Shares of Zomato opened higher after a large block deal took place in the stock in the pre-market block window. Zomato shares rallied as much as 5.12 per cent to Rs 99.50 apiece on the BSE.
SoftBank Vision Fund (SVF Global) is likely to offload 1.17 percent stake it holds in food delivery giant Zomato for Rs 940 crore via a block deal, CNBC TV-18 reported on August 29, citing sources.
A total of 10 crore shares will be sold by SVF Growth Fund, at a price of Rs 94 apiece, the sources added. Meanwhile, in the trading session on August 29, Zomato’s scrip settled at Rs 94.65 apiece on the BSE, which was 2.51 per cent higher as against the previous day’s close.
Kotak Securities will be broker to the deal, the report added.
A day earlier, Zomato’s stock had opened 5 per cent higher on the exchanges, after 184 million shares, worth a 2.14 per cent stake, were reported to have changed hands in a block deal.
Shares of Zomato are up 22 per cent in the last one month and 77 per cent in the last six months. Ventura Securities has suggested a target of Rs 156 on the stock for a time horizon of 24 months.
Zomato’s valuation of 3.7 times FY26 EV/sales may appear optically demanding compared to its global peers, it said. But the brokerage expects Zomato’s revenue to grow at a CAGR of 41.9 per cent to Rs 20,215.5 crore by FY26, driven by 31.7 per cent CAGR growth in food delivery revenue to Rs 10,632 crore, Hyperpure CAGR of 62.4 per cent to Rs 6,445.90 crore, dine-out & subscription CAGR of 13.3 per cent to Rs 340 crore and Blinkit’s revenue to grow at CAGR of 51.4 per cent to Rs 2,797 crore.
“We are long-term constructive on the fortunes of Zomato. The industry structure is likely to remain a duopoly of Zomato and Swiggy with limited disruptions from the likes of Amazon and weaker offering propositions from direct ordering companies like DotPe Thrive and ONDC, etc due to limited networks in Indian cities. Coupled with the moats of network effects, branding, last-mile delivery, customer user behaviour (convenience and addiction) and wide geographical reach, we believe that the duopoly is likely to dominate in the visible future,” it said.
Brokerage firm HSBC maintained its buy rating on Zomato and raised its price target to Rs 120 from Rs 102 earlier. The firm wrote that a deep dive into hyperlocal raises further conviction on the long-term value of Blinkit, which is now valued at $5 billion.
The note further said that hyperlocal can become a much bigger business for Zomato in the long-term.
Shares of Zomato are trading 3.7 per cent higher at Rs 98.20. The stock made an intraday high of Rs 99.60.
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