Zomato - Wholesome Meal At A Deal: Motilal Oswal Initiates Coverage

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Growing internet penetration, rising consumption and urbanisation have driven online delivery adoption in India. A large internet user base (one billion by CY25E according to Redseer) combined with early stage of adoption – 9% of the population using internet (versus 36% for China/50% for the U.S.) – should ensure a long runway to growth. We expect India’s food delivery market to clock a rapid 19% compound annual growth rate over FY23-25 (versus slowing growth in other markets) fueled by growth in the number of transacting users and order frequency. This should lead to a higher share of online food ordering (24% by FY25E from 13% in FY21). Zomato Ltd. is a dominant player in the industry and we forecast the company to report 29% revenue CAGR over FY23-25. Though management expects it to be profitable latest by Q2 FY24, we believe the company should breakeven during FY25. We view the acquisition of Blinkit as an additional risk and high attrition at senior management level remains a concern.We expect strong growth to be complemented by the company turning profitable over FY25, despite elevated competitive intensity..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Zomato - Wholesome Meal At A Deal: Motilal Oswal Initiates Coverage

Expect breakeven in FY25.

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