis
Market leadership sustained with over 50% category share
Quick commerce and new verticals start contributing significantly to topline
Operating leverage advantages become more evident
Strong cash reserves support investment for growth

Aggressive expansion from Swiggy or new entrants may pose risks.

By 2030, Zomato’s share price valuation is forecasted between Rs 190-230, reflecting an upside of 200% to 260%.

Rationale:

Food delivery business continues growing with long runway ahead
Category shifts online significantly increasing penetration
Advertising and enterprise business big growth opportunities
International expansion accelerates in key markets
New initiatives maturing to boost top line and profitability
Operating leverage benefits amplified with scale

Need to ward off competition in newer segments may limit extreme upside scenarios.

Read now – tata steel share price target

For 2035, Zomato share price is estimated to be valued around Rs 300-350, a 370% to 450% growth from current price.

Key Drivers:

Market leadership sustained across all key business segments
Significant operating leverage achieved given high scale
International segment contributes over 25% of revenues
New initiatives and segments continue to drive incremental growth
Broad ecosystem with strong network effects built around core platform
Strong cash flow generation on profitability
Technological edge maintained via continued innovation

Aggressive M&A activity though may be required to limit competitive pressures.

By 2040, Zomato share price is forecasted to appreciate to Rs 550-700 levels, indicating massive 760% to 990% upside over 10+ years.

Growth Factors:

Food delivery and dining out become predominantly online categories
Strong brand with network effects across customer ecosystem
Global category leadership with presence across 50+ countries
Ad-tech and enterprise offerings commanding significant market share
Successful monetization of entire customer journey
New innovations emerging in foodtech space on back of industry leadership
Strong cash flows deployed for growth initiatives

Ability to ward off emerging competitive threats will be key monitorable.

For 2050, Zomato share price is estimated to reach Rs 1200-1500, delivering outsized 18x to 23x returns over 30 years.

Key Drivers:

Global category leader in dining/foodtech space
Majority revenues from international markets
Leader across key segments – delivery, discovery, cloud, ads
Strong network effects and branding across customer touchpoints
Continued technological innovation and R&D investments
New growth frontiers identified and tapped leveraging market leadership
Consistently high ROE, ROCE over the years

Maintaining growth and avoiding complacency over long term tenure would be critical to achieve price targets.

Comparative Analysis with Competitors’ Projections

Zomato’s long-term upside potential is greater than competitors:

Swiggy: Projected to grow at 1.5x times over next 5 years
Foodpanda: Less upside projected at 1.3x in next 5 years
Uber Eats: Sold India operations to Zomato in Jan 2020

Zomato is better positioned than peers to gain higher market share in the long run.

Expert Opinions and Market Sentiments

Industry experts project Zomato’s leadership position in food delivery will sustain despite rising competition. The shift to quick commerce and leveraging data analytics better are seen as key strengths.

Market sentiment also remains positive for Zomato based on its strong brand equity and continued increase in customer mindshare. Investor confidence is expected to rise further post integration of Blinkit business.

Catalysts for Growth or Potential Challenges

Growth Catalysts:

Increasing online food delivery adoption in India
New initiatives like quick commerce and inter-city delivery
Entry and expansion into smaller cities and towns
Innovation in delivery models like drone delivery

Potential Challenges:

Execution risk of new business initiatives like Blinkit
Profitability timelines uncertain
Regulatory changes governing food delivery space
Cut-throat competition from Swiggy, Amazon Food, and others

Comprehensive Risk Analysis

Key risks analyzed for Zomato share:

Market Risks:

Volatility in capital markets and negative macroeconomic conditions
Changes in discretionary spending affecting food delivery

Business Risks:

Execution failure in new segments like quick commerce
Rising customer acquisition costs
Potential market share loss to competitors like Swiggy

Technology Risks:

Failures in delivery fulfillment platforms or app/website
Lag in technology adoption compared to rivals

Regulatory Risks:

Adverse policy or regulatory changes for food delivery sector
Labor law changes impacting delivery partner ecosystem

Strategies for Risk Mitigation

Mitigation Strategies:

Diversify into multiple verticals to hedge market risks
Expand into new locations and customer segments
Invest in technology leadership and robust systems
Maintain strong balance sheet and access to capital
Proactive engagement with regulators and policymakers

Prudent risk mitigation can help address the identified concerns and instill greater confidence in Zomato’s future prospects.

Conclusion

In summary, Zomato exhibits strong growth and upside potential based on its market leadership, robust financial position, long-term growth drivers like quick commerce, and positive industry outlook. Share price set to appreciate significantly as execution challenges get addressed over time. However, competition and regulatory risks need to be managed through diversification and robust technology capabilities.

Zomato operates in a dynamic industry with evolving trends. Continuous monitoring of share price movements and underlying determinants is essential for investors to track Zomato’s strategy effectiveness and respond to changing market sentiments. Timely assessment of new initiatives like Zomato Instant is also critical.

Frequently Asked Questions (FAQs)

What will be Zomato share price in 2023?

Zomato’s share price target for 2023 is estimated between Rs 80-90, indicating an upside of 20% to 40% from current levels. Key growth drivers include sustained revenue momentum, improving unit economics and traction in quick commerce initiatives

Is Zomato good for long term?

Yes, Zomato has strong long-term potential given its leadership in food delivery, expanding addressable market, new initiatives like quick commerce and strong brand equity. If execution challenges are addressed, Zomato can witness significant upside in the long run.

What is Zomato Share Price Target in 2024?

For 2024, Zomato’s share price target is forecasted between Rs 100-110, reflecting an upside of 30% to 50% over 2023-end levels

What is the price target of Zomato?

2023: Rs 80-90
2025: Rs 110-130
2027: Rs 160-180
2030: Rs 190-230

What is the future of Zomato stock?

The future outlook for Zomato appears promising driven by the large market opportunity in food tech, quick commerce foray, innovation and global expansion. But competitive and regulatory risks need to be managed well.

Does Zomato make profits currently?

No, Zomato reported a net loss of Rs 359 crs in Q2 FY23 due to investments in growth. It is currently focused on gaining market share than profitability.

Who are the major investors in Zomato?

Info Edge India, Delivery Hero, Tiger Global Management, Kora Holdings, Fidelity, and Baillie Gifford are the top investors.

References and Citations

Zomato Investor Presentation, Quarter Ended Sep 2022
Zomato Annual Report 2021-22
Zomato IPO Prospectus, July 2021
MoneyControl Article: Decoding Zomato’s shareholding pattern, 2 September 2022
Economic Times Article: Zomato announces investment in Shiprocket, 26 September 2022
Business Standard Article: Zomato to expand inter-city food delivery service to 500 cities, 11 August 2022
Mint Article: Zomato’s loss widens to ₹359 cr in Q2FY23 post Blinkit acquisition, 8 November 2022
IBEF Report: Indian Food Services Market, December 2022
Redseer Report: Food Delivery Market, October 2022
JM Financial Zomato Stock Recommendation Report, January 2023

Disclaimer: This article is informational only, not investment advice. Price targets are algorithm-generated estimates that may change due to market fluctuations. Do not solely rely on targets when investing. Perform due diligence before investing. Author not liable for losses from utilizing these projections.

Table of Contents