Zomato Faces Share Price Decline as Macquarie Predicts Competition Pressure
New Delhi: Zomato, the online food aggregator, witnessed a decline in its shares on Friday following a forecast by global financial services firm Macquarie, predicting a potential 50 percent decrease in the company’s share price over the next 12 months due to intense competition.
Zomato’s shares initially dropped over 5 percent before experiencing a partial recovery, settling around Rs 173 per share.
Macquarie has reaffirmed its “underperform” rating for Zomato, setting a price target of Rs 96 for its stock.
According to reports, Macquarie also expressed concerns about consensus forecasts and margins for Blinkit, Zomato’s quick e-commerce platform.
The report coincided with Blinkit achieving adjusted EBITDA positivity in March, while Zomato aims to expand to 1,000 Blinkit stores by the end of FY25.
Zomato reported a profit of Rs 175 crore in Q4 FY24.
Previously, Emkay Global had maintained a buy rating on Zomato with a target price of Rs 230 per share.
Meanwhile, a report from Goldman Sachs indicated that Blinkit has surpassed Zomato’s core food delivery business in value.
