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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543320 | NSE: ZOMATO

Zomato Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 14, 2024, 3:39 pm

Market Cap 2,38,045 Cr.
Current Price 270
High / Low298/112
Stock P/E321
Book Value 24.1
Dividend Yield0.00 %
ROCE1.14 %
ROE1.12 %
Face Value 1.00
PEG Ratio8.99

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Zomato Ltd

Competitors of Zomato Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
FSN E-Commerce Ventures Ltd 50,917 Cr. 178230/1401,190 4.570.00 %6.87 %2.44 % 1.00
Fone4 Communications (India) Ltd 11.0 Cr. 6.468.03/3.70 4.180.00 %48.6 %62.7 % 10.0
Cartrade Tech Ltd 5,598 Cr. 1,1791,284/62260.3 4500.00 %4.20 %0.42 % 10.0
Zomato Ltd 2,38,045 Cr. 270298/112321 24.10.00 %1.14 %1.12 % 1.00
Add-Shop E-Retail Ltd 42.5 Cr. 15.034.5/13.2 39.60.00 %6.15 %2.91 % 10.0
Industry Average73,698.25 Cr232.72272.6789.240.00%10.79%9.98%7.75

All Competitor Stocks of Zomato Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales1,0241,1121,2121,4141,6611,9482,0562,4162,8483,2883,5624,2064,799
Expenses1,5601,6011,6621,7211,9732,3142,2822,4642,8953,2373,4764,0294,573
Operating Profit-536-489-450-307-312-366-226-48-475186177226
OPM %-52%-44%-37%-22%-19%-19%-11%-2%-2%2%2%4%5%
Other Income142464130168170173171181212219235236221
Interest3325121615181618202530
Depreciation38393842107155134130128128140149180
Profit before tax-435-67-359-186-261-364-204-1521124161239237
Tax %0%0%0%0%-4%-5%-8%-113%-71%-11%-9%-6%26%
Net Profit-435-67-360-186-251-347-188236138175253176
EPS in Rs-0.55-0.08-0.46-0.24-0.29-0.41-0.220.000.040.160.200.290.20

Last Updated: November 6, 2024, 7:17 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:06 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4661,3132,6051,9944,1927,07912,11415,855
Expenses5583,5564,9092,4616,0438,29012,07115,315
Operating Profit-92-2,243-2,305-467-1,851-1,21143540
OPM %-20%-171%-88%-23%-44%-17%0%3%
Other Income211,28516-200793682846911
Interest69131012497293
Depreciation294384138150437526597
Profit before tax-107-1,010-2,386-815-1,220-1,015291761
Tax %0%0%0%0%0%-4%-21%
Net Profit-107-1,010-2,386-816-1,222-971351742
EPS in Rs-3,070.18-28,574.18-70,096.54-23,123.76-1.54-1.140.400.85
Dividend Payout %0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-843.93%-136.24%65.80%-49.75%20.54%136.15%
Change in YoY Net Profit Growth (%)0.00%707.69%202.04%-115.56%70.30%115.61%

Zomato Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:56%
3 Years:82%
TTM:71%
Compounded Profit Growth
10 Years:%
5 Years:16%
3 Years:34%
TTM:249%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:19%
1 Year:124%
Return on Equity
10 Years:%
5 Years:-10%
3 Years:-5%
Last Year:1%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:50 pm

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.030.030.030.00764836868872
Reserves1,0362,3564577,64415,74118,62419,54520,446
Borrowings186348326527705077491,159
Other Liabilities1527092,1175327511,6322,1942,728
Total Liabilities1,3743,4132,9008,70417,32721,59923,35625,205
Fixed Assets1903891,5911,5391,4046,3446,4488,390
CWIP1110171859
Investments8292,1453242,2054,7186,76511,64511,708
Other Assets3548799854,95911,2048,4835,2455,048
Total Assets1,3743,4132,9008,70417,32721,59923,35625,205

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-2,144-1,018-693-844646
Cash from Investing Activity +1,740-5,245-7,971797-348
Cash from Financing Activity +3596,4028,750-127-207
Net Cash Flow-4513986-17491

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-278.00-350.00-328.00-994.00-71.00-508.00-706.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days20201724142424
Inventory Days28282211
Days Payable565298178112
Cash Conversion Cycle202017-513-257-132-77
Working Capital Days-28-23-1810031720846
ROCE %-115%-135%-12%-13%-6%1%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
FIIs11.31%10.44%9.98%57.87%56.74%54.61%54.43%54.72%54.88%55.11%54.11%52.53%
DIIs4.37%3.05%2.62%6.41%7.43%8.04%9.93%13.04%15.47%15.28%15.79%17.32%
Public81.35%83.60%84.59%33.24%33.57%35.15%33.56%30.42%27.98%28.05%28.64%28.86%
Others2.97%2.91%2.81%2.48%2.26%2.22%2.09%1.82%1.66%1.58%1.45%1.27%
No. of Shareholders8,01,09714,20,33615,45,39618,20,85518,10,84419,10,05817,10,36817,08,10017,27,99619,16,41621,40,94223,56,308

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Bluechip Fund33,636,8832.55919.318,551,2222024-11-1381.32%
UTI Flexi Cap Fund34,984,9573.24876.4818,551,2222024-11-1388.59%
Axis ELSS Tax Saver Fund29,405,0002.05803.6418,551,2222024-11-1358.51%
ICICI Prudential Balanced Advantage Fund30,750,0701.26770.3818,551,2222024-11-1365.76%
Motilal Oswal Midcap Fund25,000,0003.67683.2518,551,2222024-11-1334.76%
Canara Robeco Emerging Equities24,370,8122.61666.0518,551,2222024-11-1331.37%
Franklin India Focused Equity Fund23,500,0004.92642.2618,551,2222024-11-1326.68%
Nippon India Growth Fund22,000,0001.71601.2618,551,2222024-11-1318.59%
HDFC Top 100 Fund - Regular Plan20,407,0711.35511.2618,551,2222024-11-1310%
Axis Focused Fund18,551,2223.550718,551,2222024-11-130%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.41-1.20-1.67-1.51-5.42
Diluted EPS (Rs.)0.40-1.20-1.67-1.51-5.42
Cash EPS (Rs.)1.01-0.63-1.40-21893.03-76712.17
Book Value[Excl.RevalReserv]/Share (Rs.)23.5123.2621.59246389.5815029.37
Book Value[Incl.RevalReserv]/Share (Rs.)23.5123.2621.59246389.5815029.37
Revenue From Operations / Share (Rs.)13.968.465.4964315.7786824.57
PBDIT / Share (Rs.)1.02-0.63-1.77-11049.42-72223.33
PBIT / Share (Rs.)0.41-1.15-1.97-15492.77-75031.20
PBT / Share (Rs.)0.33-1.21-1.60-26294.32-79520.03
Net Profit / Share (Rs.)0.40-1.16-1.60-26336.39-79520.03
NP After MI And SOA / Share (Rs.)0.40-1.16-1.58-26219.87-78905.27
PBDIT Margin (%)7.33-7.46-32.34-17.17-83.18
PBIT Margin (%)2.99-13.64-35.92-24.08-86.41
PBT Margin (%)2.40-14.32-29.11-40.88-91.58
Net Profit Margin (%)2.89-13.71-29.16-40.94-91.58
NP After MI And SOA Margin (%)2.89-13.72-28.83-40.76-90.87
Return on Networth / Equity (%)1.71-4.99-7.32-10.63-517.54
Return on Capital Employeed (%)1.70-4.79-9.06-5.86-103.27
Return On Assets (%)1.50-4.49-6.97-9.33-81.61
Asset Turnover Ratio (%)0.530.360.320.290.74
Current Ratio (X)2.627.5210.608.021.75
Quick Ratio (X)2.587.4610.557.991.75
Interest Coverage Ratio (X)12.35-10.86-112.99-33.97-171.47
Interest Coverage Ratio (Post Tax) (X)5.88-18.93-125.68-47.77-178.14
Enterprise Value (Cr.)157541.8041639.8461319.790.000.00
EV / Net Operating Revenue (X)13.005.8814.630.000.00
EV / EBITDA (X)177.21-78.74-45.220.000.00
MarketCap / Net Operating Revenue (X)13.076.0215.000.000.00
Price / BV (X)7.752.193.810.000.00
Price / Net Operating Revenue (X)13.076.0215.000.000.00
EarningsYield0.00-0.02-0.010.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Zomato Ltd as of November 14, 2024 is: 88.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Zomato Ltd is Overvalued by 67.27% compared to the current share price 270.00

Intrinsic Value of Zomato Ltd as of November 14, 2024 is: 119.92

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Zomato Ltd is Overvalued by 55.59% compared to the current share price 270.00

Last 5 Year EPS CAGR: 35.69%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -131.71, which is a positive sign.
  2. The company has higher reserves (10,731.13 cr) compared to borrowings (484.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (63.50 cr) and profit (15.63 cr) over the years.
  1. The stock has a low average ROCE of -40.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 86.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Zomato Ltd:
    1. Net Profit Margin: 2.89%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 1.7% (Industry Average ROCE: 10.79%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 1.71% (Industry Average ROE: 9.98%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.88
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.58
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 321 (Industry average Stock P/E: 204.5)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Zomato Ltd. is a Public Limited Listed company incorporated on 18/01/2010 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L93030DL2010PLC198141 and registration number is 198141. Currently Company is involved in the business activities of Other information service activities. Company’s Total Operating Revenue is Rs. 3611.00 Cr. and Equity Capital is Rs. 764.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
E-Commerce - Electronics/Food/OthersGround Floor, New Delhi Delhi 110019companysecretary@zomato.com
http://www.zomato.com
Management
NamePosition Held
Mr. Kaushik DuttaChairman & Ind.Director
Mr. Deepinder GoyalManaging Director & CEO
Mr. Sanjeev BikhchandaniNon Executive Director
Ms. Aparna Popat VedIndependent Director
Ms. Gunjan Tilak Raj SoniIndependent Director
Ms. Namita GuptaIndependent Director
Ms. Sutapa BanerjeeIndependent Director

FAQ

What is the latest intrinsic value of Zomato Ltd?

The latest intrinsic value of Zomato Ltd as on 14 November 2024 is ₹88.38, which is 67.27% lower than the current market price of ₹270.00.

What is the Market Cap of Zomato Ltd?

The Market Cap of Zomato Ltd is 2,38,045 Cr..

What is the current Stock Price of Zomato Ltd as on 14 November 2024?

The current stock price of Zomato Ltd as on 14 November 2024 is ₹270.

What is the High / Low of Zomato Ltd stocks in FY 2024?

In FY 2024, the High / Low of Zomato Ltd stocks is 298/112.

What is the Stock P/E of Zomato Ltd?

The Stock P/E of Zomato Ltd is 321.

What is the Book Value of Zomato Ltd?

The Book Value of Zomato Ltd is 24.1.

What is the Dividend Yield of Zomato Ltd?

The Dividend Yield of Zomato Ltd is 0.00 %.

What is the ROCE of Zomato Ltd?

The ROCE of Zomato Ltd is 1.14 %.

What is the ROE of Zomato Ltd?

The ROE of Zomato Ltd is 1.12 %.

What is the Face Value of Zomato Ltd?

The Face Value of Zomato Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Zomato Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE