With deep penetration in the Indian market, Zomato, an online food delivery company, has influenced the food technology business markedly. Before investing, it is crucial for an investor to look at Zomato’s share price, which helps determine the best time to invest. In this article, we will look into the Zomato Share Price Target for the upcoming years while analyzing its profitability and balance.
Table of Contents
About the Zomato Company
Zomato was initially a restaurant listing site. Moreover, it evolved into a food delivery platform, an online ordering system, and various other related services. The company’s business is to provide customers with a link to restaurants in urban and semi-urban centers using the application. Zomato was listed in July 2021, which is one of the biggest events in India’s startup space.
What is the Business Overview for Zomato India?
Zomato delivers from over 500 cities in India, several restaurants, and dozens of delivery guys. Food delivery is their primary operation along with dining out services, and Zomato pro, which is essentially premium access to several restaurants with an added facility of some of the best offers. The company also bought Blinkit, a grocery delivery service that is still growing rapidly and is an addition to its delivery arm. Recently, Zomato has also felt the heat from competition from some of its competitors such as Swiggy, but the company has so far continued to deliver well through innovation and market penetration.
Key Fundamentals of Zomato
Another reason used to determine Zomato Share Price Target potential is the finer points that concern the company’s fundamentals. Even though the company has not generated steady revenues and remains unprofitable, there is a clear increase in one-time revenues and overall growth of the total revenue after COVID-19 due to the shift toward online food delivery services. Key metrics include:
Market Capitalization: Currently, Zomato has a market capitalization, which directly depends on investors’ moods, like the majority of the tech shares.
P/E Ratio: Due to the fact that Zomato is not profitable, the P/E ratio is in the negative territory, which will not attract value investors with a reasonable risk profile.
Revenue Growth: it has been on the constant expansion of revenue with some of it growing more than 60% in certain years.
Debt Levels: Zomato has kept its’ leverage ratio relatively low and relies on equity to fund its expansion.
Operating Costs: The operating costs of the company, especially regarding delivery, are high and continue to hinder the potential of good profitability.
Market Cap | 183160 Cr |
Enterprise Value | ₹6,238,011 Mil |
52 Week High/Low | ₹298.20 and ₹101.20 |
Stock P/E | 409.95 |
Book Value | 23.11 |
Dividend Yield | 0.00% |
ROCE | – |
ROE | -333.51 |
Face Value | ₹1.00 |
Price to Book Value | 11.87 |
EPS | 0.68 |
Debt | ₹7.54 Billion
|
Promoters Holding
| 0.00% |
What will be the Financial Performance of Zomato?
The revenue position of Zomato has experienced changes, and while it reports growth, it also has its problems. In the financial year 2023, the company recorded its revenue to be INR 4,192 crores for which there are scopes of improvement compared to previous financial years.
Still, operational as well as net losses of the company escalated during FY 20 as the former reached INR 964 crore and the latter INR 971 crore. Although it delivers top-line growth that is still quite strong, profitability is a factor that provides more concerns to investors who are seeking such sustainable growth and stability.
Revenue | 4.21KCr |
Net income | 253Cr |
Diluted EPS | 0.28 |
Net profit margin | 6.02% |
What is the Share Holding Pattern for Zomato?
The latest shareholding structure of Zomato reveals that it is shared among institutional investors, Retail Investors, and Promoters. Some of the key shareholders are Ant Financial, Info Edge, and Uber Technologies. Micro investors are dominant players in the market and FIIs are the most active participants in the stock. The retail segment has a small exposure to the shares but has increased since the IPO of Zomato.
HOLDING | Sep 2024 | June 2024 |
Promoters Holding | 0% | 0% |
FII Holding | 52.5% | 54.1% |
DII Holding | 17.3% | 15.8% |
Public Holding | 28.8% | 28.6% |
Get Zomato Share Price Target 2024
By 2024, Zomato’s share will start fluctuating with the worst likely at 40$ as its bids to turn profitable begin to yield results. Given that Zomato delivers on enhancing operational efficiency and riding on the delivery services segment, the Zomato Share Price Target for the year 2024 could lie between INR 250-320.
Year | Price Target |
2024 | INR 250-320 |
Get Zomato Share Price Target 2025
In 2025, Zomato will leverage increasing B2C penetration in Tier-II and Tier-III zones due to increased technological adoption. It also could improve its grocery delivery services by acquiring Blinkit. As a result, the Zomato share price target 2025 can be between INR 300-350
Year | Price Target |
2025 | INR 300-350 |
Get Zomato Share Price Target 2026
It is expected that by 2026 the company’s international stores will begin to generate a profit. In other words, given a better expansion of the portfolio and logistics, it is to expect that the Zomato share price target 2026 will be Rs 330.79 and Rs 423.10.
Year | Price Target |
2026 | Rs 330.79 and Rs 423.10 |
Get Zomato Share Price Target 2027
By this year, 2027, since the advancement in delivery solutions by leveraging artificial intelligence and effective cost control measures, this figure for Zomato may reveal its operational growth. The possible Zomato Share Price Target 2027 will be in range of Rs 428.47 and Rs 530.78.
Year | Price Target |
2027 | Rs 428.47 and Rs 530.78 |
Get Zomato Share Price Target 2028
Based on its technological development and customer-centric strategy the Zomato share price target 2028 could reach ₹564.50.
Year | Price Target |
2028 | ₹564.50 |
Get Zomato Share Price Target 2029
There is potentially good news when Zomato gets closer to sustainable profitability by 2029. Due to the better work efficiency and vast market ratio, the target of Zomato share price target 2029 will be ₹876.17.
Year | Price Target |
2029 | ₹876.17 |
Get Zomato Share Price Target 2030
As for the prospects, in 2030, Zomato may strengthen its position in the food-tech segment, broaden its presence in other countries, and introduce new service solutions. They could hit the Zomato Share Price Target 2030 in the range of ₹959.45
Year | Price Target |
2030 | ₹959.45 |
Get Zomato Share Price Target 2035
Looking at its forecasted market shares Zomato will not only be competing for food delivery in India but in several countries across the globe. The Zomato Share Price Target 2035 will be around INR 620-690 given its expansion on an international level and adding services.
Year | Price Target |
2035 | INR 620 and INR 690 |
Get Zomato Share Price Target 2040
The food-tech industry of Zomato may eventually deliver a substantial share price in 2040 besides more acquisitions. This is evident in the Zomato share price target 2040 by INR 1000.
Year | Price Target |
2040 | INR 1000 |
Get Zomato Share Price Target 2045
The expected share price of Zomato in 2045 could be INR 1300, if the company manages to transform from a growth-stage firm to a profitable one and continue to maintain its leaders’ position in food delivery and relevant services.
Year | Price Target |
2045 | ₹1300 |
Get Zomato Share Price Target 2050
Zomato Gold, and other services that the company has started providing, are a source of steady cash inflows. The Zomato Share Price Target is ₹1500. The company could improve and diversify its subscription formats – offering additional privileges to users and thus again stimulating return revenue.
Year | Price Target |
2050 | ₹1500 |
Factors Influencing Zomato Share Price Target
Several factors could influence Zomato’s share price in the coming decades:
Market Competition: These contenders are already experienced competitors like Swiggy and other potential entrants could come and also capture significant market share from it.
Regulatory Changes: Policies and regulations regarding food delivery, employment or electronic commerce could significantly affect Zomato’s cost structure and profitability, hence share price.
Expansion into New Markets: With Blinkit for grocery deliveries, and possible future verticals and geographical expansions or cloud kitchen the revenue growth for Zomato is promising.
Technological Advancements: It will be quite key also for Zomata that it would be able to make use of logistics optimization techniques, automation and AI in particular in delivery operation in order to ensure both the reduction of cost as well as delivery of efficient customer satisfaction.
What will be the Future Growth Prospects of the Zomato Share Price Target Company?
- Quick-Commerce– Blinkit, recently acquired by Zomato, is a new entrant in the highly popular Quick commerce domain. This move is expected to give the companies a new revenue model that is not entangled with food delivery.
- International market expansion– While Zomato has mainly concentrated in India, extension into other international emerging markets is a great opportunity.
- Profitability Focus– The company is expanding on its efficiency and cutting down on the loss making approaches used in previous years.
- Subscription Services- Subscription services like Zomato Gold ( Zomato Pro) fetch a steady cash inflow to the company. Perhaps the company could still add additional subscription-based added values of service to its customers, to create more additional recurring income sources.
Conclusion
In essence, Zomato has established itself as a key enabler of the food delivery system in India. That is why everything is evolving constantly like growth in revenues, diversification, and the focus on profitability, which guarantees a rather successful future for Zomato. From the financial perspective, it may reach astonishing valuations by the end of 2045 and 2050, only if Zomato explores all its growth possibilities.
FAQs
₹270.65 is high and its low is ₹256.00
Zomato has not fully turned profitable, but they are indeed doing everything they can to cut losses and become profitable.
The primary opportunities for Zomato are Quick Commerce, Internationalisation, and Cloud kitchens.
It faces competition, profitability, and regulation that may affect the share price of Zomato.
It’s not certain. As per the optimistic analysis it has identified, Zomato could become a ₹5000 share price by the end of 2045 with growth and profitability. But however the target is around 1300.
Disclaimer
This article is just for information and education purposes. These predictions and statistics of share prices are just for educational purposes. We don’t recommend buying and selling any shares of the company. Investors are responsible for conducting research on share prices before investing in any share. We are not responsible for loss and damage arising while using this stock price content.
