Academic Research Project – Not a Recommendation

Equity Research Report

Zomato Ltd Recommendation : XXX
Intense Competition , will hurt Valuation Current Market Price : INR 202
About the Company Target Price : XXX
Stock Data (as on March 28,2025)
Zomato Ltd (hereinafter referred to as “Zomato” or “the Company”) is
Nifty : 23,519
an India-based technology-driven platform operating across multiple
verticals. The Company provides food delivery services, supplies food 52 Week H/L (INR) : 305 / 146
ingredients to restaurants through its B2B segment, and delivers Market Cap (INR Crs) : 1,94,648
essential products, including electronics. Additionally, Zomato has O/S shares (Crs) : 881.98
expanded into the "going out" segment, offering dining-out
Dividend Yield (%) : 0.00%
experiences, events, concerts, and shows, further enhancing its
ecosystem in the food and entertainment industry. NSE Code : ZOMATO
Relative Stock Performance – 1Y
1.Food Delivery - This allow customer to find local restaurants , order
food and deliver through there independent delivery partners. Nifty Index Zomato Index

2.Quick Commerce - The Company acquired Blinkit, Its platform where

delivery of products across multiple categories including daily
essentials, electronics, beauty & personal care, home décor, toys &
games, and general merchandise in less than 15 minutes. Customer
can order from Blinkit app which fulfilled through dark stores located
near 2-3 Km.

3.Hyperpure - It is B2B Platform where food ingredients and other

products deliver to restaurants and other B2B buyers. Where sources Absolute Return (%)
are generally from farmers , suppliers and Traders. 1 year : 35.52%
4.Going out - Is B2C business and it comprise of dining -out business 3 Year : 174.47%
and company recently buy Ticketing business from Paytm where 5 Year : NA
customer can book events ,concerts and shows.
Shareholding Pattern (as on Feb 11,2025)
Promoters : 00.00%
Valuation View –
FII : 47.31%
Based on the company and industry analysis, we draw attention on DII : 20.51%
the The food delivery business is still in a growing stage in India, with Government : 00.03%
a long runway for growth. With a dominant market share and strong
Public : 26.09%
growth in the food delivery business and Hyperpure,
Competition in the quick commerce segment will grow over the Others : 06.07%
period once other players start entering aggressive into the market.
The Blinkit market share will take the hit. Financial Summary
Therefore Current valuation of the company is not sustainable and In INR Crs FY 24 FY 25E FY 26E
stocks goes towards consolidation period unless otherwise expected. Net Revenue 12114.0 20310.0 30738.0
YOY Growth % 71.13% 67.66% 49.70%
Key Highlights – EBITDA 43.0 761.0 1686.0
EBITDA % 0.35% 723.81% 145.66%
 Topline growth remain strong at 58% YOY.
PAT -495.0 628.0 1460.0
 Bottom line ( EBITDA) grew 128% YOY but on QoQ basis lower by
14% driven by Investment in new dark stores and new customer YOY Growth % -4.09% 79.00% 132.40%
acquisition in quick commerce business. ROE -2.42% 3.00% 4.70%
 Blinkit stores count crossed 1000 store mark, now aiming to get EPS ( in INR) -0.56 0.70 1.60
2000 by end of Dec 2025, one year ahead of earlier guidance of
EV / EBITDA 475.14 598.00 240.00
Dec 2026.
 Muted 2% QoQ (17% YOY) GOV in food delivery this quarter driven
by slow down in consumption.
 Sharp rise in EBITDA margin by 4.3% Q3FY25 from 3.5 % in Prepared by – Akshay Laxman Kolekar
Q2FY25.
 Launches the all new District and Bistro Mobile apps.
Academic Research Project – Not a Recommendation

Zomato Ltd

Global Economy Global GDP Projection(%)

The Global economy is projected to grow 3.3% which below the
historical average of 3.7% It is primarily due to upward revision of -0.10% 1.90% 3.90% 5.90% 7.90%
United states and downward revision of other Major countries.
World
Global Inflation is anticipated to be decline but the risk of Tariff
Advanced Economies
war, Geopolitical uncertainties and wage and service cost is still
there.The US will also be a major global growth disruptor with Emerging Economics
regulatory, Immigration, trade and tax policy changes Euro Area
representing opportunities and risks worldwide.
US
In Europe, steady income growth and falling interest rates should China
drive stronger consumer spending growth and a modest recovery
Japan
in investment
UK
In Emerging markets are expected to maintain a steady growth India
rate of 4.1% in 2025, similar to 2024. In China, real GDP growth is
projected to slow to 4.5% due to structural challenges
Meanwhile, India is set to remain a key growth driver, with GDP
expected to expand by 6.4%, supported by public investment and 2024A 2025P 2026P
strong domestic demand.

Source : World Bank, EY Source : World Bank

India vs Global GDP Growth (%) Indian Economy

9.70% 9.20% India’s Q2 FY24-25 GDP grew at 5.4% YoY, below RBI’s 6.8%
6.50% 7.60% 6.50% projection, leading to a downward revision of the annual GDP
3.90% forecast to 6.6%. We see strong performance from Agriculture,
service sector and High value added export like electronics,
semiconductor and pharma. In contrast Mining and
2019 2020 2021 2022 2023 2024 2025 Manufacturing sector see weakness.

-5.80% Investment activity has been sluggish with gross Fixed capital
formation (5.4%) due to lower government capex however DII
India Global played a stabilizing role to reduce capital market volatility amid
global uncertainties.
Source : World Bank, IMF, RBI
On the corporate Side, Nifty 50 earnings growth is expected to
moderate to 14.7% in FY25 from the high levels seen in FY24. A
stronger earnings recovery is projected for FY26, driven by
India GDP Quarterly Growth - Actual vs
economic recovery.
9.00% Projected
Interest rate cuts in 2025, will lead inflation staying near the 4%
8.00%
target, could provide further support. Additionally, fiscal policies,
7.00% including personal tax cut in the FY26 budget, may boost
consumption. However, fiscal deficit constraints could limit the
6.00% government’s flexibility.
8.40%
7.80%

7.80%
7.70%
7.60%

5.00%
6.90%

6.80%

External risks, such as potential US tariff hikes under a possible

6.70%

6.70%

6.60%
6.50%
6.30%
6.20%

6.10%

4.00% Trump administration, also remain a key concern for India’s trade
5.40%

4.60%

outlook. Despite these headwinds, India stands to benefit from

3.00%
global policy shifts promoting the ‘China +1’ strategy, which may
2.00% boost the country’s supply chain.

Source : Economic outlook by UBS, Deloitte & Franklin Templeton

Actual Projected

Source : Investing.com
Academic Research Project – Not a Recommendation

Zomato Ltd

Global E-Commerce Industry Global E-commerce Industry

The Market size of global E- Commerce industry was estimated to 45.0
be USD 25.93 Trillion by 2030 and it is grow at 18.9% CAGR. User
penetration will be 42.4% in 2025 and is expected to hit 49.1% by 35.0
2029
25.0
The Significant boost in E commerce industry is due to change in 15.0
purchasing habits of consumer and increase in use of smartphone
,mobile technology that will help the customer to buy anything 5.0
from any location easily. In addition to this encrypted Technology 2024 2025 2026 2027 2028 2029 2030
and safe payment gateway has increased customer trust in online
shopping. Growth Rate in E-Commerce (%)
Social media play significant role in E-commerce because it lets
companies interact with their target market, highlight their India
goods, and increase traffic to their e-commerce websites trusted
recommendation by influencer and show personalised ads based Middle East & Africa
on browsing history ,interest and interaction. Customer spending
Europe
has been increased at the time of Festive season and when
economy in into expansion phase where consumption will boost Asia
the economy.
North America
Source : Statista, Mordor Intelligence
5.00% 10.00% 15.00% 20.00% 25.00%
Indian E-commerce Industry
India E-commerce Market US $
Billion The Indian e-commerce market is projected to grow from US$
123 billion in 2024 to US$ 292.3 billion in 2028, reflecting a
355 compound annual growth rate (CAGR) of 18.7%.

305 E-commerce in India has experienced phenomenal growth in last

255 five years, Due to covid Pandemic and increase in number of
smart phone users in India, internet access to Majority of the
205 18.7% Indian citizen. Another factor drive the growth is urban
155 household is convenient to the online shopping due to there busy
105 scheduled.

55 India is therefore one of the world’s most popular online retail

5 destinations. Major U.S. players such as Amazon, Walmart and
2021 2022 2023 2024 2025F 2026F 2030F Apple have already invested billions in the Indian market. The
government of India allowed 100% ownership in Indian E-
commerce companies. In addition, government initiatives such as
E-commerce Segment Digital India, Skill India and Start-up India are contributing to the
7.60% growth of the e-commerce sector. ONDC will enable e-commerce
8.20% platforms to synchronize search results on all the e-commerce
24.60% platforms and display products and services from every platform.
This will further boost business for MSMEs and help fuel India’s e-
8.30%
commerce growth.

11.70% The growth for the industry is triggered due to increase in use of
20.20% smartphone and internet. The number of internet connections in
2023 increased significantly to 895 million, due to ‘Digital India’
19.30% programme. Out of the total internet connections, ~55% of
connections were in urban areas, of which 97% of connections
Electronics Books & Stationary
were wireless.
Fashion Furniture & Homeware
Grocery Healthcare
Others Source : Statista, IBEF

Source : Ecommerce Insights, Statista , IBEF

Academic Research Project – Not a Recommendation

Zomato Ltd

Indian Quick Commerce Industry

Market Share %
The Quick commerce industry in india expanding rapidly
and disrupt the unorganised Kirana stores. The market was
valued at approximately USD 3 billion in CY23 and is
7%
experiencing exponential growth of 38.95% CAGR. Analysts
predict this growth will continue, with estimates
suggesting the market could reach USD 40 billion by CY30. 21%
46%
Quick commerce in india distributed wide range of
products, Initially focusing on Daily essential but now
expanding into Grocery and perishable, Household and
personal care, snacks, electronic item, home decor and pet 27%
food etc. QC platforms utilise technology and strong on-
ground execution, operating primarily in high-density,
tech-savvy urban areas, with the potential to expand to the
top 30-40 cities in the country. The business model Blinkit Instamart Zepto Big Basket
required operational Synchronised between sourcing,
Distribution, warehousing, Inventory Management, dark
store operation and Logistics.
Total Market in Billion
The Competition has increased over the period and there
are more than 10 active players in the industry. Blinkit is 40
the Leading position with market share of 46% followed by 35
Instamart 27%, Zepto 21% and Big basket 7%.
29
38.95% 24
The QC model addresses several challenges in urban India,
including, small-ticket purchases, the need for speed and 19
convenience that bypasses long journeys to supermarkets, 14
the limited choice available at neighbourhood kirana 8
stores, the lack of significant discounts, restricted 3
operating hours of traditional stores

Dark stores which is like supermarket located in strategic 2023 2024 2025 2026 2027 2028 2029 2030
area to cover 2-3 Km radius which is support by mother
warehouse situated outside of City. Dark stores carry
6000+ SKU compared to kirana stores of 1000+ SKU. A
mother warehouse support 30-40 dark stores within city. AOV have increased in last 2 Years
All procurement made through brands and distributors are
first arrive at mother warehouse then it was distributed to 635
Dark stores once or twice a day. Mother wharhouse can
range from 20000 Sq.ft to 175,000 sq.ft in area. 528
450 450
425
Competition in the quick commerce industry in India has 375
evolved significantly However, the intense competition and
challenges associated with the business model led to a 275
consolidation in the market. While the current market is
dominated by four players and quick commerce expand
there operation into non grocery category this will attract
the attention of E-commerce players.

Zepto Instmart Blinkit BB Now

2 Yr Back Current

Source : JM Financial Industry report

Academic Research Project – Not a Recommendation

Zomato Ltd

Quarterly Results Analysis – Q3FY25 and Q2FY25

 Market and Competition Insights:

 Quick Commerce Developments:
No material impact from competitive activities in short-
Average Order Value (AOV) for Blinkit increased from ₹660
duration food delivery on Zomato's core restaurant
to ₹700, mainly due to Diwali seasonality and higher-priced
aggregation business.
categories like electronics.
Seasonal factors and festivals influence demand; growth
The company's strategy involves opening larger dark stores
momentum expected to stabilize.
and enhancing infrastructure for better customer
Quick commerce competition is increasing, with notable
experience.
players like Flipkart entering the space.
Blinkit is expanding into new categories (beauty,
Akshant Goyal emphasizes focusing on Zomato's own
electronics, toys) and is focused on building out backend
business rather than predicting competitive outcomes.
and customer experience.
The company is operating at full capacity with a year-on-
year growth of 120% to 130%.
 Expansion Strategy:

The board has passed a resolution to raise up to $1 billion,

subject to market conditions and shareholder approval.
 Customer Retention Strategies:
The fundraise is aimed at strengthening the balance sheet
rather than increasing discounting aggression.
There is a decreasing overlap between quick commerce
Accelerated store additions are a result of improved
and food delivery demographics, indicating broader appeal
organizational bandwidth rather than a competitive
for quick commerce.
response.
New categories and SKUs are expected to attract a wider
80% of business still concentrated in top 8 cities, but
audience, although the top SKUs still dominate GMV.
healthy traction in smaller cities observed; ROI in these
Retention rates remain strong, with a focus on service
areas appears attractive.
quality rather than subsidies to retain customers.
Zomato is strategically launching in new cities while
Increased competition anticipated to raise digital
assessing market viability and depth.
marketing costs, but retention strategies focus on service
152 new stores and seven new warehouses were opened,
improvement.
with the majority of capex allocated to this expansion.
Focus remains on the top eight cities while cautiously
venturing into newer markets.
Company not operating with a fixed budget for expansion  Future Outlook:
at this point, given that the market is very large, and we
clearly see a first-mover advantage in reaching consumers Management expresses optimism about profitability
first. Therefore, They scale as fast as they can. improving as store maturity increases and operational
efficiencies are realized.
 Profitability Confidence: Continuous focus on maintaining market share while
optimizing margins without compromising service levels.
Mature stores are generating healthy contribution margins, Management remains optimistic about growth despite
providing confidence for continued expansion. potential economic slowdowns, with no visible impact on
Investments in newer stores with lower utilization are food delivery business.
impacting overall profitability but are expected to The approach to discounting is cautious; management does
normalize as store maturity increases. not plan to increase discounting even with the capital raise.
Delivery costs and platform fees are key drivers for food Profitability is expected to improve as the learning curve in
delivery margins. quick commerce continues to flatten.
Optimizations across delivery costs and consumer fees are
expected to contribute to margin expansion, with a target
of reaching 5% margins in the coming quarters.
Source : Company Analysis.
 Take Rate Dynamics:

Take rate fluctuations are attributed to product mix; higher

sales of lower-margin categories (e.g., electronics) in
Q3FY25.
Academic Research Project – Not a Recommendation

Zomato Ltd

Management Analysis

Below are the details and Experience of Independent Director

Sr No Name Designation About

1 Kaushik Dutta Chairman & He is co-founder of Thought Arbitrage Research Institute, an independent not-for-profit research
Independent think tank working in areas of corporate governance, public policy and sustainability. He was also
Director associated with Price Waterhouse & Co., Chartered Accountants LLP, and Lovelock & Lewes,
Chartered Accountants as Partner for over 25 years.
He has been retained as an expert on corporate governance by the Indian Institute of Corporate
Affairs of the Ministry of Corporate Affairs
He is a fellow member of the Institute of Chartered Accountants of India
2 Sutapa Banerjee Independent She spent 24 years in the financial services industry across 2 large multinational banks (ANZ
Director Grindlays and ABN AMRO), and a boutique Indian Investment bank (Ambit)
Currently she serves as an Independent Director on the boards of Zomato Limited, Godrej Properties,
Polycab Industries, JSW Cement, Axis Capital, Manappuram Finance, Camlin Fine Sciences and
Niyogin Fintech
A well recognized thought leader in the Wealth Management space having headed and successfully
built from scratch the Private Wealth businesses in both ABN AMRO Bank and Ambit Capital
Sutapa is a gold medalist in Economics from the XLRI school of Management in India, and an
Economics major from Presidency College Kolkata.
3 Namita Gupta Independent She previously worked with Facebook, Inc. and Microsoft for several years. She is the founder and
Director currently on the board of directors of Airveda Technologies Private Limited?.
She holds an integrated master’s degree of technology in mathematics and computing from the
Indian Institute of Technology, Delhi.
4 Aparna Popat Independent She holds a bachelor’s degree in commerce from the University of Mumbai and a master’s degree of
Ved Director business administration from the Sikkim Manipal University.

5 Gunjan Tilak Raj Independent She is currently the chief executive officer of Zalora Group.
Soni Director She also has an extensive experience across various roles in Myntra Jabong India Private Limited, Star
India Private Limited and Mckinsey & Company, Inc
Gunjan Tilak Raj Soni holds a post graduate diploma in business management from XLRI, Jamshedpur
and abachelor’s degree in engineering in computer sciencefrom the Barkatullah Vishwavidalaya,
Bhopal

Below are the details and Experience of Management

Sr No Name Designation Info

1 Albinder Singh Founder & Albinder hails from Patiala in Punjab. He completed his Bachelor's program at IIT Delhi and started
Dhindsa CEO - Blinkit his career as a transportation analyst at URS Corporation, where he worked for 2 years. Later, he
joined Cambridge Systematics as a Senior Associate and worked for more than 3 years. In 2010, he
went to the University of Columbia, United States, to pursue his MBA.Mr Albinder Dhindsa joined
UBS Investment Bank as an associate and worked for 3 months. After completing his MBA, he
returned to India and knew he wanted to work in the food domain. He entered the Indian workforce
as the new Head of International Operations at Zomato

2 Akshant Goyal Chief Akshant has been instrumental in shaping the company's financial strategies and driving its financial
Financial performance. His leadership and expertise have been particularly evident during his tenure as Head
Officer of Corporate Development, where he contributed to the company's strategic initiatives and played a
key role in its growth and expansion. Before joining Zomato, Akshant Goyal co-founded a fintech
startup focused on providing unsecured short-term loans for SMEs. He also gained valuable
experience in investment banking as Vice President at Kotak Investment Banking, where he was
involved in various financial transactions and advisory services. Akshant Goyal's educational
background includes a Master of Business Administration (MBA) from the Indian Institute of
Management Bangalore and a Bachelor of Engineering (B.E.) in Computer Science from Delhi College
of Engineering. His blend of financial acumen, strategic thinking, and entrepreneurial spirit makes
him a valuable asset to Zomato's leadership team
Academic Research Project – Not a Recommendation

Zomato Ltd

Management Analysis

Below are the details and Experience of Management

Sr No Name Designation Info

3 Rakesh Ranjan CEO - Food CEO of its food ordering and delivery business. Earlier, Rakesh was working as the business head at
Ordering and Zomato. He joined Zomato as the Global Sales and Operations Head for the food delivery business
Delivery Before joining Zomato, Rakesh worked with Boston Consulting Group (BCG) as the project leader
Business and worked across multiple sectors with a focus on business turnaround, growth, portfolio
strategy, and large-scale organization-wide transformation. He has also been associated with two
portfolio firms of Blackstone as the business manager where he was responsible for growth
(horizontal across the value chain) and new markets. Rakesh has also worked as a Principal
Consultant with the Price water house Coopers (PwC) in its strategy vertical. A post graduate from
Indian School of Business in Finance and Marketing, Rakesh has been a receiver of scholarship of
merit. He has his bachelor’s degree in electronics from Netaji Subhash Institute of Technology.

4 Rishi Arora CEO - Hyperpure Rishi Arora, who has been heading operations at Blinkit for over eight years, is recently being
promoted as the cofounder of the quick commerce platform. And now as a CEO of Zomato
Graduated from IE business School
5 Rinshul COO - Food Rinshul Chandra is an accomplished professional with extensive experience in leadership roles
Chandra Ordering and across various sectors. Currently serving as COO of Food Delivery at Zomato since June 2018,
Delivery Rinshul has played a pivotal role in steering driver logistics and consumerfacing products for
Business Zomato's online ordering business. Prior to Zomato, Rinshul was a founding team member and
Head of Product & Content at magicpin, a startup focused on enhancing local experiences in offline
retail. Rinshul's earlier career includes positions at Shell as a Process Engineer, and multiple roles
within the Entrepreneurship Cell at IIT Kharagpur, contributing to corporate and media relations
and overall student welfare. Rinshul holds a dual degree in Chemical Engineering from the Indian
Institute of Technology, Kharagpur.

Commentary

The company has strong management with great experience and technical expertise in the field of E-commerce.
In addition to this, the independent directors come from diversified industries and include dignified professions
such co-founder of Thought Arbitrage Research Institute, EX-expert on corporate governance by the Indian
Institute of Corporate Affairs of the Ministry of Corporate Affairs, Financial Industry experience and leaders from
wealth management etc. but we want highlight that some of the independent director are not hold enough
qualification or Industry experience to contribute there expertise in this Company.

Based on publicly available data, we do not find any prominent political connections of leadership and
independent directors with national and regional political parties. Further, we do not find any conflict of interest
of independent directors with the company, as reported.

Deepinder Goyal is the Founder, Managing Director and the Chief Executive Officer the Company. He is appointed
as the Managing Director and Chief Executive Officer of the Company for a term of five years with effect from
March 24, 2021.

Zomato's management is well-positioned to navigate the complexities of the food-tech and quick-commerce
industries. The team's ability to leverage technological innovation, being flexible , manage costs, and capitalize on
emerging market opportunities will determine the company's future trajectory. By focusing on building
operational efficiencies, enhancing customer satisfaction, and maintaining good governance, Zomato's leadership
can continue to thrive despite the challenges posed by a dynamic and competitive market. The company has a
strong leadership team with a diverse range of background.

Source : Company Analysis

Academic Research Project – Not a Recommendation

Zomato Ltd

Commentary
Shareholding Pattern

The company is promoter less company with majority of shareholder is FII and DII. As of Dec 2024, FII holding are 47.31% , DII
are holding 20.51% and Public holding are 26.09%. The founder Mr Deepindar Goyal and initial investor Info edge are holding
3.83% and 12.38% respectively. In the recent quarter we see selloff from FII in overall market and Zomato is not an exception
,FII unwind there position from 52.53% to 47.31% but DII has increased stake to 20.51% from 17.32%. There is been increase
in government stake by 0.03% which is not significant but the public shareholding has been decrease significantly over the
period it and smart money is moving funds into Zomato

Yearly and Quarterly Shareholding pattern is as under:

Particulars
Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24
FIIs 10.44% 9.98% 57.87% 56.74% 54.61% 54.43% 54.72% 54.88% 55.11% 54.11% 52.53% 47.31%
DIIs 3.05% 2.62% 6.41% 7.43% 8.04% 9.93% 13.04% 15.47% 15.28% 15.79% 17.32% 20.51%
Government 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.03%
Public 83.60% 84.59% 33.24% 33.57% 35.15% 33.56% 30.42% 27.98% 28.05% 28.64% 28.86% 26.09%
Others 2.91% 2.81% 2.48% 2.26% 2.22% 2.09% 1.82% 1.66% 1.58% 1.45% 1.27% 6.07%

Particulars
Mar-22 Mar-23 Mar-24 Dec-24
FIIs 10.44% 54.61% 55.11% 47.31%
DIIs 3.05% 8.04% 15.28% 20.51%
Government 0.00% 0.00% 0.00% 0.03%
Public 83.60% 35.15% 28.05% 26.09%
Others 2.91% 2.22% 1.58% 6.07%

FII vs DII Holding Pattern Info Edge vs Deepinder Goyal Holding

70.00% Pattern
60.00% 17.00%

50.00% 15.00%

40.00% 13.00%
11.00%
30.00%
9.00%
20.00%
7.00%
10.00%
5.00%
0.00%
3.00%
Jun-22

Dec-22

Jun-23

Dec-23

Jun-24

Dec-24
Mar-22

Sep-22

Mar-23

Sep-23

Mar-24

Sep-24

1.00%
Jun-22

Dec-22

Jun-23

Dec-23

Jun-24

Dec-24
Mar-22

Sep-22

Mar-23

Sep-23

Mar-24

Sep-24

FIIs DIIs

Info Edge (India) Limited Deepinder Goyal

Source : Trendline, Screener Source : Trendline, Screener

Academic Research Project – Not a Recommendation

Zomato Ltd

Commentary
Management Remuneration
Basis our research we found that company has sound remuneration policy for its executive & non executive director, During FY24, The
company has incurred remuneration 2 Cr whereas last year the amt is 1.72 cr. We see increase in remuneration by 14% but the sales
number has been increase by 71.13%. The overall median remuneration of employees has been reduced by 16.8% during the Financial
year.

Zomato's top executives, MD & CEO Deepinder Goyal and CFO Akshant Goyal, have voluntarily waived their salaries for a significant period.
Mr. DeepinderGoyal has waived his pay since April 2021 for a period of 36, while Mr. Akshant Goyal has waived since January 2022.

Amt in Cr.

Designation Ratio of FY24 FY23 Growth in Growth in

Name of Directors Remuneration to Remunerati Sales
the median on
remuneration
Non-executive director
Non-Executive and Independent
Kaushik Dutta Director 2.82X 0.24 0.24 0.0% 71.13%
Non-Executive and Independent
Aparna Popat Ved Director 2.82X 0.24 0.24 0.0% 71.13%
Non-Executive and Independent
Gunjan Tilak Raj Soni Director 2.82X 0.24 0.24 0.0% 71.13%
Non-Executive and Independent
Namita Gupta Director 2.82X 0.24 0.24 0.0% 71.13%
Non-Executive and Nominee
Sanjeev Bikhchandani Director - - - - 71.13%
Non-Executive and Independent
Sutapa Banerjee Director 2.82X 0.24 0.24 0.0% 71.13%
Executive director and key managerial
personnel
Managing Director & Chief
Deepinder Goyal Executive Officer - - - - 71.13%
Akshant Goyal Chief Financial Officer - - - - 71.13%
Company Secretary and
Sandhya Sethia Compliance Officer 9.41X 0.8 0.52 53.8% 71.13%
Total 2.00 1.72

Board Efficiency
Basis our research, Board of Director (BOD) has adequate representation if Independent director, Industry Experts, Finance and Legal
experts as required by the statue. The company has been supervised by the board efficiently as the majority of the board have attended all
the board meeting which show good participation by board in Key matters discussed during FY24.

The Efficiency of BOD can be gauged with the contribution in various important meetings held in FY24. the Details are as follows.

Number of Meeting
Attendance of Last
Name of Director Designation Held Present AGM
Kaushika Dutta Non-Executive and Independent Director 6 6 Present
Aparna Popat Ved Non-Executive and Independent Director 6 6 Present
Deepinder Goyal Managing Director & Chief Executive Officer 6 4 Present
Gunjan Tilak Raj Soni Non-Executive and Independent Director 6 6 Present
Namita Gupta Non-Executive and Independent Director 6 6 Present
Sanjeev Bikhchandani Non-Executive and Nominee Director 6 5 Present
Sutapa Banerjee Non-Executive and Independent Director 6 6 Present
Academic Research Project – Not a Recommendation

Zomato Ltd

Annual Financial Snapshots

Particulars FY18A FY19A FY20A FY21A FY22A FY23A FY24A FY25E FY26E
Revenue 466 1,313 2,605 1,994 4,192 7,079 12,114 20,310 30738
YoY growth % 181.76% 98.40% -23.45% 110.23% 68.87% 71.13% 67.66% 51.34%
Expenses 558 3,556 4,909 2,461 6,043 8,290 12,071 19,549 29,052
Operating Profit -92 -2,243 -2,305 -467 -1,851 -1,211 43 761 1686
Other Income 21 1,285 16 -200 793 682 846 944
Interest 6 9 13 10 12 49 72 118
Depreciation 29 43 84 138 150 437 526 716
Profit before tax -107 -1,010 -2,386 -815 -1,220 -1,015 291 628 1460
YoY growth % 843.93% 136.24% -65.84% 49.69% -16.80% -128.67% 115.81% 132.48%
PBT Margin % -22.96% -76.92% -91.59% -40.87% -29.10% -14.34% 2.40% 3.09% 4.75%
Tax - - - - - 40.60 -61.11 - -
Net Profit -107 -1,010 -2,386 -816 -1,222 -974 352.11 628 1460
YoY growth % 843.93% 136.24% -65.80% 49.75% -20.26% -136.14% 78.35% 132.48%
NP Margin % -22.96% -76.92% -91.59% -40.92% -29.15% -13.76% 2.91% 3.09% 4.75%

Quarterly Financial Snapshots

Particulars FY24Q1 FY24Q2 FY24Q3 FY24Q4 FY25Q1 FY25Q2 FY25Q3
Revenue 2,416 2,848 3,288 3,562 4,206 4,799 5,405
QoQ growth % 17.88% 15.45% 8.33% 18.08% 14.10% 12.63%
Expenses 2,464 2,895 3,237 3,476 4,029 4,573 5,243
Operating Profit -48 -47 51 86 177 226 162
Other Income 181 212 219 235 236 221 252
Interest 18 16 18 20 25 30 43
Depreciation 130 128 128 140 149 180 247
Profit before tax -15 21 124 161 239 237 124
QoQ growth % -240.00% 490.48% 29.84% 48.45% -0.84% -47.68%
PBT Margin % -0.62% 0.74% 3.77% 4.52% 5.68% 4.94% 2.29%
Tax 16.95 -14.91 -13.64 -14.49 -14.34 61.62 64.48
NP 2 36 138 175 253 175 60
QoQ growth % 1741.54% 283.29% 27.50% 44.36% -30.77% -66.06%
NP Margin % 0.08% 1.26% 4.19% 4.93% 6.02% 3.65% 1.10%

Based on Q3 of FY25, The company Revenue has been grew by 12.63% QoQ , Out of that “Going- out” segment contribute on
an average 68% growth and “Quick commerce “ contribute 21% In addition to this YOY basis , two segment outperformed
from other segments as 255% and 117% respectively.

Source : Screener, AR , Consensus Estimate

Academic Research Project – Not a Recommendation

Zomato Ltd

Commentary

Revenue
Segment wise Revenue %
For FY24,Zomatos Major revenue comes are Food Delivery ( 0.16%
57.53%) , Quick commerce (16.99%), Hyper pure (23.42%) 23.42%
and rest are not that significant.
1.90%
Over the past Five Quarters, Revenue has been consistently 57.53%
increasing reflect higher Gross order value and now 16.99%
impressive Q3FY25 now its touch to all time high revenue
of 4,318 cr. On an average company has booked the 60-
70% revenue growth year on year basis. Food Delivery Quick Commerce Going-out
Hyperpure Others
Quick commerce and Hyper pure is the key growth driver
for increase in revenue while food delivery business is
showing sluggish growth .
Revenue INR Crore
As company is aggressively expanding, The challenges lies 3025
to maintain this aggressive growth in the high competitive
2525
environment. Despite high growth segment quick
commerce there are many headwinds for this segment like 2025
Capital intensive segment, high cost of customer acquisition 1525
and intense competition from other players in this segment
1025
525
EBITDA INR Crore 25
1000 Q3F24 Q4FY24 Q1FY25 Q2FY25 Q3FY25
800 Food Delivery Quick Commerce
600 Going-out Hyperpure
400
200 Margin
0
Food Quick Going-out Hyperpure Others Zomato has taking significant steps towards improving its
-200
Delivery Commerce margin profile, reflecting to move for profitability. For Q3
-400 FY24, the company reported an adjusted EBITDA of ₹110
-600 crore, a substantial improvement from ₹(346) crore in Q3
FY23, highlighting strong
operational efficiencies and better revenue mix.
GOV vs EBITDA % GOV
EBIDTA as % of GOV is down compared to last 2 quarters
25000 2.50%
the reason might be the capex they are doing for there
1.93% 1.87%
20000 2.00% newly dark stores. We expect this will improve further
when stores are matured.
15000 0.97% 1.50%
1.41% In quick commerce side, The margin are under pressure
10000 1.25% 1.00% but we see its improving from (2.5%) Q3FY24 to (1.3%)
Q3FY25 reflecting better per-order economics, reduced
5000 0.50%
discounting.
0 0.00%
Q3F24 Q4FY24 Q1FY25 Q2FY25 Q3FY25
From a net margin perspective, Zomato reported a PAT
of ₹138 crore in Q3 FY24, a turnaround from a loss of
GOV EBITDA % GOV ₹(347) crore in Q3 FY23. This profitability milestone
indicates that Zomato is managing to grow without
Source : Screener, AR , Consensus Estimate excessive cash burn
Academic Research Project – Not a Recommendation

Zomato Ltd

Commentary

Trade Receivables Analysis Revenue vs Receivables

As per our Analysis, A sharp spike occurred in FY23, with 15,000
receivables growing by 185.6%, which may have resulted from
Zomato's entering into new verticals like quick commerce and 10,000
increased B2B transactions. This was followed by a moderation in
FY23 and FY24, with receivables growth at 73.7%,
5,000
On average, Zomato's receivables have grown at 88.8% YoY,
with a median growth of 74.7%, Average receivable days 0
also grown from 13 Days to 19 Days indicating consistently FY18A FY19A FY20A FY21A FY22A FY23A FY24A
high working capital requirements. Slower collection from
receivable This suggest company is scaling up but still faces Revenue Receivables
challenges to optimize Receivable.
Particulars FY18A FY19A FY20A FY21A FY22A FY23A FY24A Median Mean
Revenue 466 1,313 2,605 1,994 4,192 7,079 12,114
Revenue Growth YOY % 181.8% 98.4% -23.5% 110.2% 68.9% 71.1% 84.8% 84.5%
Receivables 26 70 123 130 160 457 794
Receivable Growth YOY % 169.2% 75.7% 5.7% 23.1% 185.6% 73.7% 74.7% 88.8%

Total Assets 1,374 3,413 2,900 8,704 17,327 21,599 23,356

Average Receivables 48 97 127 145 309 626

Average Receivable as % of Revenue 3.7% 3.7% 6.3% 3.5% 4.4% 5.2% 4.0% 4.4%
Average Receivable Days 13 14 23 13 16 19 15 16
Receivable as % of Total Assets 1.41% 3.33% 1.45% 0.84% 1.43% 2.68% 1.4% 1.9%

GOGS vs Trade Payables Trade Payables Analysis

15,000
As per our Analysis, we see there is Correlation in growth
10,000 between COGS and Payable. Average payable % of COGS has
maintained over the period at median level of 6.5% which
5,000 seems good payable management at company level.

0 Company has maintained healthy payable days number at

FY18A FY19A FY20A FY21A FY22A FY23A FY24A median level of 24 days it shows that company has making
timely payments to creditors
Trade Payables COGS

Particulars FY18A FY19A FY20A FY21A FY22A FY23A FY24A Median Mean
Revenue 466 1,313 2,605 1,994 4,192 7,079 12,114
Revenue Growth YOY % 181.8% 98.4% -23.5% 110.2% 68.9% 71.1% 84.8% 84.5%
Trade Payables 67 376 269 297 429 679 886
Payables Growth YOY % 461.2% -28.5% 10.4% 44.4% 58.3% 30.5% 37.5% 96.1%
COGS 558 3556 4909 2461 6043 8290 12071
COGS Growth YOY % 537.3% 38.0% -49.9% 145.6% 37.2% 45.6% 41.8% 125.6%

Total Assets 1,374 3,413 2,900 8,704 17,327 21,599 23,356

Average Payables 222 323 283 363 554 783

Average Payables as % of COGS 6.2% 6.6% 11.5% 6.0% 6.7% 6.5% 6.5% 7.2%
Average Payables Days 23 24 42 22 24 24 24 26
Payables as % of Total Assets 6.49% 11.12% 3.25% 2.09% 2.56% 3.35% 3.3% 4.8%
Academic Research Project – Not a Recommendation

Zomato Ltd

Dupont Analysis

RETURN ON EQUITY (ROE)

Mar-21 Mar-22 Mar-23 Mar-24
NET PROFIT ₹ -816.40 ₹ -1,222.50 ₹ -971.00 ₹ 351.00
AVERAGE SHAREHOLDERS EQUITY ₹ 4,050.59 ₹ 12,074.65 ₹ 17,982.75 ₹ 19,936.50
RETURN ON EQUITY -20.16% -10.12% -5.40% 1.76%

ROE - DUPONT EQUATION

Mar-21 Mar-22 Mar-23 Mar-24
NET PROFIT ₹ -816.40 ₹ -1,222.50 ₹ -971.00 ₹ 351.00
REVENUE ₹ 1,993.80 ₹ 4,192.40 ₹ 7,079.00 ₹ 12,114.00
NET PROFIT MARGIN (A) -40.95% -29.16% -13.72% 2.90%

REVENUE ₹ 1,993.80 ₹ 4,192.40 ₹ 7,079.00 ₹ 12,114.00

AVERAGE TOTAL ASSETS ₹ 5,801.95 ₹ 13,015.25 ₹ 19,463.00 ₹ 22,477.50
ASSET TURNOVER RATIO (B) 0.34 0.32 0.36 0.54

AVERAGE TOTAL ASSETS ₹ 5,801.95 ₹ 13,015.25 ₹ 19,463.00 ₹ 22,477.50

AVERAGE SHAREHOLDERS EQUITY ₹ 4,050.59 ₹ 12,074.65 ₹ 17,982.75 ₹ 19,936.50
EQUITY MULTIPLIER (C) 1.43 1.08 1.08 1.13

RETURN ON EQUITY (A*B*C) -20.16% -10.12% -5.40% 1.76%

RETURN ON ASSETS (ROA)

Mar-21 Mar-22 Mar-23 Mar-24
NET PROFIT ₹ -816.40 ₹ -1,222.50 ₹ -971.00 ₹ 351.00
AVERAGE TOTAL ASSETS ₹ 5,801.95 ₹ 13,015.25 ₹ 19,463.00 ₹ 22,477.50
RETURN ON ASSETS -14.07% -9.39% -4.99% 1.56%

ROC - DUPONT EQUATION

Mar-21 Mar-22 Mar-23 Mar-24
NET PROFIT ₹ -816.40 ₹ -1,222.50 ₹ -971.00 ₹ 351.00
REVENUE ₹ 1,993.80 ₹ 4,192.40 ₹ 7,079.00 ₹ 12,114.00
NET PROFIT MARGIN (A) -40.95% -29.16% -13.72% 2.90%

REVENUE ₹ 1,993.80 ₹ 4,192.40 ₹ 7,079.00 ₹ 12,114.00

AVERAGE TOTAL ASSETS ₹ 5,801.95 ₹ 13,015.25 ₹ 19,463.00 ₹ 22,477.50
ASSET TURNOVER RATIO (B) 0.34 0.32 0.36 0.54

RETURN ON EQUITY (A*B*C) -14.07% -9.39% -4.99% 1.56%

Academic Research Project – Not a Recommendation

Zomato Ltd

Dupont Analysis

RETURN ON CAPITAL EMPLOYED (ROCE)

Mar-21 Mar-22 Mar-23 Mar-24
NOPAT ₹ -605.76 ₹ -2,004.38 ₹ -1,576.56 ₹ -582.59
AVERAGE CAPITAL EMPLOYED ₹ 2,922.68 ₹ 9,226.90 ₹ 14,380.40 ₹ 14,376.50
RETURN ON CAPITAL EMPLOYED -20.73% -21.72% -10.96% -4.05%

ROCE - DUPONT EQUATION

Mar-21 Mar-22 Mar-23 Mar-24
NOPAT ₹ -605.76 ₹ -2,004.38 ₹ -1,576.56 ₹ -582.59
REVENUE ₹ 1,993.80 ₹ 4,192.40 ₹ 7,079.00 ₹ 12,114.00
NOPAT MARGIN (A) -30.38% -47.81% -22.27% -4.81%

REVENUE ₹ 1,993.80 ₹ 4,192.40 ₹ 7,079.00 ₹ 12,114.00

AVERAGE CAPITAL EMPLOYED ₹ 2,922.68 ₹ 9,226.90 ₹ 14,380.40 ₹ 14,376.50
CAPITAL TURNOVER RATIO (B) 0.68 0.45 0.49 0.84

RETURN ON EQUITY (A*B*C) -20.73% -21.72% -10.96% -4.05%

MOAT ASSESSMENT
Mar-21 Mar-22 Mar-23 Mar-24
Gross Profit Margin 89.82% 86.82% 79.69% 76.17%
EBITDA Margin -23.43% -44.15% -17.11% 0.35%
Net Profit Margin -40.95% -29.16% -13.72% 2.90%
ROIC -11.23% -8.15% -5.12% 1.72%
ROCE -20.73% -21.72% -10.96% -4.05%
ROE -14.07% -9.39% -4.99% 1.56%
EPS ₹ 0.00 ₹ -1.55 ₹ -1.14 ₹ 0.40
ROA -14.07% -9.39% -4.99% 1.56%

Commentary

ROE has been improved from -20.16% ( Mar 21) to 1.76% (Mar 24). The improvement is primarily driven by
higher net profit Margin and better asset utilisation but equity multiplier remained stable. Net profit margin has
been improved -40.95% to 2.9%. And asset turnover has been improved from 0.34 to 0.54 suggest better asset
utilisation.

ROA has improved from -14.07% Mar 21) to 1.56% (Mar 24). The improvement is due to net profit is positive in
Mar 24 and company is using asset to improved there turnover.

ROCE has improved but still its negative to -4.81%. Capital turnover has improved but profitability is still a
challenge.

Source : Screener, Company Analysis.

Academic Research Project – Not a Recommendation

Zomato Ltd

Dupont Analysis

Revenue from Operations (in Crs.)

Net Profit (in Crs.)
351
12,114

7,079 Jan-21 Jan-22 Jan-23 Jan-24

4,192
1,994
-813
-971
-1,209
Mar-21 Mar-22 Mar-23 Mar-24

Earnings Per Share (in Rs.) Asset Turnover Ratio

0.54
0.4

Mar-21 -1.6
Mar-22 -1.1
Mar-23 Mar-24 0.34 0.36
0.32

-20,410.0 Mar-21 Mar-22 Mar-23 Mar-24

Return on Equity Return on Capital Employed

1.76% 1.7%

Mar-21 Mar-22 Mar-23 Mar-24

Jan-21 Jan-22 Jan-23 Jan-24

-5.40%

-4.8%
-10.12%
-7.3%

-9.9%
-20.16%

Source: Company Analysis, Screener

Academic Research Project – Not a Recommendation

Zomato Ltd

Ratio Analysis

Profitability Ratios Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales Growth 181.7% 98.4% -23.5% 110.3% 68.9% 71.1%
Expenses Growth 537.5% 38.0% -49.5% 145.6% 37.3% 44.2%
Sustainable Growth Rate -42.9% -521.6% -10.7% -7.4% -5.0% 1.7%
Gross Profit Growth 177.6% 92.8% -28.2% 103.2% 55.0% 63.6%
EBITDA Growth 2326.7% 2.7% -79.7% 296.2% -34.6% -103.6%
EBIT Growth 1780.4% 4.5% -74.7% 230.9% -17.6% -70.7%
PBT Growth 844.9% 136.1% -65.8% 49.7% -16.8% -128.7%
Net Profit Growth 844.9% 136.1% -65.8% 49.7% -20.6% -136.1%
Dividend Growth 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Dividend Payout 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Gross Margin 98.6% 95.8% 89.8% 86.8% 79.7% 76.2%
Operating Margin -170.9% -88.5% -23.4% -44.1% -17.1% 0.4%
PBT Margin -77.0% -91.6% -40.9% -29.1% -14.3% 2.4%
Net Margin -77.0% -91.6% -40.9% -29.2% -13.7% 2.9%

Efficiency Ratios Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Debtor Days 19.56 17.25 23.78 13.92 23.56 23.92
Debtor Turnover 18.66 21.16 15.35 26.22 15.49 15.26
Inventory Days 0.59 0.52 2.71 3.46 4.28 2.65
Inventory Turnover 616.24 698.32 134.72 105.60 85.29 137.66
Net Fixed Asset Turnover 3.37 1.64 1.30 2.99 1.12 1.88
Total Asset Turnover 0.38 0.90 0.23 0.24 0.33 0.52
Sales/Capital Employed 0.49 3.33 0.24 0.25 0.35 0.57

Leverage Ratios Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Debt/Equity 14.8% 71.2% 6.9% 0.4% 2.6% 3.7%
Debt/Assets 10.2% 11.2% 6.1% 0.4% 2.3% 3.2%
Debt/EBITDA -15.5% -14.1% -112.9% -3.8% -41.9% 1741.9%
Debt/Capital 12.9% 41.6% 6.5% 0.4% 2.5% 3.5%
CFO/Debt 0.0% -658.4% -193.0% -985.8% -166.5% 86.2%
Debt Burden -802.4% -1625.3% -540.7% -4459.5% -560.9% -274.2%
Interest Coverage (Times) -115.25 -187.73 -79.70 -100.71 -19.71 5.04
Operating Leverage 9.80 0.05 3.18 2.09 -0.26 -0.99
Financial Leverage 1.45 6.34 1.14 1.05 1.11 1.14

Capital Allocation Ratios Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Return on Capital Employed -37.0% -303.1% -9.9% -7.3% -4.8% 1.7%
EBIT Margins -174.2% -91.7% -30.3% -47.7% -23.3% -4.0%
Sales/Capital Employed 0.49 3.33 0.24 0.25 0.35 0.57
NOPAT -2286.60 -2388.94 -605.76 -2004.38 -1576.56 -582.59
Return on Invested Capital -41.0% -563.9% -11.2% -8.1% -5.1% 1.7%

Source: Company Analysis, Screener

Academic Research Project – Not a Recommendation

Zomato Ltd

Ratio Analysis

Cash Ratios Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Free Cash Flow (Rs Cr) -2,792 -5,292 -2,852 -3,135 -2,844 -2,054
Operating Cash Flow Growth 0.0% 0.0% -52.5% -31.9% 21.8% -176.5%
Free Cash Flow Growth -9.1% 89.5% -46.1% 9.9% -9.3% -27.8%
FCF/Sales -213% -203% -143% -75% -40% -17%
CFO/Total Assets 0% -74% -12% -4% -4% 3%
x 0% -658% -193% -986% -166% 86%
Cash Interest Coverage 1.00 -168.59 -99.65 -56.58 -17.12 9.14
CFO/Capex - -0.68 -0.56 -0.28 -0.42 0.24

Valuation Ratios Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Enterprise Value (EV) 0.0 0.0 0.0 63280.5 43112.9 160626.6
EV/EBITDA 0.00 0.00 0.00 -34.19 -35.60 3735.50
Price/Earnings 0.00 0.00 0.00 -52.99 -44.93 457.57
Price/Sales 0.00 0.00 0.00 15.45 6.16 13.26
Price/CFO 0.00 0.00 0.00 -93.49 -51.69 248.62
Price/Book Value 0.00 0.00 0.00 3.93 2.24 7.87

Debt/Equity Sales/Total Asset

80.0% 71.2% 1.00 0.90
70.0%
0.80
60.0%
50.0% 0.60 0.52
40.0% 0.38
0.40 0.33
30.0% 0.23 0.24
20.0% 14.8% 0.20
6.9%
10.0% 2.6% 3.7%
0.4%
-
0.0% Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24

CFO/Capex Net Margin (%)

0.40 20.0%
0.24 2.9%
0.20 0.0%
- Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
- -20.0% -29.2% -13.7%
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 -40.9%
(0.20) (0.28) -40.0%
(0.42)
(0.40) -60.0%
(0.56) -77.0%
(0.60) (0.68) -80.0% -91.6%

(0.80) -100.0%

Source: Company Analysis, Screener

Academic Research Project – Not a Recommendation

Zomato Ltd

ROIIC Profiling

Rs Cr Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Income -106.9 -1,010.2 -2,385.6 -816.4 -1,222.5 -971.0 351.0

Capital Employed 1,014.3 2,464.9 423.1 7,267.6 15,000.3 18,950.0 20,431.0

ROIIC Profiling
Cumulative Net Income -6,161.7
Incremental Capital Deployed 19,416.75
Reinvestment Rate -315.12%

ROIIC 2.36%
Intrinsic Compounding Rate -7.43%

Stock Price (3 Year CAGR) 60.08%

Stock Price (5 Year CAGR) NA

Net Income vs Capital Employed

25,000

20,000

15,000

10,000

5,000

0
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
-5,000

Net Income Capital Employed

Commentary

The Return on Incremental Invested Capital (ROIIC) stands at 2.36%, indicating company earning low return on
the additional capital deployed over the period time. Till date fresh capital infusion is ₹19,416.75 Cr i.e
incremental capital deployed , the company has struggled with profitability and cumulative net loss of ₹6,161.7
Cr. The Intrinsic Compounding Rate, which is at -7.43%, Indicate that the company is eroded the value rather
than compounded it.

Source: Company Analysis, Screener

Academic Research Project – Not a Recommendation

Zomato Ltd

Relative Valuation
Market Data Financials Valuation
Share
Equity Enterpris
Share Outstan Net Net EV/EBITD
Value e Value
Company Price ding Debt Revenue EBITDA Income EV/Revenue A P/E

Zomato Ltd 228 965.04 2,19,565 1,159 2,20,724 17,972 1,599 663 12.3x 138.1x 331.2x
Info Edg.(India) 6,916 12.96 89,620 256 89,876 2,757 1,545 640 32.6x 58.2x 140.1x
Swiggy 351 228.26 80,041 1,044 81,085 11,247 -1,826 -2,304 7.2x -44.4x -34.7x
One 97 751 63.78 47,898 166 48,064 7,256 -1,396 -2,002 6.6x -34.4x -23.9x
Indiamart 2,142 6.00 12,859 38 12,898 1,348 674 470 9.6x 19.1x 27.4x
Just Dial 867 8.50 7,376 93 7,469 1,123 534 403 6.7x 14.0x 18.3x
One Mobikwik 320 7.77 2,489 237 2,726 875 43 14 3.1x 62.7x 177.2x

High 32.6x 138.1x 331.2x

75Th Percentile 10.9x 60.5x 158.6x
Average 11.1x 30.5x 90.8x
Median 7.2x 19.1x 27.4x
25th Percentile 6.6x -10.2x -2.8x
Low 3.1x -44.4x -34.7x

Zomato Comparable Valuation EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 1,29,563.88 30,581.92 19,310.25

Net Debt 1,159 1,159 1,159

Implied Market Value 1,28,404.88 29,422.92 18,151.25

No Of Shares Outstanding 965.04 965.04 965.04

Implied Value per share 133.06 30.49 18.81

Current Market Price 227.52 227.52 227.52

Results Overvalued Overvalued Overvalued

Commentary

Since Zomato is not matured business with stable , predictable and positive cash flow currently it is transition
towards profitability and consistent Cash flow. DCF is not the most reliable valuation model to be used Hence we
used Relative valuation method to Value zomato compare to its peers.

Based on the above valuation, Zomato current market price is grossly overvalued compare to peers in the market.
Since quick commerce is fastest growing industry with low market barriers its easy for new and other offline
player to enter into this market. The way new players are enter with deep discount, distribution channel and price
war. After some point of time quick commerce will be the perfect competition market this will hit the bottom line
and valuation of the firms who are not competitive.

Source: Company Analysis, Screener

Academic Research Project – Not a Recommendation

Zomato Ltd

Peer Stock Performance 1 Yr Indexed

Peer Comparison

Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25

Zomato Paytm Info edge India mart Nifty 50

Source: Investing.com

Peer Financial Performance

S.No. Name CMP Market Cap Debt / Eq Int Coverage P/E Ratio PEG Ratio ROCE % ROE %
1 Zomato Ltd 201.7 194647.57 0.05 7.45 293.59 18.3 1.14 1.12
2 Info Edg.(India) 7181.4 93059.54 0.01 61.01 145.43 2.92 3.65 2.44
3 Swiggy 330.2 75373.1 0.15 - - -24.39 - -31.27
4 One 97 783.45 49972 0.01 - - -8.5 -9.07 -115.08
5 Indiamart Inter. 2068.7 12418.85 0.02 26.44 0.35 23.93 17.65 80.34
6 Just Dial 815.6 6936.04 0.02 17.2 -2.28 4.81 3.63 48.07
7 One Mobikwik 304.05 2362.05 1.5 168.12 - 8.96 9.2 1.75

Source: Screener
Academic Research Project – Not a Recommendation

Zomato Ltd

Analyst Coverage Universe

Sr No Date Research House Rating Target Price at reco

1 30-Jan-25 Geojit BNP Paribas Buy 254 218.8
2 21-Jan-25 Axis Direct Buy 280 214.55
3 20-Jan-25 Motilal Oswal Buy 270 239.75
4 20-Jan-25 Emkay Buy 310 239.75
5 28-Oct-24 Geojit BNP Paribas Buy 284 253.95
6 23-Oct-24 ICICI Securities Limited Buy 300 264.05
7 23-Oct-24 Axis Direct Buy 350 264.05
8 7-Oct-24 Motilal Oswal Buy 320 266.1
9 22-Aug-24 Emkay Buy 270 257.96
10 22-Aug-24 Motilal Oswal Buy 300 257.96
11 2-Aug-24 ICICI Securities Limited Buy 300 262.34
12 2-Aug-24 Axis Direct Buy 280 262.34
13 1-Aug-24 Motilal Oswal Buy 300 234.09
14 31-Jul-24 Axis Direct Buy 280 229.45
15 13-Jun-24 SBI Securities Buy 214 184.94
16 16-May-24 Geojit BNP Paribas Buy 220 195.2
17 14-May-24 ICICI Securities Limited Buy 300 187.3
18 14-May-24 Emkay Buy 230 187.3
19 9-May-24 Emkay Buy 230 195.25
20 26-Apr-24 ICICI Securities Limited Buy 300 188.1

Source : Trendlyne

Disclaimer: This is an academic project and is not meant for commercial usage

This information/document does not constitute an offer to sell or solicitation for the purchase or sale of
any financial instrument or as an official confirmation of any transaction. The information contained
herein is obtained from publicly available data or other sources believed to be reliable and the Author
has not independently verified the accuracy and completeness of the said data and hence it should not
be relied upon as such.

The Author is not SEBI registered investment analyst. This document is prepared as part of academic
project. Investment in securities market are subject to market risks, read all the related documents
carefully before investing. The securities quoted are for illustration only and are not recommendatory.
Registration granted by SEBI, and certification from NISM in no way guarantee performance of the
intermediary or provide any assurance of returns to investors.