ZOMATO

ZOMATO

UBS ON ZOMATO : 27.07.2021

• Initiates on Zomato, Rated BUY, Target at Rs 165/share
* Long runway for growth in Indian food delivery
* Improving unit economics with contribution margin turning positive in FY21
• Expect Zomato to deliver >40% revenue CAGR
• Secular factors such as smaller family sizes, lesser time and willingness to cook
* Valuations are not cheap at FY24e EV to sales of 17x SELL

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