Zomato's record high resurfaces as analysts backed Blinkit-led growth
Resurfacing a December 5, 2024 move, Zomato crossed Rs 300 to reach a record Rs 304.50 that day, as Bernstein, CLSA and Morgan Stanley cited stronger food-delivery and quick-commerce growth versus Swiggy. Targets ranged from Rs 335 to Rs 370.
What happened
Zomato hit a record high after Bernstein, CLSA and Morgan Stanley reiterated bullish views and raised targets. Analysts cited Zomato’s superior food-delivery
Key facts
- Record high of Rs 304.50; crossed Rs 300
- Bernstein target price: Rs 335 (20% upside)
- CLSA target price: Rs 370
- Morgan Stanley target price: Rs 355, raised from Rs 288
- Market capitalisation: Rs 2.85 lakh crore
- BSE volume: 34.25 lakh shares; turnover: Rs 101.25 crore
- Zomato quick-commerce GOV growth: 122% YoY; Swiggy: 76% YoY
- Zomato food-delivery GOV growth: 21% YoY; Swiggy: 15% YoY
- Zomato is 81% larger than Swiggy in quick-commerce GOV
- Morgan Stanley expects nearly 40% market share through 2030
Why this matters
Blinkit’s growth lead over Swiggy—122% versus 76% GOV growth—raises the strategic value of last-mile logistics, dark-store density and partnerships that can defend Zomato’s quick-commerce moat.
What to watch
- Blinkit GOV growth relative to Instamart and Zepto, especially whether the gap remains materially above Swiggy’s growth rate.
- Quarterly quick-commerce adjusted EBITDA, contribution margin and cash-burn trends.
- Net dark-store additions, maturity curves and sales per store.
- Customer-acquisition spending, free-delivery offers and average order value trends across major platforms.
- Food-delivery margin resilience, since it finances investor tolerance for Blinkit investment.
- Regulatory developments affecting dark stores, gig-worker costs, delivery fees, product quality or urban zoning.
- Evidence that quick-commerce growth is shifting from low-margin top-up orders toward higher-value grocery baskets.
- Accelerate Blinkit dark-store rollout in high-density urban clusters while selectively expanding into tier-2 cities.
- Increase private-label, fresh-grocery and higher-margin assortment penetration to improve basket economics.
- Bundle food delivery, dining and Blinkit benefits through loyalty programs to raise cross-platform retention.
- Use stronger market capitalization to preserve funding flexibility for quick-commerce investment and potential strategic acquisitions.
- Tighten communication around Blinkit contribution margin, mature-store profitability and return on new-store cohorts as valuation scrutiny rises.