Brokerage firm Motilal Oswal has maintained a ‘Buy’ rating on Zomato (NSE: ETERNAL) with a price target of Rs 260, implying an upside of 8% from the current price.
On Monday, Zomato closed at Rs 239.90, which is 2.39% higher than its previous close of Rs 234.29. In comparison, the BSE Sensex was up 0.37% at 80,796.84. The 52-week high of the stock was at Rs 304.70, and the 52-week low of the stock was at Rs 146.30. Zomato Ltd (officially Eternal) is a large-cap company with a market cap of Rs 2,26,059 crores, operating in the e-commerce sector.
Zomato Q4 Results 2025
- Revenue Growth: Zomato reported an 8% quarter-on-quarter (QoQ) and 64% year-on-year (YoY) increase in overall revenue for Q4 FY25, driven mainly by strong performance in the Blinkit quick commerce segment.
- Blinkit Performance: Blinkit’s Gross Order Value (GOV) grew 20% QoQ and a significant 134% YoY, showcasing rapid expansion.
- Food Delivery Segment: The food delivery business recorded a 16% YoY growth in gross order value, along with steady margin improvements.
- EBITDA Margin Impact: The company’s adjusted EBITDA margin declined due to increased investments in expanding Blinkit’s dark store network and customer acquisition efforts.
- Expansion Plans: Zomato aims to open 2,000 Blinkit stores by Q3 FY26, advancing its target by a full year.
Zomato’s management expects rising competition in the quick commerce space, which could increase marketing and operational spending, thereby putting pressure on near-term profitability. However, it projects PAT margins of 2.8% for FY26 and 5.2% for FY27.
Zomato Quick Shutdown
Due to poor customer service and operational issues, Zomato closed its 10-minute food delivery service, Zomato Quick, and is currently focusing fully on expanding Blinkit. Under its new IOCC structure, the company is converting Blinkit to a 100% inventory-led model and estimates that working capital requirements will remain below Rs 10 billion, or 5% of net order value. Due to a large investment in Blinkit, Zomato’s net profit fell 78% year over year to Rs 390 million in Q4 FY25. However, Blinkit’s revenue more than doubled, and its store count reached 1,301.
| Zomato (Eternal) Ltd | |||
| Motilal Oswal | |||
| Current Price Rs 239.90 | Rating BUY | Target Price Rs 260 | Upside 8.4% |
Zomato Fundamental Analysis
| Stock Name | Zomato Ltd. |
|---|---|
| Market Cap | ₹ 2,26,059 Crores |
| 52W High | ₹ 304.70 |
| 52W Low | ₹ 146.30 |
| Stock P/E (TTM) | 425 |
| Book Value | ₹ 31.4 |
| Dividend Yield | 0.00 % |
| ROCE | 3.18 % |
| ROE | 2.08 % |
| Face Value | ₹ 1.00 |
| Industry PE | 42.1 |
| Price to book value | 10.6 |
| Debt to equity | 0.07 |
| PEG Ratio | 19.7 |
| Quick ratio | 3.47 |
Zomato Technical Analysis
- 10-day Moving Average: Zomato’s price is above its 10-day simple moving average of ₹234.12, which generally indicates a bullish short-term trend.
- 50-day Moving Average: Zomato’s price is comfortably above its 50-day simple moving average of ₹220.96, suggesting a positive medium-term trend.
- 100-day Moving Average: Zomato’s price is slightly above its 100-day simple moving average of ₹236.62, indicating a bullish long-term trend.
- RSI (Relative Strength Index): Zomato’s RSI stands at 63.86, which indicates neutral momentum.
- Immediate Support and Resistance Levels: Zomato’s immediate support is around ₹225, while resistance lies near ₹248.55.
Also Read: Zomato Share Price Target 2025 to 2050.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
