Zomato Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹223,032.5 crore, PE ratio of 635.42, debt-to-equity ratio of 2.6, and return on equity of -5.4%. These figures reflect the company’s financial health and current market valuation.
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Zomato Ltd Overview
Zomato Ltd is a leading technology platform that connects customers, restaurant partners, and delivery partners. It operates in the food delivery and restaurant discovery sector, providing online food ordering and delivery services.
The company has a market capitalization of ₹223,032.5 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Zomato was listed on July 23, 2021. Currently, the stock is trading 6.24% below its 52-week high and 197.1% above its 52-week low.
Zomato Financial Results
Zomato Ltd has experienced notable fluctuations in financial performance over the past three years. Sales increased from ₹4,192 crore in FY 22 to ₹12,114 crore in FY 24, reflecting significant growth. However, the company faced challenges, such as an operating loss turning into a modest profit and an erratic net profit trajectory.
1. Revenue Trend: Sales rose from ₹4,192 crore in FY 22 to ₹7,079 crore in FY 23, and surged to ₹12,114 crore in FY 24, indicating robust revenue growth each year.
2. Equity and Liabilities: In FY 24, total liabilities increased to ₹23,356 crore from ₹21,599 crore in FY 23. Equity capital rose to ₹868 crore from ₹836.4 crore, while reserves grew to ₹19,545 crore.
3. Profitability: The Operating Profit Margin (OPM) improved from -44% in FY 22 to 0% in FY 24, marking a shift from substantial losses to break-even.
4. Earnings per Share (EPS): EPS improved from -₹1.67 in FY 22 to ₹0.41 in FY 24, reflecting a move from losses to profitability.
5. Return on Net Worth (RoNW): Not specifically provided but implied improvement with reduced losses and a positive net profit in FY 24.
6. Financial Position: The improvement in OPM and stabilization of expenses alongside revenue growth suggest strengthening financial health.
Zomato Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 12,114 | 7,079 | 4,192 |
| Expenses | 12,072 | 8,290 | 6,043 |
| Operating Profit | 42 | -1,210 | -1,851 |
| OPM % | 0 | -17 | -44 |
| Other Income | 847 | 682 | 792 |
| EBITDA | 889 | -529 | -1,356 |
| Interest | 72 | 49 | 12 |
| Depreciation | 526 | 437 | 150 |
| Profit Before Tax | 291 | -1,014 | -1,221 |
| Tax % | -21 | 4 | 0 |
| Net Profit | 351 | -971 | -1,223 |
| EPS | 0.41 | -1.2 | -1.67 |
* Consolidated Figures in Rs. Crores
Zomato Limited Company Metrics
Zomato’s market cap is ₹223,032.5 crore with a book value of ₹23.1 per share. The face value per share is ₹1. Total debt is ₹506.6 crore, ROE is -5.4% and quarterly EBITDA is ₹413 crore. A dividend yield is not provided.
Market Capitalization:
Market Capitalization represents the total market value of Zomato’s outstanding shares, amounting to ₹223,032.5 crore.
Book Value:
The book value per share of Zomato Ltd. is ₹23.1 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Zomato’s shares is ₹1, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.67 measures how efficiently Zomato uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Zomato stands at ₹506.6 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of -5.4% measures Zomato’s profitability by revealing how much profit the company generates with the money shareholders have invested. The negative value indicates a loss.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Zomato is ₹413 crore, indicating the company’s operating performance.
Zomato Ltd Stock Performance
Zomato Ltd demonstrated remarkable growth with a one-year return of 186% and a three-year return of 24.8%, indicating robust performance and promising returns. Investing in Zomato Ltd has proven lucrative, especially in the short term.
| Period | Return on Investment (%) |
| 1 Year | 186 |
| 3 Years | 24.8 |
Example: If an investor had invested ₹1,000 in Zomato’s stock:
1 year ago: An investment of ₹1,000 would now be worth ₹2,860.
3 year ago: An investment of ₹1,000 would now be worth ₹1,248.
Zomato Ltd Peer Comparison
Zomato Ltd stands out with a staggering one-year return of 186%, showcasing its market dominance among peers in the digital platform sector. In contrast, companies like Info Edge and Just Dial also show robust growth, whereas IndiaMart and One97 Communications exhibit challenges, reflecting diverse dynamics in tech investments. Zomato’s massive market capitalization and high P/E ratio highlight its growth expectations and investor interest despite its minimal ROE and EPS figures.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Zomato Ltd | 265 | 2,34,048 | 635 | 1 | 1 | 186 | 1 | – |
| Info Edge (India) | 7,195 | 93,097 | 145 | 2 | 50 | 62 | 4 | 0.30 |
| One 97 | 520 | 33,102 | -11 | -30 | -41 | -10.19 | – | |
| Indiamart Inter. | 2,807 | 16,836 | 46 | 18 | 61 | -11.39 | 23.93 | 0.73 |
| Just Dial | 1,332 | 11,327 | 60 | 4 | 49 | 68 | 5 | – |
| RNFI | 159 | 397 | 39 | 39 | 6 | 30.21 | – | |
| Intrasoft Tech. | 124 | 202 | 21 | 5 | 6 | 3 | 7.64 | – |
Zomato Shareholding Pattern
Zomato Ltd has maintained a significant foreign institutional investor (FII) participation, slightly decreasing from 55.11% in March 2024 to 54.11% in June 2024. Domestic institutional investors (DII) slightly increased their stake, while the retail and other investor segments remained relatively stable during this period.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| FII | 54.11 | 55.11 | 54.88 |
| DII | 15.79 | 15.28 | 15.47 |
| Retail & others | 30.09 | 29.63 | 29.64 |
Zomato History
Zomato Limited operates as an internet portal connecting users, restaurant partners, and delivery partners. The company’s primary focus is on facilitating food ordering and delivery services through its online platform. Zomato has expanded its offerings to include advertising services for restaurant partners and a supply of ingredients.
The company operates through several segments. The Indian food ordering and delivery segment forms the core of Zomato’s business, connecting end users with restaurants and delivery personnel. The Hyperpure supplies segment caters to the B2B market, offering farm-to-fork supplies for restaurants in India.
Zomato has also ventured into the quick commerce business, providing a platform for rapid delivery of goods and essentials. This segment connects end users with delivery services and warehousing facilities, expanding Zomato’s reach beyond just food delivery into broader e-commerce services.
How To Invest In Zomato Limited Share?
To invest in Zomato Limited shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Zomato shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Zomato Limited Fundamental Analysis – FAQs
Fundamental analysis of Zomato Ltd examines key financial metrics: Market Cap (₹223,032.5 crore), PE Ratio (635.42), Debt to Equity (2.6), and Return on Equity (-5.4%). These indicators provide insights into the company’s financial health, market valuation, and current challenges in profitability in the food delivery sector.
The market capitalization of Zomato Ltd is ₹223,032.5 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Zomato Limited is a technology platform that primarily operates in the food delivery and restaurant discovery sector. It connects customers with restaurants and delivery partners, facilitates online food ordering and delivery, and provides additional services like restaurant advertising and B2B ingredient supply.
Zomato is a public limited company, founded by Deepinder Goyal and Pankaj Chaddah. While the founders and early investors hold significant stakes, it is now a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Zomato Ltd typically include the founders, early investors, institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current and accurate information on major shareholders, refer to the latest shareholding pattern disclosed by the company.
Zomato operates in the technology-enabled services industry, specifically in the food delivery and restaurant discovery sector. It is part of the broader e-commerce and online platform industry, providing digital solutions for food ordering, delivery, and related services.
To invest in Zomato shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Zomato is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like P/E ratio, growth rate, and market position, while also factoring in the company’s potential in the evolving food delivery sector.
