Ratings Zomato Limited

Equities

ZOMATO

INE758T01015

Market Closed - NSE India S.E. Other stock markets 07:43:50 2024-05-10 am EDT			5-day change	1st Jan Change
201.3 ^INR	+3.10%		+2.05%	+62.73%

Apr. 25	Indian food delivery firm Swiggy gets shareholder nod for $1.25 bln listing, filings show	RE
Apr. 24	New outlets, cheaper options fail to revive fast-food earnings in India	RE

Summary

The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

Strengths

Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Over the past year, analysts have regularly revised upwards their sales forecast for the company.
Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
Over the past four months, analysts' average price target has been revised upwards significantly.
Historically, the company has been releasing figures that are above expectations.

Weaknesses

The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 545.99 times its estimated earnings per share for the ongoing year.
Based on current prices, the company has particularly high valuation levels.
In relation to the value of its tangible assets, the company's valuation appears relatively high.
The company is highly valued given the cash flows generated by its activity.
The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
The average consensus view of analysts covering the stock has deteriorated over the past four months.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.

Ratings chart - Surperformance

Sector: Internet Services

	1st Jan change	Capi.	ESG Refinitiv
ZOMATO LIMITED	+62.73%	20.81B	-
TENCENT HOLDINGS LIMITED	+26.36%	441B	B
NETFLIX, INC.	+25.47%	263B	D+
UBER TECHNOLOGIES, INC.	+8.80%	140B	A-
AIRBNB, INC.	+7.48%	92.89B	C-
PROSUS N.V.	+25.85%	90.53B	B+
SPOTIFY TECHNOLOGY S.A.	+56.78%	58.64B	B-
DOORDASH, INC.	+16.13%	46.96B	C+
COSTAR GROUP, INC.	+2.85%	36.7B	B
NASPERS LIMITED	+20.84%	36.11B	C+

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes