Zomato Stock: Goldman Sachs Sets ₹310 Target Price

Zomato Gets a Bullish Call from Goldman Sachs

Leading global brokerage firm Goldman Sachs has turned bullish on Zomato Ltd, now rebranded as Eternal, assigning a BUY rating with a target price of ₹310 per share. This implies an upside potential of nearly 50% from the current trading level of ₹210.46 (as of April 4, 2025 on NSE).

What’s Driving Goldman Sachs' Optimism?

Concerns Around Blinkit Are Overstated

Goldman Sachs believes the negative sentiment around Blinkit, Zomato’s quick commerce vertical, is exaggerated. Many investors fear Blinkit’s profitability might be permanently impacted, but the brokerage disagrees.

“The valuation is overly pessimistic. Investors are effectively pricing in negligible value for Zomato’s food delivery business or assuming structurally lower EBITDA margins for Blinkit, both of which seem highly unlikely,” the firm stated in its report.

Why Zomato Stock Has Been Under Pressure?

Despite strong fundamentals, Zomato shares have declined over 30% in recent months. The fall is largely attributed to:

Concerns about Blinkit's high operational costs
Slow profitability in the quick commerce segment
Overall market sentiment turning risk-averse in the tech sector

However, Goldman Sachs sees this sell-off as unjustified, noting that the risk-reward ratio is now skewed significantly in favor of investors.

Zomato Share Performance Snapshot

Metric	Value
Current Price (April 4, 2025)	₹210.46
52-Week High	₹315.90
YTD Return	-31.2%
Market Cap	₹1.36 lakh crore

The stock had previously touched a lifetime high of ₹315.90, and the brokerage expects it to reclaim its peak levels in the near-to-mid term.

Strategic Insights: Why Zomato Still Has Growth Potential

1. Diversified Revenue Model

Zomato is not just a food delivery app anymore—it’s a multi-platform business with operations in:

Quick commerce (Blinkit)
Hyperpure (restaurant supplies)
Dining and loyalty programs

2. Improved Cost Efficiency

The company has undertaken serious cost optimization measures, including:

Reducing Blinkit’s delivery radius to focus on dense areas
Rationalizing marketing spend
Streamlining logistics partnerships

3. Evolving Customer Base

With increasing urban demand for convenience, the platform's user base is younger, digitally native, and spending more per order compared to three years ago.

Analysts’ Takeaway

Goldman Sachs is not alone in showing faith in Zomato. Other brokerages have also begun to upgrade their outlooks, citing:

Lower competition in quick commerce
Path to profitability in core delivery segment
Reduced burn rate across verticals

While Zomato still faces execution risks, especially in Blinkit, analysts agree that its core business remains structurally sound.

Investment Disclaimer

This article is meant purely for informational purposes. It should not be considered as investment advice. Please consult your registered financial advisor before making any trading or investment decisions.

Final Word

Goldman Sachs’ bullish call could mark a turning point for investor sentiment around Zomato. With a ₹310 target and undervalued assets, the stock may offer significant upside for long-term investors—if execution aligns with expectations.

Stay updated as we track Zomato’s movements post-Goldman report and how market sentiment evolves over the coming weeks.