1) Zomato News :
As of March 11, 2025, here are the latest developments related to Zomato:
Zomato Rebrands as Eternal Ltd.
Zomato’s shareholders have approved a proposal to rename the parent company to Eternal Ltd. This change reflects the company’s broader vision, expanding beyond food delivery into multiple business segments:
- Zomato – Food delivery services
- Blinkit – Quick-commerce operations
- District – Events and ticketing services
- Hyperpure – B2B supply chain for restaurants
CEO Deepinder Goyal highlighted that this transformation aligns with their long-term growth strategy, focusing on a more mission-driven approach. (Source: Economic Times)
Investigation into Pricing Practices
India’s Competition Commission of India (CCI) has launched an inquiry into major fast-delivery platforms, including Zomato, Swiggy, and Zepto. The probe follows complaints from the All India Consumer Products Distributors Federation (AICPDF), which represents nearly 400,000 distributors. The federation alleges that these companies use deep discounts and “predatory pricing” tactics that harm smaller traditional retailers. The investigation is expected to take time as companies submit their responses. (Source: Reuters)
Concerns Over Quick-Commerce Sustainability
Gopal Srinivasan, Chairman of TVS Capital Funds, has questioned the long-term sustainability of India’s quick-commerce sector, which includes companies like Zomato and Swiggy. While the industry was expected to surpass $6 billion in annual sales by 2024, he warned that the sector may not be financially viable in the long run. He described quick-commerce as a “passing fad”, suggesting that it depends heavily on private equity and venture capital funding rather than strong economic fundamentals. (Source: Reuters)
🔗 References:
Understanding Quick-Commerce and Gopal Srinivasan’s Concerns
What is the Quick-Commerce Sector?
The quick-commerce sector refers to ultra-fast delivery services that promise to deliver groceries, essentials, and daily-use products within 10-30 minutes. Companies like Zomato’s Blinkit, Swiggy Instamart, and Zepto operate in this space, aiming to provide extreme convenience by setting up dark stores (local fulfillment centers) near high-demand areas.
This industry has grown rapidly in India, with an estimated market size expected to surpass $6 billion annually by 2024. Consumers are drawn to the convenience, but the business model requires heavy investments in infrastructure, logistics, and customer discounts to stay competitive.
Gopal Srinivasan’s Concerns on Long-Term Sustainability
Gopal Srinivasan, Chairman of TVS Capital Funds, has voiced strong doubts about the long-term viability of the quick-commerce sector. He argues that:
- High Operational Costs – Companies spend heavily on logistics, dark store rentals, delivery fleets, and rider incentives, making it difficult to maintain profitability in the long run.
- Dependence on Venture Capital – The sector is heavily funded by private equity and venture capital rather than sustainable revenue models. If funding slows down, these businesses may struggle to survive.
- Limited Customer Willingness to Pay – Many quick-commerce platforms rely on deep discounts to attract customers. However, if discounts are removed, consumers may switch to traditional grocery stores or planned shopping rather than paying a premium for instant delivery.
- Competitive Pressure – With major players like Zomato’s Blinkit, Swiggy Instamart, and Zepto fighting for dominance, pricing wars are common. This further erodes profit margins and increases burn rate (spending more money than earning).
- Saturation Risk – Quick-commerce demand is highest in metro cities, but expanding to smaller towns is difficult due to lower order volumes and operational inefficiencies.
Why He Calls It a “Passing Fad”
Srinivasan believes that quick-commerce is not a long-term sustainable industry, labeling it a “passing fad.” He suggests that once investor funding dries up, many companies will either shut down or be forced to merge with larger players to survive.
While the sector is currently booming, he sees its future similar to previous startup bubbles, where heavy initial growth did not translate into long-term success.
2) Tata Power News :
Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to develop 7,000 megawatts (MW) of renewable energy projects in the state. This initiative will include solar, wind, and hybrid energy projects, some of which may incorporate energy storage solutions to enhance reliability. The total estimated investment for this massive renewable energy expansion is around ₹49,000 crore ($5.6 billion).
This agreement aligns with India’s renewable energy goals, particularly the target of achieving 500 GW of non-fossil fuel electricity generation capacity by 2030. Andhra Pradesh itself has ambitious plans to develop over 160 GW of renewable energy capacity, requiring an investment of nearly ₹10 trillion.
🔗 Source: Reuters
Tata Power Stocks Analysis :
Tata Power has traded within a range of ₹326.35 (low) to ₹494.85 (high) over the last year, delivering negative returns of -14.69% during this period. Despite this decline, the stock has not shown significant volatility, indicating stability in price movements.
Why Tata Power Can Be a Good Investment?
- Strong Presence in Renewable Energy
- Tata Power is aggressively expanding in solar, wind, and hybrid energy projects, aligning with India’s goal of 500 GW of non-fossil fuel capacity by 2030.
- The company is involved in large-scale solar projects, EV charging infrastructure, and green hydrogeninitiatives.
- The recent ₹49,000 crore investment in Andhra Pradesh (7,000 MW project) strengthens its position in the renewable sector.
- Steady Revenue Streams from Regulated Businesses
- Tata Power operates in both regulated (long-term power purchase agreements) and non-regulated(market-based pricing) sectors, ensuring stable revenue.
- The distribution business in Delhi, Mumbai, and Odisha provides consistent cash flow.
- Strong Backing from Tata Group
- Being part of the Tata Group, the company benefits from financial stability, strong brand value, and strategic decision-making.
- Growth in EV Charging Infrastructure
- Tata Power has set up over 100,000 home chargers and 5,000+ public EV chargers, making it a leader in India’s EV ecosystem.
- Government Push for Clean Energy
- Policies supporting solar rooftops, energy storage, and power grid modernization create growth opportunities for Tata Power.
Weak Points / Risks
- Debt Burden and Capital-Intensive Nature
- Tata Power has high capital expenditures due to its aggressive expansion in renewables and infrastructure.
- The company’s debt levels remain a concern, requiring careful financial management.
- Regulatory and Policy Risks
- Government policies, tariff caps, and subsidy reductions could impact profitability in the power distribution business.
- Any delay in policy approvals for renewable projects could slow down growth.
- Competition from Other Players
- Reliance, Adani Green, and NTPC are investing heavily in renewables, increasing competition.
- The sector is witnessing price wars, which could affect margins.
- Coal Dependency Still Exists
- While Tata Power is shifting to renewables, a significant portion of its revenue still comes from coal-based power plants.
- Rising coal prices and environmental concerns could impact future earnings.
- Stock Performance and Returns
- Over the last year, Tata Power has delivered negative returns (-14.69%), showing it is not immune to market corrections.
- Investors must be patient for long-term gains, as the renewable energy transition takes time.
all in all
Tata Power remains a strong long-term investment due to its renewable energy focus, steady business model, and Tata Group backing. However, investors must watch for debt levels, regulatory risks, and competition before making investment decisions. For long-term investors, this stock could be a good bet, but short-term fluctuations are possible.
Final Words :
Zomato Good & Bad Points for Investment :
Here’s a table outlining the strengths and weaknesses of investing in Zomato:
| Why Zomato Can Be a Good Investment | Weak Points / Risks |
|---|---|
| Strong Market Leadership – Zomato is one of India’s top food delivery platforms, competing with Swiggy, with a large user base and brand recognition. | Profitability Concerns – Despite strong revenue growth, Zomato has struggled with consistent profitability due to high operating expenses and discounts. |
| Diversified Business Model – Apart from food delivery, Zomato owns Blinkit (quick-commerce), Hyperpure (B2B supplies), and District (event ticketing), reducing dependence on a single revenue stream. | Intense Competition – Faces stiff competition from Swiggy, Amazon, and Dunzo in food delivery and quick-commerce, impacting margins. |
| Quick-Commerce Growth (Blinkit) – The rapid expansion of Blinkit has positioned Zomato as a key player in the 10-30 min grocery delivery segment, a fast-growing market. | Cash Burn in Quick-Commerce – Blinkit is still not profitable, and the quick-commerce industry is capital-intensive, requiring significant funding. |
| Growing Online Food Delivery Market – India’s food delivery market is expected to grow at a double-digit CAGR, driven by increasing internet penetration and convenience-driven consumption. | Regulatory Risks – The Competition Commission of India (CCI) is investigating Zomato over deep discounting and predatory pricing, which could lead to fines or operational restrictions. |
| Operational Efficiency & Cost Cutting – Zomato has improved its unit economics, reducing losses and improving margins. | High Valuation Risk – Zomato’s stock is often valued aggressively, making it susceptible to sharp corrections if earnings disappoint. |
| Strategic Investments & Acquisitions – Zomato’s acquisition of Blinkit and Uber Eats India has expanded its market presence. | Dependence on Restaurant Partnerships – If restaurants raise commission fees or switch to their own delivery systems, Zomato’s revenue could be affected. |
| Government Support for Digital Economy – The Indian government’s push for digital transactions and startup growth indirectly benefits Zomato’s ecosystem. | Economic Slowdown Impact – In times of recession or economic slowdown, consumer spending on food delivery drops, affecting Zomato’s revenue. |
Key Point :
Zomato is a high-growth stock with strong market leadership, diversified businesses, and quick-commerce expansion. However, concerns about profitability, competition, regulatory risks, and cash burn in quick-commerce remain. It can be a good long-term investment, but investors must be prepared for volatility.
Zomato & Tata Power Key Metrics :
Here are Debt/Equity, EPS, ROE, ROA etc key metrics in a table.
| Metric | Tata Power | Zomato |
|---|---|---|
| Debt to Equity | 1.09 | 0.00 |
| Earnings Per Share | ₹11.57 | ₹0.00 |
| Return on Equity | 14.00% | 6.01% |
| Return on Assets | 4.63% | 5.63% |
| P/E Ratio | 34.28 | N/A |
| P/B Ratio | 4.17 | 9.11 |
| Dividend Yield | Data not available | 0.00% |
Key Insights:
- P/E Ratio: Tata Power’s P/E ratio of 34.28 indicates that investors are willing to pay ₹34.28 for every ₹1 of earnings. Zomato’s P/E ratio is not applicable due to negative earnings.
- P/B Ratio: Tata Power’s P/B ratio of 4.17 suggests that the stock is trading at over four times its book value. Zomato’s higher P/B ratio of 9.11 indicates a premium valuation relative to its book value.
- Debt to Equity Ratio: Tata Power has a higher debt-to-equity ratio (1.09) compared to Zomato (0.00), indicating that Tata Power utilizes more debt financing.
- Earnings Per Share (EPS): Tata Power’s EPS is ₹11.57, while Zomato’s EPS is ₹0.00, suggesting that Tata Power is generating earnings per share, whereas Zomato is currently not.
- Return on Equity (ROE): Tata Power’s ROE is 14.00%, higher than Zomato’s 6.01%, indicating that Tata Power is more effective in generating returns on shareholders’ equity.
- Return on Assets (ROA): Zomato’s ROA is slightly higher (5.63%) compared to Tata Power’s (4.63%), suggesting Zomato is marginally more efficient in utilizing its assets to generate profits.
- Dividend Yield: Zomato has a dividend yield of 0.00%, indicating it does not currently pay dividends. Data for Tata Power’s dividend yield was not available.
Happy Investing