15 April 20024 – Over the last year, ZOMATO has outperformed advances in all of the main delivery companies globally, prompting analysts to revise their outlooks for the Indian firm as its profitability increases.
Zomato has outperformed all other companies in a Bloomberg Intelligence index of worldwide ride-sharing and delivery rivals in terms of price target increases over the last 12 months. Including Citigroup and HSBC Holdings, at least five brokerages have raised their price projections for the shares in the last several weeks.
Although consensus has found it challenging to keep up with Zomato’s approximately 260% increase since last April, expectations are still rising. Analysts’ profit expectations have moved from previously predicted losses to positive numbers, and excitement is mounting for the company’s ventures outside of its primary restaurant meal delivery business.
Conclusion
In a recent note, analyst Manish Adukia of Goldman Sachs Group said that the company anticipates earnings predictions for Zomato’s “quick commerce” firm Blinkit to improve. Although “previous investor conversations suggested scepticism around the profitability of this business model,” he said, worries ought to subside as more outcomes are made public.
