Ratings Zomato Limited Bombay S.E.

Equities

ZOMATO

INE758T01015

Market Closed - Bombay S.E. Other stock markets 03:49:45 21/05/2024 pm IST			5-day change	1st Jan Change
189 ^INR	-2.73%		-2.40%	+52.83%

14/05	Jefferies Adjusts Zomato’s Price Target to INR230 From INR205, Keeps at Buy	MT
14/05	Nomura Adjusts Zomato’s Price Target to INR225 From INR180, Keeps at Buy	MT

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 earnings growth currently anticipated by analysts for the coming years is particularly strong.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Over the last twelve months, the sales forecast has been frequently revised upwards.
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 past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
Historically, the company has been releasing figures that are above expectations.

Weaknesses

As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 527.27 times its estimated earnings per share for the ongoing year.
The company's "enterprise value to sales" ratio is among the highest in the world.
The company appears highly valued given the size of its balance sheet.
The valuation of the company is particularly high given the cash flows generated by its activity.
The overall consensus opinion of analysts has deteriorated sharply 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 various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

Ratings chart - Surperformance

Sector: Internet Services

	1st Jan change	Capi.	ESG Refinitiv
ZOMATO LIMITED	+52.83%	20.16B	-
TENCENT HOLDINGS LIMITED	+30.65%	470B	B
NETFLIX, INC.	+32.66%	276B	D+
UBER TECHNOLOGIES, INC.	+4.36%	135B	A-
PROSUS N.V.	+30.50%	94.76B	B+
SPOTIFY TECHNOLOGY S.A.	+61.20%	61.13B	B-
DOORDASH, INC.	+13.75%	46.6B	C+
NASPERS LIMITED	+25.78%	38.08B	C+
COSTAR GROUP, INC.	+0.08%	35.74B	B
PINTEREST, INC.	+13.07%	29.13B	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