Any thoughts on the results?
The story is going Zomato’s way, they are able to show the growth and EBITDA growth and the bull market is rewarding them for it. I am starting to worry about the valuation, it is at a PE of 384.
I did some basic maths and here is the summary:
| Revenue | |||||
|---|---|---|---|---|---|
| Zomato | Blink it | Going out | B2B | ||
| 2024 | ₹32,224 | ₹12,469 | ₹3,225 | ₹3,172 | ₹51,090 |
| 2025 | ₹38,669 | ₹19,950 | ₹6,450 | ₹6,344 | ₹71,413 |
| 2025 | ₹46,403 | ₹31,921 | ₹12,900 | ₹12,688 | ₹103,911 |
| Adjusted EBITDA | |||||
| Zomato | Blink it | Going out | B2B | ||
| 2024 | 3.30% | -1% | 0% | -4% | |
| 2025 | 3.70% | 1% | 1% | 0% | |
| 2025 | 4% | 3% | 2% | 4% | |
| Profit at EBIDTA level | |||||
| Zomato | Blink it | Going out | B2B | Total | |
| 2024 | ₹1,063 | -₹125 | ₹0 | -₹127 | ₹812 |
| 2025 | ₹1,431 | ₹200 | ₹65 | ₹0 | ₹1,695 |
| 2025 | ₹1,856 | ₹958 | ₹258 | ₹508 | ₹3,579 |
Assumptions
- Food delivery grows at 20%, Blink it at 60%, Going out at 100% and B2B at 100%
- All Adjusted EBITDA are assumptions
Now even if PBT (Profit at EBIDTA) grows the above assumptions and 2 year forward PE is around 80. I am trying to get my head around if this is correct and if yes is the valuation is justified.
Dic: Invested and Biased.
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