Zomato share price target for 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Zomato share price target 2022, 2023, 2204, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term.
Zomato: Company Profile
Launched in 2010, Zomato is a technology platform that connects customers, restaurant partners, and delivery partners, serving their multiple needs. Customers use the Zomato platform to search and discover restaurants, read and write customer-generated reviews and view and upload photos, order food delivery, book a table, and make payments while dining out at restaurants.
On the other hand, Zomato provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last-mile delivery service. Zomato also operates a one-stop procurement solution, Hyper pure, which supplies high-quality ingredients and kitchen products to restaurant partners. Zomato also provides its delivery partners with transparent and flexible earning opportunities.
Zomato Share Price Target 2022
India’s food delivery Gross Order Value (GOV) in Q2 FY22 grew by 19% QoQ and 158% YoY to INR 54.1 billion ($721 million). This growth was driven by an increase in the number of transacting users, a number of active food delivery restaurants, and active delivery partners on the Zomato platform.
In line with GOV growth, Adjusted Revenue for India food delivery grew by 20.7% QoQ to INR 12.5 billion ($166 million). This represents 88% of the total Adjusted Revenue for our company in the same quarter.
Zomato can attribute a large part of the increase in transacting users (and adjusted revenue) to an increase in branding and marketing expenses. During Q2 FY22, Zomato invested an incremental INR 0.4 billion ($5.4 million) in branding and marketing as compared to Q1 FY22.
Most of these spent were on television and digital marketing. The idea was to capitalize on the COVID-led Q1 FY22 growth momentum and acquire more new users as well as get a large number of lapsed users back on the Zomato platform. While this resulted in its losses expanding further, Zomato believes this was a great opportunity to double down on expanding its user base cost-efficiently.
Zomato has a long way to go, compared to other nations like China and America, India is still way backward in the food delivery ecosystem, so we can clearly understand that there is a lot of opportunity for food delivery platforms to grow, with common sense we can simply understand, in future, no one will cook food in their house. Instead, everyone will use food delivery platforms like Zomato. By considering all these factors Zomato share price target for 2022 is Rs 88.
|Zomato share Price Target 2022|
Zomato Share Price Target 2023
Zomato mainstay food ordering and delivery business is an opportunity where Zomato expects huge shareholder value creation going forward. Zomato believes that the food delivery market in India is still nascent, and there is an opportunity to grow the market at least 10x over the next few years. In order to make this happen, Zomato is going to continue investing heavily in market creation, in addition to investing in ecosystem companies around its food delivery business so that the cost of running a better food delivery business goes down with time.
Zomato is currently in talks with various restaurant point-of-sale (POS) players, e-vehicle fleet operators, among others, to evaluate investments in these companies keeping the long term in mind.
Hyperpure is growing well, and Zomato is excited about what it can become. Zomato is building this business with first principles discipline and is planning to invest upwards of $50 million in this business over the next 18-24 months. Zomato will dive deeper into the growth and shape of its Hyperpure business in one of the shareholder letters in the next couple of quarters. As Zomato says, there is an opportunity to grow the market at least 10x over the next few years, Zomato share price target for 2023 is Rs 127.
|Zomato Share Price Target 2023|
Also read: HFCL share price target 2022, 2025, and 2030.
Zomato Share Price Target 2024
Zomato business today is at the confluence of food and hyperlocal e-commerce. What powers its business is the last mile hyperlocal delivery fleet, which is now 300,000+ delivery partners strong on a monthly active basis. Zomato believes that its last-mile fleet is a strong moat and it sets us up well for building one of the most meaningful hyperlocal e-commerce companies in India in the long term.
Zomato is bullish about the various use cases that it can plug its delivery fleet into, and Zomato thinks it can be the primary contender for building large businesses in hyperlocal e-commerce in India. Keeping this long-term view in mind, Zomato has started investing in hyperlocal e-commerce companies (including e-commerce enablers). Over time, the idea is to add multiple large core businesses to the existing core. considering all the above factors and Zomato entering into new core business segments, Zomato share price target for 2024 is Rs 168.
|Zomato Share Price Target 2024|
Zomato Share Price Target 2025
Within all the businesses that Zomato is looking at today, quick-commerce (delivery of products in less than 30 minutes) is clearly emerging as one of the most promising ones. While Zomato decided to not build quick-commerce on its platform, Zomato is excited about the progress of its partner company Grofers has made in the 10-min delivery space.
High online grocery penetration has remained elusive in India for the past 7-8 years but Zomato feels it might be finally witnessing the inflection point here with the widespread adoption Zomato is seeing in the 10-min delivery format. Zomato is likely to invest more in this space in the near term.
In addition to its planned investment in Curefit as mentioned earlier as part of the Fitso divestment, Zomato is making two new minority investments;
- Zomato have signed definitive documents for investing ~$75 million in Bigfoot Retail Solutions Pvt Ltd (Shiprocket) for a 8% stake as part of a larger $185 million round. Shiprocket is a B2B logistics-tech company that enables online commerce by providing seamless shipping and fulfillment services to direct-to-consumer (D2C) brands and omni channel sellers. It currently serves over 60,000+ brands and merchants across categories such as apparel, electronics, beauty and personal care, grocery, among others.
- Zomato has also signed definitive documents for investing $50 million in Samast Technologies Pvt Ltd (magicpin) for a ~16% stake as part of a total round size of $60m. magicpin drives omni-channel growth for local retailers. It has a network of 170,000+ paying merchants in categories including fashion, food, electronics, grocery, pharma, entertainment across 50 cities in India. Including its $100 million investment in Grofers earlier in August 2021, Zomato has now committed $275 million across 4 companies over the past six months. Zomato plans to deploy another $1 billion over the next 1-2 years, with a large chunk of it likely to go into the quick-commerce space.
Zomato is moving aggressively in its business and as well as in its investments and entering into new business segments, Zomato share price target for 2025 is Rs 230.
|Zomato Share Price Target 2025|
Also read: Infosys share price target 2022, 2025, and 2030.
Zomato Share Price Target 2030
After a hiatus of two years, Zomato has started launching food delivery in new cities again. Over the years, Zomato has seen the penetration of food delivery grow in emerging cities. To start with, these emerging cities are both demand and supply deficient but that changes once Zomato helps kick off the demand-supply flywheel in a particular city.
Zomato does this by incentivizing the customers to try restaurant food and once habit formation starts kicking in, zomato sees more restaurants opening up which in turn leads to more demand as customers get more choices. Over time, as this flywheel matures, Zomato will see rapid growth in the order frequency as well as the profitability of a particular city.
To substantiate this point further, Zomato sees a 30% higher ordering frequency and significantly higher Contribution margin in cities which have meaningfully higher restaurants per 100k customers metric.
Zomato is investing in seeding more of these emerging cities today and giving them enough time to grow into large and profitable markets for Zomato in the years to come. While Cohort B cities continue to grow rapidly (58% GOV growth over the past 2 quarters), their share of total GOV on the Zomato platform has shrunk by 2 percentage points in the same period as the pace of growth of emerging cities is much higher.
As we can clearly see, online food delivery is not available in many of the small cities and towns, this is a huge opportunity for online food delivery platforms like Zomato, in the initial years Zomato may burn huge cash to attract customers with offers and after it became a habit for the customer, Zomato can earn huge amounts, and also in future most the families will show interest to order from a restaurant rather than cooking in their home, by considering all these opportunities, Zomato share price target for 2030 is Rs 900
|Zomato Share Price Target 2030|
Also read: BHEL share price target for 2022, 2025, and 2030.
Zomato Share Price Target For 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|Zomato Share Price Target 2022||Rs 88|
|Zomato Share Price Target 2023||Rs 127|
|Zomato Share Price Target 2024||Rs 168|
|Zomato Share Price Target 2025||Rs 230|
|Zomato Share Price Target 2030||Rs 900|
Frequently Asked Questions
What is the future of zomato share?
Zomato is bullish about the various use cases that it can plug its delivery fleet into, and Zomato thinks it can be the primary contender for building large businesses in hyperlocal e-commerce in India. Keeping this long-term view in mind, Zomato has started investing in hyperlocal e-commerce companies (including e-commerce enablers).
Is Zomato share worth buying?
Yes, if you are thinking to hold for long term. As we can clearly see, online food delivery is not available in many of the small cities and towns, this is a huge opportunity for online food delivery platforms like Zomato, in the initial years Zomato may burn huge cash to attract customers with offers and after it became a habit for the customer, Zomato can earn huge amounts, and also in future most the families will show interest to order from a restaurant rather than cooking in their home