Blinkit More Valuable Than Zomato Food Delivery Biz: Goldman Sachs

Goldman Sachs maintained its ‘Buy’ rating on foodtech major Zomato in its latest report and hiked the price target (PT) for the stock by over 40% to INR 240 from INR 170 earlier.

The updated PT represents an upside of nearly 30% to the stock’s close at INR 184.75 on the BSE on Thursday (April 25). 

Goldman Sachs cited the growth in Zomato’s quick commerce business Blinkit for the increase in the PT.

Goldman Sachs expects Blinkit’s gross order value (GOV) to grow at a CAGR of 53% during FY24 to FY27.

It also expects Blinkit to achieve EBITDA breakeven by Q4 FY24 and generate a higher EBITDA margin than Zomato’s food delivery business by FY30.

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