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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543320 | NSE: ZOMATO

Fundamental Analysis of Zomato Ltd

Basic Stock Data

Last Updated: July 18, 2024, 10:18 pm

Market Cap 1,94,777 Cr.
Current Price 221
High / Low232/77.3
Stock P/E555
Book Value 23.1
Dividend Yield0.00 %
ROCE1.77 %
ROE1.76 %
Face Value 1.00
PEG Ratio12.83

Data Source: screener.in

Competitors of Zomato Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Add-Shop E-Retail Ltd 43.9 Cr. 15.544.0/15.013.9 38.90.00 %6.15 %2.91 % 10.0
Nandani Creation Ltd 70.2 Cr. 40.683.0/36.1143 17.40.00 %6.19 %1.78 % 10.0
Cartrade Tech Ltd 3,919 Cr. 830974/48466.7 4410.00 %4.79 %2.86 % 10.0
Intrasoft Technologies Ltd 214 Cr. 131192/10821.9 1300.00 %7.64 %5.03 % 10.0
Pace E-Commerce Ventures Ltd 64.5 Cr. 28.635.8/15.827.0 32.40.00 %5.41 %3.39 % 10.0
Industry Average862.32 Cr209.1454.50131.940.00%6.04%3.19%10.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6928441,0241,1121,2121,4141,6611,9482,0562,4162,8483,2883,562
Expenses8461,2211,5601,6011,6621,7211,9732,3142,2822,4642,8953,2373,476
Operating Profit-154-376-536-489-450-307-312-366-226-48-475186
OPM %-22%-45%-52%-44%-37%-22%-19%-19%-11%-2%-2%2%2%
Other Income5856142464130168170173171181212219235
Interest43332512161518161820
Depreciation353638393842107155134130128128140
Profit before tax-134-359-435-67-359-186-261-364-204-1521124161
Tax %0%-0%0%0%-0%0%4%5%8%113%-71%-11%-9%
Net Profit-134-361-435-67-360-186-251-347-188236138175
EPS in Rs-3,721.19-0.53-0.55-0.08-0.46-0.24-0.29-0.41-0.220.000.040.160.20

Last Updated: July 13, 2024, 2:13 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 11, 2024, 12:15 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4661,3132,6051,9944,1927,07912,114
Expenses5583,5564,9092,4616,0438,29012,072
Operating Profit-92-2,243-2,305-467-1,851-1,21142
OPM %-20%-171%-88%-23%-44%-17%0%
Other Income211,28516-200793682847
Interest691310124972
Depreciation294384138150437526
Profit before tax-107-1,010-2,386-815-1,220-1,015291
Tax %0%0%0%-0%-0%4%-21%
Net Profit-107-1,010-2,386-816-1,222-971351
EPS in Rs-3,070.18-28,574.18-70,096.54-23,123.76-1.54-1.140.40
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%

Growth

Compounded Sales Growth
10 Years:%
5 Years:56%
3 Years:82%
TTM:71%
Compounded Profit Growth
10 Years:%
5 Years:17%
3 Years:38%
TTM:133%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:180%
Return on Equity
10 Years:%
5 Years:-9%
3 Years:-5%
Last Year:2%

Last Updated: July 17, 2024, 4:51 pm

Balance Sheet

Last Updated: July 11, 2024, 12:15 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital0000764836868
Reserves1,0362,3564577,64415,74118,62319,545
Preference Capital17424425245500
Borrowings12104737270507749
Other Liabilities3279532,3709877511,6322,194
Total Liabilities1,3743,4132,9008,70417,32721,59923,356
Fixed Assets1903891,5911,5391,4046,3436,448
CWIP11101818
Investments8292,1453242,2054,7186,76511,645
Other Assets3548799854,95911,2048,4845,245
Total Assets1,3743,4132,9008,70417,32721,59923,356

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 1,740-5,245-7,971797-347
Cash from Financing Activity 3596,4028,750-127-207
Net Cash Flow-4513986-17492

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-278.00-350.00-328.00-994.00-71.00-508.00-707.00

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 2023
Debtor Days202017241424
Inventory Days282822
Days Payable565298178
Cash Conversion Cycle202017-513-257-133
Working Capital Days-28-23-18100317208
ROCE %-115%-135%-12%-13%-6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
FIIs10.27%11.31%10.44%9.98%57.87%56.74%54.61%54.43%54.72%54.88%55.11%
DIIs4.73%4.37%3.05%2.62%6.41%7.43%8.04%9.93%13.04%15.47%15.28%
Public81.43%81.35%83.60%84.59%33.24%33.57%35.15%33.56%30.42%27.98%28.05%
Others3.57%2.97%2.91%2.81%2.48%2.26%2.22%2.09%1.82%1.66%1.58%
No. of Shareholders7,37,9328,01,09714,20,33615,45,39618,20,85518,10,84419,10,05817,10,36817,08,10017,27,99619,16,416

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis ELSS Tax Saver Fund52,056,1732.17726.4428,079,0922024-07-1885.39%
Motilal Oswal Flexi Cap Fund45,000,0006.88627.9828,079,0922024-07-1860.26%
Kotak Flexicap Fund - Regular Plan44,000,0001.38614.0228,079,0922024-07-1856.7%
Motilal Oswal Midcap Fund40,000,0007558.228,079,0922024-07-1842.45%
ICICI Prudential Balanced Advantage Fund34,348,0870.89479.3328,079,0922024-07-1822.33%
Tata Digital India Fund28,967,0004.17404.2328,079,0922024-07-183.16%
Nippon India Large Cap Fund28,079,0921.83391.8428,079,0922024-07-180%
Mirae Asset Large & Midcap Fund27,785,9351.16387.7528,079,0922024-07-18-1.04%
Axis Bluechip Fund26,673,7151.14372.2328,079,0922024-07-18-5.01%
Kotak Equity Opportunities Fund - Regular Plan26,000,0001.98362.8328,079,0922024-07-18-7.4%

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: 230.15

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.

Undervalued: 4.14% compared to the current price 221

Intrinsic Value: 540.45

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 144.55% compared to the current price 221

Last 5 Year EPS CAGR: 134.82%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -141.00, which is a positive sign.
  2. The company has higher reserves (9,343.14 cr) compared to borrowings (387.57 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of -46.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 92.67, which may not be favorable.
  3. The company has not shown consistent growth in sales (70.43) and profit (-90.86).

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: 1.70% (Industry Average ROCE: %)
      • 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: %)
      • 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: 555 (Industry average Stock P/E: )
      • 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: N/A
      • 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

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, 12A, 94 Meghdoot, 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 fair value of Zomato Ltd?

The latest fair value of Zomato Ltd is ₹230.15.

What is the Market Cap of Zomato Ltd?

The Market Cap of Zomato Ltd is 1,94,777 Cr..

What is the current Stock Price of Zomato Ltd as on 19 July 2024?

The current stock price of Zomato Ltd as on 19 July 2024 is 221.

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

In FY 2024, the High / Low of Zomato Ltd stocks is 232/77.3.

What is the Stock P/E of Zomato Ltd?

The Stock P/E of Zomato Ltd is 555.

What is the Book Value of Zomato Ltd?

The Book Value of Zomato Ltd is 23.1.

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 1.77 %.

What is the ROE of Zomato Ltd?

The ROE of Zomato Ltd is 1.76 %.

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