Hyper-local delivery company Blinkit is now valued higher than Zomato‘s core food delivery business, as per a recent report by Goldman Sachs. Goldman Sachs has valued Blinkit at INR 119 per share with an equity valuation of 13 billion dollars. It has surpassed the food delivery business of Zomato, which is valued at INR 98 per share.
After Zomato acquired Blinkit for $568 million in 2022, analysts at Goldman Sachs note that the hyper-local delivery company’s implied valuation has soared to $13 billion due to its improved performance.
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Goldman Sachs recently revised Blinkit’s valuation to $13 billion, up from their previous estimate of $8 billion. This upgrade comes as Goldman Sachs anticipates a roughly 50 percent increase in the company’s gross order value (GOV) compared to estimates from one year ago.
Goldman Sachs pointed out in their note that Blinkit’s implied valuation within Zomato’s sum of the parts (SOTP) has surged to nearly $13 billion, a significant leap from $2 billion in March 2023. They highlighted that the per-share implied value of INR 119 for Blinkit now surpasses that of food delivery, which stands at INR 98, marking the first time this has occurred.
Goldman Sachs maintained its ‘buy’ recommendation on the stock and raised the price target for the food delivery aggregator to INR 240 from the previous INR 170. Among the 28 analysts covering Zomato, 24 advise ‘buy’, while the remainder suggest ‘hold’. The brokerage firm is of the opinion that the market is currently underestimating Zomato’s growth prospects and profit potential in the online grocery sector.
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