Daily Stock Market Reports

Sensex Falls 1,200 Points, Nifty Below 16,950 After Hawkish Fed; Zomato Down 10%


Buy Zomato, target price Rs 175: Jefferies 

Here are some highlights of what the brokerage said: 

–Growth contrast through pandemic shows interesting trend for Zomato vs peers

–See a case for India premium to sustain as seen in other sectors, although short listing history makes it difficult

–Ascribing 1-1.5x of delivery GMV (keeping other parts constant), levels of Rs 70-95 appear to be attractive 

–Base case target price unchanged at Rs 175 at least for now

–Despite correction, Zomato valuation premium stays high compared to global peers given all-round correction

–Difficult to forecast where this settles

–Expect premium valuation to sustain given long runway for growth for food services, share gains by delivery platforms, market structure (two-player market) etc

–Debate remains on what the right premium is, that is key challenge given short-listing history



Read More: Sensex Falls 1,200 Points, Nifty Below 16,950 After Hawkish Fed; Zomato Down 10%

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