Zomato gains 1.5%, HSBC raises target price to Rs 93

Zomato share price: Shares of Zomato, the restaurant aggregator and food delivery company, gained as much as 1.52 per cent to Rs 75.25 apiece on the BSE in the morning trade on Thursday. Of late, foreign brokerages have raised the target prices on the stock. The latest one to join the list is HSBC, which has increased the target to Rs 93. This is the biggest target increase for the stock since December 13, 2021, according to Zee Business Research.

Since April, leading foreign brokerages such as Morgan Stanley, Citi, and CLSA have raised their target prices. 

The average target price hike is 16 per cent higher than the current levels.

HSBC                : 26%
Morgan Stanley  : 15%
Citi                     :14%
CLSA                   :8%
Average             :16%

(Source: Zee Business Research)

Zomato Q4 and FY23 results

Zomato said its consolidated net loss narrowed to Rs 187.6 crore in the fourth quarter ended March 2023 (Q4FY23) on the back of robust revenue growth. The company had posted a consolidated net loss of Rs 359.7 crore in the same period previous fiscal, Zomato said in a regulatory filing.

Its consolidated revenue from operations during the period under review stood at Rs 2,056 crore against Rs 1,211.8 crore in the year-ago period. The total expenses in the fourth quarter were higher at Rs 2,431 crore compared to Rs 1,701.7 crore in the corresponding period a year ago, the company said.

For the fiscal ended March 31, 2023, the consolidated net loss was Rs 971 crore, down from a consolidated net loss of Rs 1,222.5 crore in 2021-22. In FY23, consolidated revenue from operations stood at Rs 7,079.4 crore compared to Rs 4,192.4 crore in FY22, the company said in a filing.

In a letter to the shareholders, Zomato Managing Director and CEO Deepinder Goyal asserted that the company is confident of achieving profitability for the entire business within the next four quarters.