Thu Feb 27 04:00:00 UTC 2025: **Zomato Named Top Stock Pick Despite Recent Dip; Emkay Global Bullish on Quick Commerce Future**

**Mumbai, India** – Emkay Global Financial Services has declared Zomato its top stock pick for the month, despite a recent 18% decline in its share price in 2025. The brokerage firm remains confident in Zomato’s prospects, particularly its quick commerce arm, Blinkit, ahead of its inclusion in the Nifty index on March 28, 2025.

Emkay values Zomato using an enterprise value-to-sales (EV/sales) metric, finding it undervalued compared to its competitors. The firm believes the market underestimates the potential of the quick commerce sector and overestimates the impact of competition. They cite Zomato’s strong cash position (9.2% cash-to-market capitalization ratio) as capable of absorbing Blinkit’s current cash burn.

While acknowledging intense competition, Emkay predicts the quick commerce market will consolidate to 2-3 major players, with Blinkit emerging as a dominant force due to its complex fulfillment model, which presents a significant barrier to entry for competitors. Although Zomato’s profitability may remain under pressure in the short term, Emkay expects this to be temporary. They anticipate a positive impact from Zepto’s upcoming IPO, forcing competitors to adopt more profitable pricing strategies. While Zomato’s recent 17% year-on-year growth in food delivery was deemed underwhelming, Emkay attributes this to seasonal factors and expects a recovery in subsequent quarters. Following Zomato’s Q3 results, Emkay set a target price of Rs 310.

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