The food aggregator platform reported a net loss of Rs 359 crore for the quarter ended March 2022, more than double the loss of Rs 134 crore recorded in the corresponding period of the last year.
However, the company’s consolidated revenue from operations rose to Rs 1,212 crore in the fourth quarter of 2021-22 as compared to Rs 692 crore recorded in the corresponding period previous year, posting year-on-year growth of 75 per cent.
Following the rise in revenue, shares of Zomato zoomed 19 per cent to Rs 67.6 on Tuesday at around 10.30 am. The scrip had settled at Rs 57 on Monday. The shares saw biggest intra-day rise since their listing.
Due to the stellar intraday rise in the counter, the market capitalization of the new age tech platform hit Rs 50,000 crore mark after a long time.
Adjusted EBITDA loss reduced to Rs 220 crore, (-15 per cent of adjusted revenue) in Q4 FY22 as compared to Rs 270 crore (-19 per cent of adjusted revenue) in Q3 FY22, Zomato said in a regulatory filing.
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Global brokerage are majorly positive on the counter and have target prices above the given issue price. They believe that the worst is over for the company and downside risk for the investors is limited.
JPMorgan said adjusted Ebitda losses continued to decline and that gross order value (GOV) saw strong growth as orders came back. It said Food delivery revenues rebounded for Zomato in the March quarter, as it suggested a price target of Rs 130 on the stock.
Citi has a target of Rs 80 on the stock as it revised its estimates to incorporate FY22 numbers. It also talked about a 6 per cent sequential growth in GOVs and fall in adjusted Ebitda losses to Rs 220 crore.
Morgan Stanley has maintained ‘overweight’ for the food delivery firm with a target of 135. It noted that the company is moving in the right direction, but needs consistent execution to meet the high expectations.
Listed in July 2021, shares of Zomato were still 15 per cent below its issue price of Rs 76. Furthermore, the counter has corrected about 65 per cent from its all time high of Rs 169.10.
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