HBI Staff | Mumbai 
Domestic brokerage Kotak Institutional Equities is bullish on Zomato, as its quick-commerce arm Blinkit adds new categories to its platform to achieve higher average order value, better unit economics and customer loyalty.
Zomato shares surged 3 percent in the early trade on March 15 but pared most of the gains as the day progressed. At 10.30 am, the stock was quoting Rs 153.25 on the NSE, up 0.4 percent from the previous close.
Kotak expects the food delivery GOV( Gross Order Value) to see a 19 percent CAGR(Compound Annual Growth Rate) over FY23 to FY26. The brokerage issued a target price of INR 190 on the restaurant aggregator, indicating an upside of around 24 percent from the current market price.
Blinkit has been adding new categories and stores to its app, such as books, toys, health, beauty and apparel. Blinkit’s strategy of adding newer categories to its platform serves dual purposes, it helps in cornering a higher wallet share of customers and aids customer retention and improves AOV(Average Order Value) as the customer purchase basket becomes more diversified,” Kotak analysts said in a note on March 15.
