Zomato share price may fall to ₹130, says Macquarie flagging potential downside risks

Brokerage firm Macquarie has maintained its "underperform" recommendation on food delivery aggregator Zomato Ltd. with a price target of ₹130.

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Macquarie wrote in its note that it is time to revisit the fundamental building blocks of growth and unit economics for Blinkit and Zomato Food Delivery.

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Zomato's current estimates are pricing in its Gross Order Value for the Food Delivery and Quick Commerce business to grow at a Compounded Annual Growth Rate (CAGR) between 18% and 35% over a 10-year period, according to Macquarie.

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Zomato reported a net profit of ₹176 crore for the July-September period. The figure though was lower compared to Jefferies' estimates of ₹245.3 crore. The company had reported a net profit of ₹36 crore during the base quarter.

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Revenue on an adjusted basis for the quarter also increased by 69% from the same quarter last year to ₹4,799 crore. Analysts at Jefferies were projecting the revenue figure of ₹5,042.7 crore.

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Out of the 27 analysts that have coverage on Zomato, 24 of them have a "buy" rating on the stock, while three have a "sell" recommendation.

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Shares of Zomato have corrected 13% so far from its recent record high of ₹298. Yet, the stock is up 107% on a year-to-date basis.

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