Moneycontrol PRO

Zomato shares zoom 20% after Q1 loss narrows, company appoints four CEOs

Zomato Q1: Food delivery platform Zomato reported a consolidated loss of Rs 186 crore for the quarter ended June which was nearly half the Rs 359 crore reported in the same period last year.

August 02, 2022 / 02:20 PM IST


  • bselive
  • nselive
Todays L/H

Zomato share price gained 20 percent in early trade on August 2 after the company came out with its June quarter earnings on Monday and appointed four chief executives.

Food delivery platform Zomato on August 1 reported a consolidated loss of Rs 186 crore for the quarter ended June which was nearly half the Rs 359 crore reported in the same period last year. Its revenue from operations came in at Rs 1,413.9 crore, up 67.44 percent.

Zomato founder and CEO Deepinder Goyal has mooted a new identity and mission for the food delivery company after its stock suffered massive sell-off pressure last week.

Goyal's note, posted on the company's Slack channel, was written last week, after shareholders approved its acquisition of Blinkit, a grocery delivery startup that was previously called Grofers.

"Now that the Zomato Blinkit deal is approved, we have three companies- Zomato, Blinkit and Hyperpure - in the order of business size/impact. In addition to these three, we also have Feeding India. We are now at a stage of life where we are maturing from running (more or less) a single business to running multiple large companies," Goyal wrote in the message, which Moneycontrol has viewed.

"We are transitioning from a company where I was the CEO to a place where we will have multiple CEOs running each of our businesses , all acting as peers to each other, and working as a super team with each other towards building a single large and seamless organisation. Starting today, we are going to call this larger organisation 'Eternal'," he added.

Catch all the market action on our live blog

Here is what brokerages have to say about stock and the company post June quarter earnings

Goldman Sachs

The foreign brokerage firm has maintained a buy rating on the stock with a target at Rs 100 per share as the GMV/revenue was in line and profitability improved.

The food delivery segment is narrowing losses and acquired firm Blinkit is scaling up at a robust pace, CNBC TV18 reported.

Morgan Stanley

The broking house has kept an overweight rating on the stock with a target price of Rs 80.

Morgan Stanley see results as a good quality beat, driven by a healthy increase in MTUs and sees steady to improving AOVs and better monetisation.

The company is break-even at the segment level for food delivery, while sustained and steady execution over coming quarters will be key for re-rating, CNBC TV18 reported.


The research firm has kept a buy call on the stock with a target price of Rs 95.

It was another strong quarter with EBITDA breakeven in food delivery.

UBS believes growth drivers continue to remain strong and losses continue to reduce on sequential basis.

The management guided for no more minority equity investments. The order volumes are expected to continue to grow.

UBS sees potential of 5-10% steady state EBITDA margin, as hyperpure scales up, CNBC TV18 reported.

At 09:22 hrs, Zomato was quoting at Rs 48.75, up Rs 2.40 or 5.18 percent, on the BSE.

Disclaimer: The views and investment tips expressed by investment experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.

Moneycontrol News
first published: Aug 2, 2022 09:30 am