Jefferies analysts recently visited Blinkit Dark stores in NCR for a perspective on quick-commerce (Q/C) dynamics. In a note, he shared that he was surprised at aspects such as portfolio spread, seasonality, micro focus, etc. and continues to believe that Q/C is at an early stage, and on various aspects including potential gains. There’s a lot of uncertainty.
That said, we are convinced this is not just a fad and 30 minute delivery is here to stay. “Prima facie, Blinkit’s portfolio spread seems broad compared to peers such as Dunzo, Swiggy Instamart and Zepto,” JefferiesThe note said, “The initial narrative on Q/C has been around smaller SKU sizes, as customers would rely on Q/C for ‘top-up’. However, many products such as wheat flour, rice, detergents etc. We were surprised to see large pack sizes in terms of products, suggesting that the use case is not limited to small purchases.”
Global brokerage maintains its buy rating zomato share with a target price of 100. However, according to Jefferies, the major risks could be resurgence of covid, increased competition, growth below market expectations, unfavorable regulations.
Zomato shares made a great debut on the stock exchanges on July 23, 2021, but the stock has since lost more than 52% of its value, due to concerns about valuations and crippling global growth stocks. Investors are also not comfortable with the acquisition of Blinkit (earlier known as Grofers), which Zomato recently acquired 4,447 crore, which acted as a catalyst in the downward movement of food delivery platform in the form of Blinkit, a loss-making start-up.
Its consolidated net loss nearly halved in the first quarter of the current fiscal 186 crores due to higher income. The company had posted a net loss of 360.7 crore in the year-ago period.
During the quarter under review, consolidated revenue from operations grew 16% to 1,414 crore 1,212 crore in the March quarter and up 67% from 844 crore a year ago. This was driven by a 10% sequential jump in its Gross Order Value (GOV) 6,430 crore in Q1FY23.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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