CLSA has maintained an Outperform rating on Zomato with a target price of ₹370, indicating a 32.1% upside. The brokerage compared Zomato’s performance with Swiggy’s recent results and highlighted Zomato’s strength in the quick commerce segment.
Key highlights from CLSA’s report:
- Quick commerce growth: Zomato (Blinkit) recorded 122% YoY growth in Q2 FY25, outperforming Swiggy’s 76%.
- Food delivery GOV: Zomato grew 21% YoY, higher than Swiggy’s 15%.
- Competitive dynamics: The gap between Swiggy and Zomato in food delivery has stabilized, but Zomato remains 81% larger in quick commerce GOV.
- Sequential improvement: Both companies showed similar QoQ growth of 6% and 5%, respectively, for food delivery.
CLSA views Zomato’s leadership in quick commerce as a strong differentiator while its food delivery segment shows competitive stability.
Disclaimer: These articles are for informational purposes only and do not constitute investment advice. Please consult a financial advisor before making any investment decisions.