Zomato

4 August 2023
1QFY24 Results Update | Sector: Internet

Zomato
Estimate change CMP: INR86 TP: INR110 (+28%) Buy
TP change
Benefit of industry consolidation playing out
Rating change
Revenue guidance suggests good visibility; reiterate BUY
 Zomato delivered an excellent 1QFY24 performance, as it turned profitable
and reported strong revenues of INR24.1b (up 17.5% QoQ), much ahead of
our estimates of 9.9% QoQ growth and a PAT loss. Revenue growth was led
by the food delivery business (up 17% QoQ). While Blinkit was muted (+5%
QoQ) due to disruptions in April-May, it should reverse in 2Q (20% QoQ
growth guidance). The management has guided for strong 40%/60%+
growth for Zomato (consol)/Blinkit over the next few years, which surprised
us on the upside.
 Zomato’s 1QFY24 Adj. EBITDA margin at 2.2% was significantly ahead of our
estimate (-3.1%) on account of a higher take rate and lower operating costs.
This helped the company brake-even on PAT (INR20m), ahead of its 4QFY24
guidance. The management expects the company to sustain profitability as it
Bloomberg ZOMATO IN moves toward food delivery adj EBITDA margin of 4-5% of GOV eventually,
Equity Shares (m) 8631 along with accelerated break-even in Blinkit over the next four quarters.
M.Cap.(INRb)/(USDb) 739.7 / 8.9  We see the strong all-round performance from Zomato as an indicator of an
52-Week Range (INR) 88 / 44 accommodative competitive environment in both food delivery and quick
1, 6, 12 Rel. Per (%) 14/68/44 commerce verticals. Moreover, the sharp 80bp QoQ increase in take rate in
12M Avg Val (INR M) 5754 food delivery highlights its success in cross-selling ads to restaurants, which
is a more sustainable revenue stream rather than depending on increase in
Financials & Valuations (INR b) take rate. We expect Zomato to deliver 25%/107% revenue CAGR in food
Y/E MARCH FY23 FY24E FY25E delivery/quick commerce verticals over FY23-25, helping it grow its consol
GOV 263.5 317.1 397.6
adj revenue by 43% over the same period.
Net Sales 70.8 109.9 157.7
Change (%) 68.9 55.2 43.5
 Strong revenue growth should drive significant margin leverage, given the
EBITA -12.1 0.0 7.5 fact that competitive pressure in quick commerce has eased considerably
EBITA margin (%) -17.1 0.0 4.8 over the last few months due to a funding crunch for smaller peers. We now
Adj. PAT -9.7 1.3 8.3 estimate Zomato to turn positive on reported EBITDA by 4QFY24 and deliver
PAT margin (%) -13.7 1.2 5.3 c5% EBITDA margin in FY25 (vs. our earlier estimate of break-even in FY25).
RoE (%) -5.40 0.65 4.15
As a result, Zomato should report PAT of INR1.3/INR8.3b in FY24/FY25.
RoCE (%) -8.57 -3.47 0.66
 We remain positive on the long-term growth opportunity for Zomato and do
EPS -1.19 0.15 0.97
not expect competition to intensify further despite the entry of ONDC in the
Shareholding pattern (%) space. Our DCF-based valuation of INR110 suggests a 27% upside from the
As On Jun-23 Mar-23 Jun-22 current price. We reiterate our BUY rating on the stock.
Promoter 0.0 0.0 0.0
DII 31.0 31.0 2.8 Strong revenue beat and guidance; achieves breakeven ahead of
FII 35.4 33.8 12.7 guidance
Others 33.6 35.2 84.6  Zomato reported 1QFY24 net revenue of INR24.1b (+17.5% QoQ), a strong
FII Includes depository receipts beat to our estimate of INR22.6b (+9.9% QoQ). Excluding Blinkit, net
revenue grew 20% QoQ /44% YoY.
 Zomato turned positive on PAT level ahead of its guidance of 4QFY24.
EBITDA loss narrowed sharply to INR480m (-2% EBITDA margin vs. -11% in
4Q), ahead of our estimate of EBITDA loss of INR1.8b, aided by operating
leverage.

Mukul Garg - Research analyst ([email protected])

25 July 2022
Research analyst: Raj Prakash Bhanushali ([email protected]) | Pritesh Thakkar ([email protected]) 1
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Zomato

 Food delivery revenue (excluding delivery charges) grew 17% QoQ/28% YoY,
much ahead of estimate of 6.9% QoQ growth on strong demand recovery,
seasonality and Gold contribution.
 Hyperpure revenue grew 29% QoQ to INR6.2b (25.5% of revenue) despite lower
restaurant count due to the introduction of minimum order value requirements.
 Blinkit 1Q GOV was up only 5% QoQ due to the impact of store closure, strikes
and weather impact. The company has guided for 20% QoQ GOV growth in 2Q.
 PAT came in at INR20m (est. INR1.6b loss) vs. INR1.9bn in 4QFY23. Net cash
stood at INR116b (flat QoQ).
Key highlights from the management commentary
 The management is confident of achieving 40%+ organic growth over the next
couple of years, assuming that the demand slowdown is over now for the
company. Most of this growth will be driven by an uptick in the number of users.
 The management is confident of achieving 4-5% EBITDA margin (% of GOV) over
the next few quarters in the food delivery business.
 For Blinkit, margin levers for break-even over the next four quarters include
wallet share gains and strong operating leverage.
Valuation and view
 The food delivery business is still in a nascent stage in India with a long runway
for growth. With a dominant market share and strong growth in the food
delivery business and Hyperpure, we expect Zomato to report a strong 43% adj.
revenue CAGR over FY23-25.
 We now estimate Zomato to turn positive on reported EBITDA by 4QFY24, and
deliver c5% EBITDA margin in FY25, which should further drive profitability.
 We value the business using a DCF methodology, assuming 4% terminal growth
rate and 12.5% cost of capital. We maintain our BUY rating with a TP of INR110,
implying 27% potential upside.
Consolidated quarterly performance (INR m)
Y/E march FY23 FY24 FY23 FY24E Estimate Var.
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%/bp)
Revenue (net of delivery) 14,139 16,613 19,482 20,560 24,160 25,966 29,208 30,566 70,794 1,09,900 22,587 7.0
YoY Change (%) 67.4 62.2 75.2 69.7 70.9 56.3 49.9 48.7 68.9 55.2 59.8 1110bp
Inventory of traded goods 2,538 3,123 3,900 4,391 5,620 6,102 6,718 7,041 13,952 25,481 4,743
Employee Expenses 3,489 3,813 3,950 3,398 3,380 3,895 4,206 4,275 14,650 15,756 3,840
Delivery expenses 5,724 5,903 6,549 7,193 8,100 8,783 9,654 9,612 25,369 36,149 7,820
Gross Profit 2,388 3,774 5,083 5,578 7,060 7,186 8,630 9,638 16,823 32,514 6,184 14.2
Margins (%) 16.9 22.7 26.1 27.1 29.2 27.7 29.5 31.5 23.8 29.6 27 180bp
Advertisement and sales promotion 2,776 2,997 3,479 3,022 3,140 3,116 3,797 3,684 12,274 13,737 3,275
Others 2,685 3,891 5,266 4,810 4,400 4,414 4,907 5,072 16,652 18,793 4,743 -7.2
EBITDA -3,073 -3,114 -3,662 -2,254 -480 -344 -74 881 -12,103 -17 -1,835 NA
Margins (%) -21.7 -18.7 -18.8 -11.0 -2.0 -1.3 -0.3 2.9 -17.1 0.0 -8.1 610bp
Depreciation 416 1,067 1,548 1,338 1,300 1,324 1,314 1,337 4,369 5,275 1,355
Interest 49 119 161 158 180 180 180 180 487 720 158
Other Income 1,678 1,695 1,734 1,705 1,810 1,720 1,720 1,720 6,812 6,969 1,705
PBT before EO expense -1,860 -2,605 -3,637 -2,045 -150 -129 152 1,084 -10,147 957 -1,643 NA
Extra-Ord expense 0 0 0 1 0 0 0 0 1 0 0
PBT -1,860 -2,605 -3,637 -2,044 -150 -129 152 1,084 -10,146 957 -1,643 NA
Tax 0 -97 -171 -168 -170 -142 0 0 -436 -312 0
Rate (%) 0.0 3.7 4.7 8.2 113.3 110.0 NA 0.0 4.3 NA 0.0
MI & Profit/Loss of Asso. Cos. -3 0 0 6 0 0 0 0 3 0 6
Reported PAT -1,857 -2,508 -3,466 -1,882 20 13 152 1,084 -9,713 1,269 -1,649 NA
Adj PAT -1,857 -2,508 -3,466 -1,883 20 13 152 1,084 -9,714 1,269 -1,649 NA
YoY Change (%) -45.4 -42.3 -8.5 -46.5 -101.1 -100.5 -104.4 -157.6 -35.5 -113.1 -11.2 NA
Margins (%) -13.1 -15.1 -17.8 -9.2 0.1 0.0 0.5 3.5 -13.7 1.2 -7.3 NA

22 May 2023 2
 Zomato

Story in charts

Overall Business

Exhibit 1: Zomato saw strong sequential growth… Exhibit 2: …and turned profitable

Revenue (INR'b) Growth QoQ PAT (INR'b) PAT Margin

21.9%

21.3%

0.0

17.5%
17.5%
-0.6

17.3%
16.7%

-3.6 -4.3 -3.6 -1.9 -2.5 -3.5 -1.9

0.1%
-5.7%

-9.2%
-13.1%

-15.1%
9.0%

-17.8%
8.6%

5.5%

-29.7%
-41.9%
-42.2%
8.4 10.2 11.1 12.1 14.1 16.6 19.5 20.6 24.2

1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24

Source: MOFSL, Company Source: MOFSL, Company

Food Delivery

Exhibit 3: GOV saw strong jump and… Exhibit 4: …take rate improved 80bp QoQ…
37.0% 18.7%
Food Delivery GOV (INR'b) Growth QoQ Food Delivery take rate
17.9%

19.2% 17.1% 17.2%

11.6% 16.7%
9.9% 16.4%
6.4% 16.2%
1.7% 3.1%
0.7% 15.7% 15.8%
-1.8%

45.4 54.1 55.0 58.5 64.3 66.3 66.8 65.6 73.2

1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 5: …leading to 17% sequential growth Exhibit 6: Contribution margin improved 60bp sequentially

Food Delivery revenue (Net; INR'b) Growth QoQ Food delivery contribution margin 6.4%
36.7% 5.8%
5.1%
4.5%
19.6% 17.0%
11.9%
7.7% 5.8% 2.8% 2.8%
4.3%
1.3% 1.9%
1.7%
7.1 8.5 8.9 9.6 10.7 11.4 11.5 11.7 13.7 1.2% 1.1%

1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24

Source: MOFSL, Company Source: MOFSL, Company

22 May 2023 3
 Zomato

Blinkit

Exhibit 7: GOV saw weak sequential growth at 5%… Exhibit 8: …while take rate improved 20bp sequentially…

Blinkit GOV (INR'b) Blinkit take rate

21.4 17.9%
20.5 17.7%
17.2%

17.5 15.9%

14.8
14.0%
11.7

1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 9: …leading to 6% sequential revenue growth Exhibit 10: Contribution margin improved 200bp QoQ
Blinkit contribution margin
Blinkit Revenue (INR'b)
3.8 -2.7% -0.7%
3.6 -4.5%
-7.3%
3.0

2.4
-17.3%
1.6

1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24

Source: MOFSL, Company Source: MOFSL, Company

22 May 2023 4
 Zomato

What do we expect - our estimates

Exhibit 11: Expect good growth in MTU… Exhibit 12: …and order frequency

MTU (Mn) Growth (%) Order Frequency per month

116.2
91.1 3.6

16.0 11.7 13.1 3.4

(36.4)
3.2
3.1
3.0
10.7 6.8 14.7 17.1 19.1 21.6 2.9

FY20 FY21 FY22 FY23 FY24E FY25E FY20 FY21 FY22 FY23 FY24E FY25E

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 13: AOV to remain flat Exhibit 14: Strong GOV growth…

AOV Delivery GOV (INR'b) Growth (%)

124.6
108.3
427
401 408
397 398 23.7 25.4
20.3
(15.5)

278 112.2 94.8 213.0 263.5 317.1 397.6

FY20 FY21 FY22 FY23 FY24E FY25E FY20 FY21 FY22 FY23 FY24E FY25E

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 15: …and increase in take rate… Exhibit 16: …to drive 49% revenue CAGR over FY23-25
Revenue (INR'b) Growth (%)

98.4 110.3
19.1
18.8 68.9
55.2 43.5
(23.5)
17.3 17.2

16.0
15.7 26.0 19.9 41.9 70.8 109.9 157.7

FY20 FY21 FY22 FY23 FY24E FY25E FY20 FY21 FY22 FY23 FY24E FY25E

Source: MOFSL, Company Source: MOFSL, Company

22 May 2023 5
 Zomato

Key highlights from the management commentary

Demand and growth outlook
 In general, any increase in viewership of any event has positive impact on
revenue, but given the scale of the business, the contribution from IPL did not
materially drive revenue. The seasonality is largely due to school holidays and
weather.
 The management is confident of achieving 40%+ organic growth over the next
couple of years, assuming that the demand slowdown is over for the company.
Most of this growth will be driven by an uptick in the number of users.
 Hyperpure saw strong growth despite churning of small players due to an
increase in the minimum order value requirement on the platform. It is seeing
healthy growth, both on restaurant and seller side. Churning of smaller players
helped to improve profitability of the business.
 The management is still exploring synergies between delivery fleet of food
delivery and quick commerce, where the overlap is high between the two.
 Though food inflation remains high, smaller players are increasing ad spends on
the platform to support growth, which also aided AOV for 1QFY24.
 30% of AOV was driven by Zomato Gold. Gold users have slightly higher AOV
and very high order frequency.
 The company wants to maintain healthy cash levels and there are no current
plans for any shareholder return.

Margins
 The management is confident of achieving 4-5% EBITDA margin (% of GOV) over
the next few quarters in the food delivery business.
 The decrease in employee expenses was on account of right sizing done in
Dec’22. 1QFY24 saw full quarter benefit from the same, as 4QFY23 had some
severance payments. The wage hikes will happen in Jul’23 so its impact will
reflect in 2QFY24.

Blinkit
 The movement in AOV is seasonal in nature and fluctuates depending on the
business mix as it provides a wide range of products. Higher ad sales during the
quarter also helped to inch up AOV. 25% of AOV increase was on account of
supply constraints faced by Blinkit during the quarter.
 Due to the disruptions in Delhi, few stores were shut for two days and saw low
delivery partner traffic, which impacted operations in April-May.
 Starting Apr’23, Blinkit evened out compensation to delivery partners. This did
not have much impact on the delivery cost. The delivery cost is expected to
remain in similar lines going forward.
 Blinkit continues to widen its product offering, which should boost revenue and
margins.
 Along with store additions in new areas, the management is also adding stores
in locality where there is very high volume.
 Margin levers for break-even over the next four quarters include wallet share
gains and strong operating leverage.

22 May 2023 6
 Zomato

Valuation and view

 The food delivery business is still in a nascent stage in India with a long runway
for growth. With a dominant market share and strong growth in the food
delivery business and Hyperpure, we expect Zomato to report a strong 43% adj.
revenue CAGR over FY23-25.
 We now estimate Zomato to turn positive on reported EBITDA by 4QFY24, and
deliver c5% EBITDA margin in FY25, which should further drive profitability.
 We value the business using a DCF methodology, assuming 4% terminal growth
rate and 12.5% cost of capital. We maintain our BUY rating with a TP of INR110,
implying 27% potential upside.

Exhibit 17: Revisions to our estimates

Revised estimates Earlier estimates Change (%/bp)
FY24E FY25E FY24E FY25E FY24E FY25E
Revenue (INR m) 1,09,900 1,57,736 1,00,344 1,30,198 9.5% 21.2%
EBITDA (INR m) -17 7,514 -4,416 -361 NA NA
EBITDA Margin 0.0 4.8 -4.4 -0.3 439bp 504bp
PAT 1,269 8,307 -2,728 2,561 NA NA
PAT Margin 1.2 5.3 -2.7 2.0 387bp 330bp
EPS 0.15 0.97 -0.32 0.30 NA NA
Source: MOFSL

Exhibit 18: Sensitivity analysis of our target price

WACC
11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0%
Terminal Growth

3.0% 129 120 112 105 99 93 88

3.5% 133 123 115 107 101 95 89
4.0% 137 127 118 110 103 96 91
4.5% 142 131 121 112 105 98 92
5.0% 148 135 124 115 107 100 94
5.5% 154 140 129 119 110 103 96
Source: MOFSL, Company

22 May 2023 7
 Zomato

Financials and valuations

Revenue Model (INR m)
Y/E March 2020 2021 2022 2023 2024E 2025E
MTU 10.7 6.8 14.7 17.1 19.1 21.6
Order Frequency 3.1 2.9 3.0 3.2 3.4 3.6
Orders/ Month 33.6 19.9 44.6 54.8 64.8 77.6
Orders/ Year 403 239 535 657 777 931
AOV (INR) 278 397 398 401 408 427
Delivery GOV 1,12,209 94,829 2,13,000 2,63,542 3,17,123 3,97,595
Take Rate (%) 17.3 15.7 16.0 17.2 18.8 19.1
Delivery revenue 19,389 14,907 34,186 45,421 59,578 75,782
Blinkit - revenue 0 0 0 8,058 19,506 34,499
Hyperpure - revenue 1,076 2,002 5,350 15,034 27,399 43,702
Others 5,582 3,029 2,388 2,281 3,417 3,753
Revenue 26,047 19,938 41,924 70,794 1,09,900 1,57,736

Income statement (INR m)

Y/E March 2020 2021 2022 2023 2024E 2025E
Sales 26,047 19,938 41,924 70,794 1,09,900 1,57,736
Change (%) 98.4 -23.5 110.3 68.9 55.2 43.5
Inventory of traded goods 1,089 1,919 5,246 13,952 25,481 40,206
Employee Expenses 7,989 7,408 16,331 14,650 15,756 19,055
Other direct expenses -27,033 -8,333 -14,125 2,173 16,758 31,047
Gross Profit -19,044 -925 2,206 16,823 32,514 50,102
% of Net Sales -73.1 -4.6 5.3 23.8 29.6 31.8
Other Expenses 4,003 3,746 20,714 28,926 32,530 42,589
EBITDA -23,047 -4,672 -18,508 -12,103 -17 7,514
% of Net Sales -88.5 -23.4 -44.1 -17.1 0.0 4.8
Depreciation 842 1,377 1,503 4,369 5,275 6,152
EBIT -23,889 -6,049 -20,011 -16,472 -5,292 1,362
% of Net Sales -91.7 -30.3 -47.7 -23.3 -4.8 0.9
Other Income (net) 1,254 1,146 4,832 6,325 6,249 6,945
PBT -22,636 -4,904 -15,179 -10,147 957 8,307
Tax 0 13 20 -436 -312 0
Rate (%) 0.0 -0.3 -0.1 4.3 -32.6 0.0
PAT -22,636 -4,917 -15,199 -9,711 1,269 8,307
Extraordinary gains/loss -1,220 -3,248 2,974 1 0 0
Adjusted PAT -23,856 -8,164 -12,225 -9,710 1,269 8,307
Minority Interest -184 -36 -138 -96 0 0
Reported PAT -23,672 -8,128 -12,087 -9,614 1,269 8,307

Balance Sheet (INR m)

Y/E March 2020 2021 2022 2023 2024E 2025E
Share capital 2,524 4,550 7,643 8,364 8,364 8,364
Reserves 4,574 76,438 1,57,412 1,86,234 1,87,503 1,95,810
Net Worth 7,098 80,987 1,65,055 1,94,598 1,95,867 2,04,174
Minority Interest & Others -65 -57 -66 -66 -66 -66
Loans 15 0 0 58 58 58
Capital Employed 7,047 80,930 1,64,989 1,94,590 1,95,859 2,04,166
Net Block 1,034 838 1,157 6,432 6,613 6,268
Intangibles 14,881 14,553 12,892 57,071 53,115 49,808
Other LT assets 455 30,138 83,771 44,174 41,674 40,674
Curr. Assets 12,634 41,505 75,450 1,08,310 1,21,968 1,40,838
Debtors 1,231 1,299 1,599 4,569 7,394 11,044
Cash & Bank Balance 1,672 3,065 3,923 2,181 13,852 26,788
Investments 5,166 28,024 28,149 52,837 50,837 51,837
Other Current Assets 4,564 9,118 41,779 48,723 49,885 51,169
Current Liab. & Prov 21,956 6,105 8,281 21,397 27,511 33,422
Net Current Assets -9,323 35,400 67,169 86,913 94,457 1,07,416
Application of Funds 7,047 80,930 1,64,989 1,94,590 1,95,859 2,04,167

22 May 2023 8
 Zomato

Financials and valuations

Ratios
Y/E March 2020 2021 2022 2023 2024E 2025E
Basic (INR)
EPS -5.4 -1.5 -1.7 -1.2 0.1 1.0
Cash EPS -5.2 -1.3 -1.5 -0.7 0.8 1.7
Book Value 1.6 15.0 22.6 24.1 22.8 23.8
DPS 0.0 0.0 0.0 0.0 0.0 0.0
Payout % 0.0 0.0 0.0 0.0 0.0 0.0

Valuation (x)
P/E NA NA NA NA NA NA
Cash P/E NA NA NA NA NA NA
EV/EBITDA NA NA NA NA NA NA
EV/Sales 14.4 23.1 14.9 9.8 6.6 4.5
Price/Book Value 52.9 5.7 3.8 3.6 3.8 3.6
Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0 0.0

Profitability Ratios (%)

RoE (144.2) (18.5) (9.9) (5.4) 0.6 4.2
RoCE (97.8) (11.7) (16.2) (8.6) (3.5) 0.7
Turnover Ratios
Debtors (Days) 17 24 14 24 25 26
Fixed Asset Turnover (x) 25.2 23.8 36.2 11.0 16.6 25.2

Cash Flow Statement (INR m)

Y/E March 2020 2021 2022 2023 2024E 2025E
CF from Operations -21,269 -2,798 -9,221 -6,373 -17 7,514
Cash for Working Capital 131 -7,567 2,483 -1,759 2,126 977
Net Operating CF -21,138 -10,365 -6,738 -8,132 2,110 8,491

Net Purchase of FA -214 -104 -572 -1,014 -1,500 -2,500

Free Cash Flow -21,351 -10,469 -7,310 -9,146 610 5,991
Net Purchase of Invest. 17,566 -52,332 -78,806 5,587 4,500 0
Net Cash from Invest. 17,352 -52,436 -79,378 4,573 3,000 -2,500

Proc. from equity issues 3,916 66,083 90,000 40 0 0

Proceeds from LTB/STB 0 -26 -13 -231 0 0
Others -327 -267 -2,562 -1,148 6,249 6,945
Dividend Payments 0 0 0 0 0 0
Cash Flow from Fin. 3,589 65,790 87,425 -1,339 6,249 6,945
Net Cash Flow -197 2,989 1,309 -4,898 11,358 12,936
Opening Cash Bal. 2,124 1,650 3,043 3,923 2,181 13,852
Forex differences 43 -10 -310 3,399 0 0
Add: Net Cash -197 2,989 1,309 -4,898 11,358 12,936
Closing Cash Bal. 1,971 4,629 4,042 2,424 13,540 26,788
E: MOFSL Estimates

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

22 May 2023 9
 Zomato

NOTES

22 May 2023 10
 Zomato

Explanation of Investment Rating

Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in
the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National
Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for
its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of
Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products. Details of
associate entities of Motilal Oswal Financial Services Limited are available on the website at http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or
derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial
instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and
other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are
completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL
may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage
service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental research and Technical
Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can
have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary
to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg.
No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to
“Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with
professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian
Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the
United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and
under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and
services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act
and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any
investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption
from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission
("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agr eement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,
MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research
analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co. Reg. NO. 201129401Z) which is a holder of a capital markets services license and an
exempt financial adviser in Singapore. As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule of Financial
Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this
report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of "accredited" institutional investors as defined in
section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must
immediately discontinue any use of this Report and inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public
appearance.
- received compensation/other benefits from the subject company in the past 12 months
- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an
inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or
act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
- Served subject company as its clients during twelve months preceding the date of distribution of the research report.

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The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any
way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures
and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources
believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All
such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or
subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not
treat recipients as customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to
any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an
offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation
that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make
their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment
by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an indep endent evaluation of an investment in the securities of companies referred to in
this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not
be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not
suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures
of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject
to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its
associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.
They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as
a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed
therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or
in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction,
where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities
described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to
observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees
from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any
of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,
Email Id: [email protected], Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person Contact No. Email ID
Ms. Hemangi Date 022 40548000 / 022 67490600 [email protected]
Ms. Kumud Upadhyay 022 40548082 [email protected]
Mr. Ajay Menon 022 40548083 [email protected]
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:
ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to [email protected]. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
[email protected], for DP to [email protected].

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