The share price of Zomato has fallen by 6% following the announcement of its Q4 results. Does this present an opportunity to buy the stock?
Zomato share price fell 6% in early trade on Tuesday after the company announced its Q4 results. Zomato shares declined as much as 5.98% to ₹182.10 apiece on the BSE.
The food delivery platform Zomato reported a consolidated net profit of ₹175 crore in the fourth quarter of FY24 as against a loss of ₹188 crore in the same period a year ago. The net profit grew 27% from ₹138 crore posted in the December quarter.
Zomato’s revenue from operations in Q4FY24 increased 73% to ₹3,562 crore from ₹2,056 crore, YoY. Gross order value (GOV) for the March quarter grew across B2C businesses rising to 51% YoY to ₹13,536 crore.
At the operating level, the company posted an EBITDA of ₹86 crore, an improvement from the loss of ₹226 crore incurred during the same period last year.
Zomato Q4 results : Net profit at ₹175 crore versus loss of ₹188 crore YoY : 5 key highlights
Zomato’s quick commerce arm Blink it achieved operational EBITDA break-even in March 2024.
Analysts maintained their bullish view on Zomato shares with some raising target price on the stock led by the continued outperformance of Blink it.
Here’s what analysts said on Zomato Q4 results and Zomato share price.
Emkay Global Financial Services –
Zomato posted steady operational results, with revenue ahead of Emkay GlobalX’s estimates whereas the margin miss was on account of higher-than-expected ESOP costs.
The brokerage firm has mostly retained FY26E earnings per share (EPS) estimates, but lowered FY25E EPS by ~20%, factoring in the slower profitability for Blink it on the aggressive store addition plan and higher ESOP costs.
