Zomato was listed on the Nation Stock Exchange (NSE) on July 23, 2021, at a price of 115 rupees. In just one year, the Zomato gave a massive return of more than 70%. Will it continue to provide such impressive returns in 2025 and in upcoming years as well? Let’s explore the Zomato share target price from 2025 to 2050 in this article.
About Zomato
Zomato was established in 2008. It uses its platform to link users with restaurants and meal delivery services. Zomato serves a variety of businesses, including foodservice and hospitality, and provides restaurant discovery, online ordering, and table reservation solutions.
Zomato Business Model
- Commission from Restaurants: Zomato charges a percentage of the order value from partner restaurants for facilitating food delivery.
- Delivery Fees: Customers pay delivery charges, which vary based on distance, order value, and location.
- Advertising and Subscription: Restaurants pay for featured listings and promotions. Additionally, Zomato Gold/Pro subscriptions offer exclusive discounts and benefits to customers.
- B2B Services: Zomato provides services like restaurant management tools and supply-chain solutions.
Zomato Fundamental Analysis
| Stock Name | Zomato Ltd. |
|---|---|
| Market Cap | ₹ 2,14,190 Cr. |
| 52W High | ₹ 305 |
| 52W Low | ₹ 132 |
| Stock P/E (TTM) | 323 |
| Book Value | ₹ 22.1 |
| Dividend Yield | 0 % |
| ROCE | 1.14 % |
| ROE | 1.12 % |
| Face Value | ₹ 1 |
| Share holder | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| FIIs | 54.61% | 55.11% | 47.31% |
| DIIs | 0.08% | 55.28% | 20.51% |
| Government | 0.00% | 0.00% | 0.03% |
| Public | 35.15% | 28.05% | 26.09% |
| No. of Shareholders | 19,10,058 | 19,16,416 | 25,20,804 |
Key Factors Driving Zomato Growth
- Expansion in Tier 2 and Tier 3 Cities: Zomato is focusing on smaller cities where online food delivery is growing rapidly, creating new customer bases.
- Diverse Revenue Streams: Apart from food delivery, Zomato earns through Zomato Gold, advertisement sales, and its B2B platform for restaurant supplies.
- Improved Customer Experience: Zomato is investing in faster deliveries, better packaging, and improved customer support to retain users.
- Cloud Kitchen Partnerships: Collaborating with cloud kitchens allows Zomato to offer more variety, helping restaurants expand their reach without added infrastructure.
- Focus on Sustainability: Zomato is pushing for eco-friendly practices like reducing single-use plastics and promoting electric vehicles for deliveries, which appeal to environmentally conscious consumers.
- Strong Technology and Data Analytics: Zomato uses AI and data analytics to optimize deliveries, understand customer preferences, and personalize experiences.
- Loyalty and Membership Programs: Zomato Gold and other subscription plans encourage repeat usage and drive customer retention.
- Strategic Acquisitions: Acquiring companies like Blinkit (for quick grocery delivery) broadens its market presence and revenue opportunities.
- Increasing Online Ordering Culture: As more people get used to ordering food online, Zomato benefits from this long-term shift in consumer behaviour.
- International Expansion: Zomato’s expansion into global markets has the potential to generate new revenue streams.
Pros of Investing in Zomato
- Sector Leader: Zomato has significant brand recognition and dominates India’s online meal delivery sector.
- Growing Industry: Zomato operates in a rapidly expanding market with rising consumer demand for food delivery services.
- Diverse revenue streams: Zomato revenue sources include commissions, advertising, subscriptions, and B2B services, assuring stability.
- Scalable Model: Zomato has an asset-light platform with the possibility for expansion into new markets and segments.
- Strategic Partnerships: Zomato works with restaurants, delivery partners, and worldwide investors to maintain growth.
Cons of Investing in Zomato
- High Competition: Zomato faces strong competition from rivals such as Swiggy and rising businesses, affecting market share.
- Profitability Concerns: Zomato struggles to maintain consistent profitability due to high operational and marketing costs.
- Regulatory Risks: Zomato faces some strict rules, including food safety, delivery rules, and evolving legal requirements.
- Customer Retention Costs: The company relies heavily on discounts and marketing to keep customers, which affect profitability.
- Delivery Partner Challenges: The company relies on gig workers, which increases the risk of employee dissatisfaction and high resignation.
| Years | Target Price |
|---|---|
| Zomato Share Price Target 2025 | ₹270 to ₹350 |
| Zomato Share Price Target 2026 | ₹320 to ₹460 |
| Zomato Share Price Target 2027 | ₹385 to ₹600 |
| Zomato Share Price Target 2028 | ₹460 to ₹780 |
| Zomato Share Price Target 2029 | ₹550 to ₹1000 |
| Zomato Share Price Target 2030 | ₹645 to ₹1430 |
| Zomato Share Price Target 2035 | ₹1290 to ₹4300 |
| Zomato Share Price Target 2040 | ₹2580 to ₹12900 |
| Zomato Share Price Target 2050 | ₹10000 to ₹40000 |
Conclusion
Zomato has experienced extraordinary growth in recent years due to its strong market presence and innovative business strategies.The company’s focus on increasing its delivery network and improving user experience puts it favourably in the constantly developing food delivery business. However, Zomato faces a number of difficulties, including intense competition, profitability pressures, and regulatory risks. Zomato, as a tech-driven platform, has considerable growth potential, but investors should be aware of its high volatility and changing market dynamics before making any decisions.
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.
Also Read: RVNL Share Price Target 2025 to 2050