Ask Profit |Zomato In Focus | NDTV Profit
-#Zomato shares rally, jump 14% after first quarter results.
-#Nifty, #Sensex trade near day's low
Get all your stock-related queries answered by our technical and fundamental guests with Hersh Sayta on Ask Profit. #ndtvprofitlive
-#Nifty, #Sensex trade near day's low
Get all your stock-related queries answered by our technical and fundamental guests with Hersh Sayta on Ask Profit. #ndtvprofitlive
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00:00Check on where the markets are at.
00:01You're seeing the Nifty 50 down around 0.8 odd percent.
00:05So there is some bit of pressure,
00:07but it's off the day's lows.
00:09So that accentuated pressure at the start of the day
00:12may be seeing a bit of recovery.
00:13We are above 24,800, but we are fluctuating nonetheless.
00:17It's a very range-bound market, 120 odd points
00:20is the band in which the Nifty 50 is trading at.
00:22Let's pull up the contributors, and there you'll see HDFC Bank
00:26single-handedly aiding the positives.
00:30You look at all of the other positives,
00:33pretty much all the others combined
00:34contributing to less than 10 points.
00:36HDFC contributing to nearly 50 positive points
00:39on the Nifty 50.
00:41Where the negatives are concerned,
00:43or the losers, the negative contributories,
00:46you're seeing ICICI, Reliance Industries,
00:48all the heavyweights coming and pushing on the index lower.
00:53You have 200 points down now on the Nifty 50.
00:56So that's currently the texture of the market.
01:00In terms of where the small and mid-cap
01:02or the broader markets are,
01:03let's pull up the advanced decline
01:05to just get a sense of what's happening
01:07with regard to the breadth of the market.
01:09The mid-cap index, of course, down around 0.6 odd percent,
01:13but the breadth not as bad.
01:15We're seeing, of course, some bit of negative on the breadth,
01:18but not as bad as one would think of it
01:21when we saw how global cues have come through.
01:24So that's currently the texture.
01:26Of course, specific names buzzing,
01:27but let's pull up,
01:29if we can quickly pull up the sectoral heat map,
01:32see which sectors have been buzzing.
01:35The Nifty Auto down 2.1, 2.2 odd percent.
01:38So that one's under some real pressure.
01:40Metals also under pressure, second consecutive day.
01:43And you're seeing realty stocks also under pressure,
01:45along with PSU banks.
01:47So plenty of sectors under pressure, IT too, one of them.
01:52The only couple of ones which are not seeing
01:55as much pressure,
01:56you're seeing the pharmaceutical, Nifty Pharma,
01:59doing decently on an otherwise tepid day of trade.
02:03But one stock which is in focus,
02:06and among all of the others that we'll discuss
02:09through this show, is Zomato.
02:12Of course, very strong numbers,
02:14Blinkit really pulling its weight for Zomato.
02:19Let's try and first break down those numbers,
02:21understand what brokerages are also perhaps saying,
02:24why this level of positivity, 12% higher.
02:27In fact, intraday, it was up over 18%.
02:30We go across to Mahima,
02:32who's gonna break that down for us.
02:34Right, Harsh, so you're absolutely right.
02:36Stellar set of numbers for Zomato in Q1 FY25.
02:40Just to break down the numbers, revenue is up 18%.
02:43EBITDA has significantly improved
02:44from that 86 crores to 177 crores,
02:47and net profit is up 45% QOQ.
02:50Now, overall, if you see the highlights,
02:52the food delivery business has grown around 12% QOQ,
02:56and around 45% YOY.
02:58And when we talk about the quick commerce,
03:00that is Blinkit, it has grown around 23% quarter on quarter,
03:04and it's grown 2.5 times as compared to FY24.
03:08Now, quickly about what brokerages are saying.
03:11Well, brokerages are pretty bullish on Zomato.
03:13The target prices range between,
03:17from 270 to almost 350,
03:19and pose an upside of 17% to 47% from yesterday's closing.
03:24Well, Citi on Zomato, well, it's posed a target price of 280.
03:28What it's saying is that it's yet another stellar quarter,
03:30and they've raised their gross order value estimates
03:33for food delivery by 1% to 2%,
03:35and for Blinkit by almost 18% to 16% going forward.
03:40What they're saying is that gross order value growth
03:42will be 20% for food delivery
03:44and 50% plus for the quick commerce business.
03:48And overall EBITDA growth of 55% CAGR
03:51is what they're expecting over FY25 to 27 estimates.
03:54Well, Nuwama is also bullish on Zomato,
03:57given a target price of 285, upside of 20%.
04:00They're saying that Zomato continues
04:02to deliver its promise of strong growth,
04:03and management is not dialing down on its growth ambition,
04:07as the management has guided
04:08that they will open 2,000 new dark stores
04:11by the end of calendar year 26.
04:14And what Nuwama is saying is that they now value
04:17the food delivery part at 14 billion US dollars
04:20and Blinkit at 13 billion US dollars.
04:23Access capital, again, is bullish on Zomato
04:26with a target price of 287.
04:27What they're saying is that they're raising
04:30the FY25 to 27 estimates top line by 7% to 12%,
04:34and they believe that Zomato execution is best in class.
04:38Lastly, CLSA has maintained outperform for Zomato
04:41and target price of 350.
04:43Now, this is the highest target price on Zomato,
04:46and they believe that it is clearing out competition
04:50in every which way for any other players in the industry.
04:53So this is the overall view of what Zomato,
04:55what brokers are saying about Zomato
04:57and how Zomato is performing.
05:08All right, thank you for that, Mahima.
05:11You know, let's go across to both of our guests.
05:14We have G. Chokalingam, founder and MD at Economics Research
05:17and we have Ayush Mehta, technical research
05:19and analyst at Nirmal Bang.
05:21Let me come to you first, Mr. Chokalingam.
05:25Talk us through what your key takeaways from Zomato are.
05:29Would you significantly stimulate
05:31the growth of Zomato in the future?
05:34And would you be willing to invest
05:36Would you significantly start to see
05:38Zomato currently trading at 260?
05:41How do you look at valuations as well as the numbers?
05:43Give us your perspective.
05:45Yeah, certainly.
05:46I mean, I am always a conservative in nature
05:48and I rightly said, the stock from 40 rupees to 260,
05:52it's almost nearly a thousand.
05:54Now, you know, it is trading at a trail,
05:57you know, trailing near around more than 200 PE.
06:00Assume that, you know, they maintain a 100% growth
06:03in revenue, 100% growth in profit for the next three years.
06:06It's difficult to grow business consistently 100%
06:10year after year, because the beauty of arithmetic
06:13limitation also will start playing out.
06:16That is a base effect.
06:16So, net to net, I find it difficult to, you know,
06:21give a buy call at this price.
06:29Okay, right.
06:31So, be conservative is the view coming in
06:34from Mr. Chokalingam with regard to Zomato,
06:36but clearly stock flying away in trade today.
06:40You know, let's quickly shift focus to queries.
06:43You know, I'm going to take the first one.
06:45Ramesh Prabhu from Mumbai holds 750 shares of RVNL
06:50at 139 rupees a piece.
06:53Mr. Chokalingam, let me come to you
06:55because what he's asking for...
06:57No, I would not suggest accumulation.
07:00He can hold on to it.
07:01If the stock rises further, he should profit
07:04because valuations are quite stretched.
07:07Okay, Ayush, let me come to you.
07:09So, first off, welcome.
07:11Secondly, we have Vriddhi Jain,
07:13who's holding 500 shares of HUDCO at 343 rupees a piece,
07:18asking whether she should hold or she should sell HUDCO.
07:22Well, HUDCO has shown some good rally
07:25from 280 to 220 levels,
07:27and then it went all the way to 350 levels.
07:28Now, it has regressed a bit from the higher levels.
07:31I would recommend to put a stop-loss here.
07:34292 is a very good, very strong support zone
07:37for this stock, which is 50-day moving average.
07:38As long as it is already 290, you should definitely hold it.
07:41But once the 290 is broken on the closing basis,
07:44then definitely you should exit from this stock.
07:46Okay, so 290 is the number he's looking at,
07:49Ayush is looking at.
07:51Mr. Chokalingam, we have Vinod from Chennai
07:53holding 100 shares of Jio Finance at 332 rupees a piece.
07:57Vinod, what's your outlook
07:59from a two-to-three-year perspective on this one?
08:02Oh, we have a coverage, we have a buy call,
08:04and we consider this Jio Financial
08:06as one of the most high-conviction stocks in our coverage,
08:10for simple two reasons, that it's a part of Reliance Group,
08:14and Reliance has never gone wrong
08:16in creating a new vertical
08:17and growing the size of the business.
08:19Second on the valuation,
08:21it is trading at around 1.6 times book value,
08:25if we consider the market value of Reliance shares
08:28held by Jio Finance.
08:30And I believe that it will become
08:33one of the biggest financial service industries form
08:37in the three to five years.
08:38And I believe that it can be a multi-bagger
08:41in three to five years,
08:42purely based on the valuation
08:44and the reputation of the promoters.
08:46And hence, I would give a strong buy recommendation
08:50on Jio Finance.
08:52Understood, Mr. Chokalingam.
08:53Now, we have Murthy from Vijaywada
08:56holding Infibeam shares.
08:57Ayush, I'll come to you on this one.
08:59He's holding Infibeam shares at 31 rupees a piece.
09:03Wants to understand whether he should hold or sell.
09:07Well, Infibeam is consolidating for quite some time now.
09:10It is following a range of,
09:12on the higher side, it is 33, 34 rupees,
09:14on the downside, it's 27, 28.
09:16The thing is, it is on the downward side right now.
09:18It has taken support of its 50-day
09:20moving average in British session.
09:22So, we can expect 33 rupees in that stock
09:25in the coming term.
09:26But around 33, 34, you should end with this stock.
09:29Okay, Mr. Chokalingam,
09:31we have Ravi holding 1,000 shares in Tata Steel
09:34at 174 rupees a piece.
09:37Wants to understand outlook.
09:38My guess is from a medium to long-term perspective.
09:41Commodity play down maybe 10% from his buy price.
09:46If he is willing to hold for two, three years,
09:48he can hold.
09:48Otherwise, in the short to medium term,
09:51I find the most stress for commodity plays.
09:54We have seen last couple of months,
09:56tremendous pressure on the realization
09:59on the entire basket of metal and steel products.
10:03So, therefore, if he's a short-term investor,
10:05it's good to sell.
10:06If he's willing to wait for two, three years,
10:08definitely he can hold on
10:09and he can accumulate on declines.
10:11Understood.
10:13I want to quickly stick with you, Mr. Chokalingam.
10:15Jay Shah holding 50 shares of Adani Ports
10:18at 900 rupees a piece.
10:20Of course, he's making a decent-ish profit on this one.
10:23Wants to understand your outlook from the longer term.
10:27For long-term, he can hold.
10:28Definitely, there is a lot of potential from port business.
10:32If he's willing to wait for two, three years,
10:33he can hold on to it.
10:35Understood.
10:36Okay, we are going to slip into a very short break.
10:38On the other side, we'll continue to take your queries,
10:40so stay tuned.
10:41You're watching Ask Profit on NDTV Profit.
10:44You're watching Ask Profit on NDTV Profit.
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12:55Welcome back.
12:56Thanks for staying tuned to Ask Profit.
13:00You can continue sending your queries on the number flashing at the bottom of your screen
13:04now.
13:05And we'll try to take as many as we can.
13:08Let me go back to Ayush.
13:10Ayush, we have Prabhu from Tamil Nadu holding 1 lakh shares of NCC.
13:15I'm not sure if I'm reading that right, but at least that's what he's suggesting.
13:20At 356 rupees a piece, should he hold sell?
13:24What should he do at this point?
13:25Are you talking about NCC?
13:26NCC has given a tremendous breakout over the years, forming a good higher-to-higher bottom
13:32formation.
13:33And currently, even in this market, it is holding itself well, so I think NCC should
13:37definitely hold.
13:38The minimum targets I'm seeing here is 375 for NCC.
13:43Okay, let me go across to Sivaraj from Pondicherry.
13:48He's also holding around 2,000 shares of BEL at 330 rupees a piece.
13:53Ayush, your views with regard to BEL, from a hold or a sell?
13:57We're talking about BEL.
13:59It has broken a 50-day moving average.
14:02So as long as it is holding 300 rupees, we should keep it as the strongest.
14:07Once it is below 300, then definitely it should exit from here.
14:11Any fresh rally in this stock will be seen only above 325 levels.
14:15Understood.
14:16Mr. Chokalingam, we have Srinu wanting to understand your outlook with regard to Yes Bank.
14:23Just give us a breakdown because the stock has seen a bit of a rally.
14:27There is, of course, the SBI stake sale also, which is coming into play.
14:31So there are plenty of moving parts here.
14:34Just give us your views from a medium-term perspective for Srinu's benefit.
14:38Certainly, it's a hold.
14:41And if it keeps declining from current levels, definitely one can buy for a couple of reasons.
14:47Even if SBI sells, I'm sure there will be a lot of takers for this bank stock
14:54because there is no depth of demand for all these big sales coming in the market we are seeing in the recent time.
15:01And fundamentally also, the bank has improved the quality of assets in the last two years.
15:06And in terms of valuation also, it's around 1.4, 1.5 times the price adjusted value.
15:13And therefore, it's quite attractive.
15:16So if it falls, one can definitely accumulate for medium to long term.
15:20Okay. Ayush, can I come to you with regard to the technical view on Yes Bank?
15:25Because this one, one has a lot of investor interest.
15:30And two, it's quite a big mover on most days.
15:33Well, talking about Yes Bank, Yes Bank has definitely formed a good base.
15:37From last two to three weeks, we have seen some selling pressure at 28 rupees levels.
15:42Approximately around 27 to 28 rupees.
15:45So that's the big resistance zone for Yes Bank.
15:48Yes Bank is certainly forming a pending pattern formation.
15:50Once it crosses 27 again, it's going to be a good rally in Yes Bank, which can take it again to 30-32 levels here.
15:57The downside support for Yes Bank is currently placed at 24 rupees.
16:01But there is one disclosure, me and my family is holding Yes Bank for the long term portfolio.
16:06Okay. Thank you for that.
16:08You know, Mr. Chokalingam, let me come back to you.
16:12Your outlook with regard to Teethagarh.
16:14Now this stock, 45% up year to date.
16:18When I'm looking at the one year chart, it's been blockbuster, 132%.
16:23So I want to understand from you both on valuations as well as on the future growth potential and execution for something like a Teethagarh.
16:34How should one look at a stock like this now?
16:37It's a good company, no doubt about it.
16:40Tracker card is good.
16:41But is it a good valuation? I have my own doubt.
16:44And secondly, the Raiblek Apex also is expected to grow only in a poor single digit.
16:50That would be slightly negative for such companies.
16:52So therefore, I would give sell call on Teethagarh Rail.
16:55Sell call on Teethagarh Rail.
16:57That's a query asked by Sujata Shinde.
17:00Let me move on.
17:01Anil Chaudhary from Mumbai holding 256 shares of Birla Soft at 726 rupees apiece.
17:08If I can come to you, Mr. Chokalingam, he wants a slightly longer term outlook from you on Birla Soft.
17:14Because this one, soft set of numbers and has been under pressure since the last few days.
17:20Yeah, it's a good company, no doubt about it.
17:22But I always look at two ways, mid-sized IT companies.
17:26Because a lot of mid-sized small companies were taken over in the last 10 years.
17:30And so I look at the enterprise value to annual revenues.
17:33So I'm normally comfortable if it is around two times.
17:37Similarly, the P ratio.
17:38So in both perspectives, the Birla Soft, even at this price, doesn't have valuation comfort.
17:44I would rather recommend a stock like Axalia Solutions.
17:48It trades around only 20-21 PE.
17:51And it is held by the world's largest private equity fund.
17:55And these funds are known for creating value addition in their own benefit.
18:01Because normally they don't become a permanent promoter of any company if they take over.
18:06So therefore, my uptick is on Axalia instead of Birla Soft.
18:11Understood.
18:12Anil, I hope you found that valuable.
18:14Because Birla Soft may not be the option, but you've got an option in Axalia Solutions.
18:19There you go.
18:20Now, let me shift focus to the technical side on Birla Soft, actually.
18:27Let me come to you, Ayush, because we've seen a 15% fall in the stock price in the last five days,
18:34where Birla Soft is concerned.
18:36How is this looking on charts and what levels should Anil monitor?
18:41Well, Birla Soft is looking weak at the charts currently.
18:44We have initiated a sell call on Birla Soft on 31st at around 780 levels.
18:49Initial targets were 670, which we had achieved also.
18:52But the charts are not looking very positive at the moment.
18:55The big support zone for Birla Soft is currently placed at 580 levels.
18:59So any bounce back is expected around 580 levels only.
19:03So I think you should exit if the holding is shut down.
19:07Okay, Ayush, I'll stick with you.
19:09Anil Gopal Reddy from Hyderabad wanting to understand
19:12whether he can make a trade in Union Bank from a shorter-term perspective.
19:16So how is charts for Union Bank looking?
19:19Well, Union Bank charts are not very attractive at the moment.
19:22It has broken 200-day moving average and there's no sign of reversal.
19:26A small 1-2-2, 1-2-3 rally is fine, but I don't see any good trade here at the moment.
19:32So Union Bank is in a void right now.
19:34So Chokalingam, we have Rajeev from Bombay
19:37wanting to understand long-term outlook on Jindal Saw.
19:42Great company, no doubt about it.
19:44One can hold on to it for the next 2-3 years.
19:47Okay.
19:49You believe that growth prospects look good, valuations also look good.
19:53If you can just give us some perspective, if at all, Mr. Chokalingam.
19:57Yeah, valuation, you know, 8 out of 10 small and medium-sized companies is not there at all.
20:02But then if you look at it, you keep missing the opportunity.
20:05Slightly strength, but then definitely this pipe company has done phenomenally well in the last 5 years.
20:11So therefore, PE will shrink in the next 2-3 years and definitely it is good to hold.
20:17Okay.
20:18Let me switch focus to you, Ayush.
20:20Ramakrishnan holding 500 shares of IOB at Rs.68 apiece.
20:24Wanting to understand from you whether he should hold, sell, what should he do with it?
20:29IOB is holding at Rs.168 apiece while it is currently around Rs.65 apiece.
20:34Well, the thing is, it is consolidating from points in time now.
20:38So I would recommend to put it to any stop-loss of Rs.60.
20:41If that is curved, then definitely it should exit.
20:45Above Rs.68, it's going to be a good rally, which can again take the stock towards Rs.75-80 levels.
20:51Okay.
20:52Mr. Chokalingam, I'll switch focus to you on the fundamental side.
20:54Narasimha from Hyderabad holding 7,993 shares of Varun Beverages at Rs.859 apiece.
21:03Long-term outlook is what he wants to understand from you.
21:06Should he continue to allow this compounding story to continue to play out or should he start cutting down?
21:12No, definitely it is a great growth story for long-term, no doubt about it.
21:18If he is willing to wait for 2-3 years, he can hold.
21:21Otherwise, if he is a short to medium term investor, he can sell it.
21:24And possibly if the stock falls even 10%, he can buy back.
21:29Okay.
21:30Now the next one is very interesting.
21:31I'll stick with you, Mr. Chokalingam.
21:33We have Saravanavasan from Madurai.
21:38I apologize for that slightly complicated name.
21:42Now holding around 23 shares of HAL at Rs.4611 apiece.
21:48So Rs.4,611.
21:50It's a tough one because HAL has risen to those levels of Rs.5,600-5,700 and then come off.
21:58What do you expect from a longer-term perspective both from a valuation as well as from a growth perspective?
22:06Mr. Chokalingam, please give your insights on this one.
22:09The long-term growth is already captured by the price.
22:13That's my strong view by HAL.
22:15I think he bought at a wrong price for long-term.
22:19The investors who are losing, definitely they can hold on.
22:22And possibly if they recover the cost, one can exit HAL.
22:27Okay.
22:28So exit HAL.
22:30But what is a good entry point then as per you in terms of valuation comfort?
22:34See, there are many…
22:36As I said, I'm really conservative.
22:39I don't compromise too much.
22:41I started compromising on the valuation at margin.
22:44We are forced to.
22:46But I don't want to compromise fully.
22:48So from that perspective, in POC space, I would give two stocks.
22:50One is Coal India.
22:52The other one is Balamalari Company.
22:54In Balamalari Company, we have also invested.
22:56These are the two PSU stocks I find amazing.
23:00Coal India got a graphite mineral mine.
23:04And also there was a proposal as per the media sources to list two subsidiaries engaged in cooking coal and research services.
23:12So they would be valuation-accurate.
23:15And it is trading at AP Coal India.
23:17And also 5% dividend ratio.
23:18And definitely for the next 10 years, the demand for coal is going to be robust.
23:23So this is one of the best stocks in PSUs according to me.
23:26And Balamalari Company is a logistic company still trading at 17-18 PE.
23:31I am surprised the way it is trading at 17-18 PE.
23:34It is a cash-rich company.
23:36It has got a joint venture in UAE which is doubling the profit every three years.
23:40And it is a huge asset because it is more than one-fifth year old.
23:44It has got logistic infra-assets in the country which are very huge.
23:48So considering all that, I find Balamalari in the small and mid-cap space,
23:53Coal India in the large-cap space has the best two PSU stocks in personal view.
23:58Okay, so speaking of PSU, speaking of power, we have Rajesh who owns 300 shares of Ireda at Rs. 270 apiece.
24:08Mr. Chokalingam, your advice for someone like Rajesh who is holding Ireda at Rs. 270?
24:13My research view is sell Ireda and buy stocks like Coal India.
24:20Okay, so that's your advice.
24:24Thank you so much both of you gentlemen because we are out of time on this one.
24:28Thank you Mr. Chokalingam.
24:30Thank you Ayush for joining us.
24:32And completely out of time on this show from myself and everyone who puts this show together.
24:37Thanks so much for watching.
24:39More on the other side. Stay tuned to NDTV Profit.
24:43Thank you.
25:13Thank you.
25:43Thank you.
26:13Thank you.
26:43Thank you.
27:14Hello and welcome. You are watching Hot Money and it's not a very interesting Friday afternoon.
27:22The markets are under some pressure on back of weak global cues.
27:25A weak handover from Wall Street led to Asian market selling off and D Street has followed suit.
27:30We are sub 25,000 today. In fact, trading closer to levels of 24,800.
27:35It's volatile and remaining to be in that range as we see it.
27:38The breadth of the market is also quite weak and there has been no significant recovery after what we saw in early trade.
27:45Well, in terms of what we see on top terms of movers this afternoon, morning or afternoon rather,
27:50you have got 40 stocks that are trading lower.
27:52You have got 10 counters that are trading with a small positive bias.
27:55Surprisingly, HDFC Bank is up 2% today.
27:58Kotak Manjro Bank is trading marginally higher.
28:00Dr. Reddy's, Asian Pates and Adani Ports are some of the few gainers in early trade.
28:04Well, on the sell side, Maruti is down 5%.
28:08So, autos are taking it to the chin on back of disappointing monthly sale numbers.
28:13Tata Motors reported earnings that were better than the street was expecting,
28:16but the markets don't seem pleased.
28:18Tata Motors also trading weaker.
28:20Ayesha, Tata Motors and Maruti make your top three losers in trade this afternoon.
28:25Metals aren't doing well either.
28:27So, apart from weak global cues, the fact that there could be a retrospective royalty
28:31that some of these metal majors or miners will have to pay
28:35is leading to a sell-off on the likes of Tata Steel and Hindalco.
28:40Tech is looking weak as expected.
28:42ONGC also trading with a negative bias.
28:45Across the broader markets, the picture is pretty much the same.
28:49The Nifty 500 trades with a cut of 0.7%.
28:53Your biggest loser is Cummins India, down 8% from the get-go this morning.
28:57Imami is trading down 5%.
28:58Birla Soft, Escorts, Capri Global, 361WAM
29:04are some of your top losers in the trading session.
29:07Well, on the winning side, the day for good reason belongs to Zomato, 12.5% higher.
29:13It already got a gap up this morning.
29:15It was higher by 7%, peaked somewhere around 11 o'clock
29:19and continues to trade higher with a gain of 12.5%.
29:22Numbers were good, brokerages are enthused
29:24and it generally seems like targets of 280 to 320 are doing the rounds on Zomato.
29:30But Mahima is standing by with more on that.
29:33Mahima, this has come out of nowhere.
29:35I still remember last quarter when Zomato reported earnings.
29:38The street was disappointed.
29:40The stock was languishing at 150 to 160.
29:44What a stark difference in this quarter.
29:46What's worked for them? What's changed?
29:48Right, Samina, so basically it's a stellar quarter for Zomato
29:53and overall, if we see, revenue has grown 18%.
29:57EBITDA has significantly improved from that 86 crore mark to that 177 crore.
30:02Margins have doubled from 2.4 to 4.2
30:05and overall, if you see, net profit has grown 45% QOQ.
30:10Now, this is, of course, numbers QOQ.
30:12A couple of things, the food delivery business has posted a growth of 12% QOQ
30:17and almost 45% YOY
30:18and Blinkit, which is a quick commerce, has posted a growth of almost 45% this quarter
30:26and overall, if we see, YOY has grown over 2.5 times.
30:31So I think Blinkit is something that is auguring growth for Zomato
30:35and which is why Zomato has turned profitable as well in the past 4 to 5 quarters.
30:40Overall, if you see, other segments are also doing very well.
30:44Dining Out Vertical also swung into operating profitability
30:48this quarter and food delivery contribution margins have slightly declined.
30:53However, the overall margins of the other segments have held the margins high.
30:59Now, in terms of monthly transaction users,
31:03for quick commerce, that is Blinkit, it has grown more than 100%
31:06and for food delivery, it has grown around 16%
31:09and gross order value for food delivery has grown around 10%
31:12and for quick commerce, it has grown around 4%.
31:14Now, management has guided that they are confident of doing the 20% growth on food delivery
31:20and overall, they are planning to add around 2000 dark stores,
31:24which is at present 639, by calendar year 26.
31:28So this is, you know, roughly overall reasons why Zomato is zooming in trade today.
31:35And that big launch, Mahima, of District is also going to be something
31:40that could potentially generate the delta for Zomato from year on.
31:44What do brokerages think? Where is the excitement?
31:47And what are the target prices during the rounds?
31:49Right. I mean, absolutely. So brokerages are pretty bullish on Zomato.
31:52You know, the price range is between 270 to almost 350.
31:56So that's, you know, the upside is ranging from that 17% mark to almost a 47% mark.
32:02To start with, Citi on Zomato, it's given a target price of 280
32:06and it remains their top pick.
32:08What they're saying is that they've raised their gross order value estimates
32:10for food delivery between 1 to 2% and same for quick commerce between, you know, 16 to 18%.
32:17They have also raised the CAGR growth for food delivery in gross order value by 20%
32:23and 50% plus for quick commerce and overall EBITDA CAGR growth,
32:28they are estimating at 55% over FY25 to 27 estimates.
32:33Nuama is also bullish on Zomato with a target price of 285.
32:35What they're saying is that they're now valuing the food delivery business at 14 billion US dollars
32:41and quick commerce at 13 billion US dollars.
32:44Access Capital again is bullish on Zomato with a target price of 287.
32:47What they're saying is that they're confident in quick commerce
32:50and they raised the top line estimates by 7 to 12% over FY25 to 27 estimates.
32:56And lastly, CLSA has maintained outperform with the highest target price so far
33:01amongst all the brokerages, which is 350.
33:03And they're saying that, you know, Blinket saw profitability improve
33:07despite a rapid acceleration in the dark stores.
33:10And what they're saying is that food delivery also in the middle game, but at a strategic edge.
33:15And they're raising their earnings estimates by 6 to 36% over FY25 to 27 estimates
33:22and target price is equal weighted blend of DC and, you know, of FY26 PE.
33:28And higher multiple for Blinket and food delivery and higher earnings for both
33:32is what the brokerage is estimating.
33:34So this is the overall view of what brokerages are making on Zomato.
33:38Thank you for that, Mehima. It's had a good run.
33:40It's had a very, very solid run.
33:42In fact, in the last one month itself, the stock is up 26%.
33:46Gorang Shah joins in now with his view on some of these counters that are buzzing in.
33:52Gorang, let's start with Zomato.
33:53This, for good enough reason, is the stock of the day.
33:5712% higher, 25% for the month, and a stark improvement in earnings
34:03from what we saw in the previous quarter.
34:05Looking ahead, do you feel like there's still some more room and steam left on Zomato?
34:10Samina, first of all, it's good to interact with you after a long time.
34:15Extremely long.
34:17Thank you very much for having me on the show and good noon to all of you.
34:20So, you know, Zomato has a history of its own.
34:24And if I am not wrong, and I stand to be corrected if I am,
34:29the IPO price for Zomato was somewhere close to about 76 rupees.
34:33After listing the stock again to the heights of about 140 plus,
34:38and then it corrected because numbers were not in line
34:42and there were concerns as far as the growth is concerned.
34:45The stock actually slipped below the IPO price.
34:47It made a low of about 50 to 60.
34:50So when the IPO was there, we had recommended a subscribe
34:53from a long-term point of view.
34:55After the highs that it saw, we advised the profit booking.
34:58Again, we initiated a coverage on Zomato somewhere around 60 odd rupees.
35:03And we are maintaining a positive coverage on Zomato as of now.
35:07I think what has worked for Zomato was in line with what our estimates were.
35:12And that was the contribution from Blinkit.
35:13That is the provisioning, daily provisioning platform
35:17that they are actively into.
35:20So on Blinkit, even if you are a gold member of Zomato,
35:24you have to pay your delivery charges along with platform fee.
35:29And on Zomato Gold, that is the food delivery platform,
35:33they have recently increased the platform fee.
35:36It started from 2 rupees.
35:38I think now it is somewhere close to about 6 or 7.
35:39So that has contributed to a great extent.