{"id":5479,"date":"2025-11-06T12:09:57","date_gmt":"2025-11-06T06:39:57","guid":{"rendered":"https:\/\/www.thewallstreetschool.com\/blog\/?p=5479"},"modified":"2026-01-06T15:11:48","modified_gmt":"2026-01-06T09:41:48","slug":"financial-modelling-analyst-cases","status":"publish","type":"post","link":"https:\/\/www.thewallstreetschool.com\/blog\/financial-modelling-analyst-cases\/","title":{"rendered":"Financial Modelling for Analysts: Top 5 Real-World Case Studies Explained"},"content":{"rendered":"\n

Financial modelling isn\u2019t just about building spreadsheets, it\u2019s about understanding how numbers tell a story. These models help investors, analysts, and decision-makers evaluate business performance and forecast future outcomes. In this article, we\u2019ll look at real-world case studies<\/strong> that show how analysts use financial modelling to make sense of complex business scenarios and market movements.<\/p>\n\n\n\n

Before we dive into the examples, it\u2019s worth noting that all these analyses rely on carefully structured Excel models for finance<\/strong>. These models connect financial statements, test different assumptions, and visualize business performance under multiple scenarios. Whether it\u2019s projecting company earnings or valuing a merger, Excel remains the backbone of practical financial analysis.<\/p>\n\n\n\n

Case Study 1 <\/strong><\/h2>\n\n\n\n

Zomato IPO Case Study: From Losses to Profitability<\/strong><\/h2>\n\n\n\n

Company Overview<\/strong><\/h3>\n\n\n\n

Founded in 2008, Zomato began as a restaurant discovery platform and evolved into India’s leading online food delivery service. The company operates an aggregator-based model, connecting restaurants and customers through a technology-driven platform. Zomato also provides tools for restaurants to acquire new customers and manage deliveries efficiently.<\/p>\n\n\n\n

IPO Overview<\/strong><\/h3>\n\n\n\n
    \n
  • Launch Date<\/strong>: July, 2021
    <\/li>\n\n\n\n
  • Issue Size<\/strong>: \u20b99,375 crore
    <\/li>\n\n\n\n
  • Price Band<\/strong>: \u20b972\u2013\u20b976 per share
    <\/li>\n\n\n\n
  • Subscription<\/strong>: Oversubscribed 38.25 times
    <\/li>\n\n\n\n
  • Listing Price<\/strong>: \u20b9115 per share (52% premium over issue price)
    <\/li>\n\n\n\n
  • Market Cap at Listing<\/strong>: Approximately \u20b91.2 lakh crore<\/li>\n<\/ul>\n\n\n\n

    The IPO was a significant milestone, marking Zomato as the first Indian unicorn to go public. Funds raised were allocated to expand delivery infrastructure, technology platforms, customer acquisition and marketing.<\/p>\n\n\n\n

    Financial Performance (FY19\u2013FY24)<\/strong><\/h2>\n\n\n\n
    Fiscal Year<\/strong><\/td>Revenue from Operations<\/strong><\/td>Net Profit \/ (Loss)<\/strong><\/td><\/tr>
    FY19<\/td>\u20b91,300 crore<\/td>\u2013\u20b91,020 crore<\/td><\/tr>
    FY20<\/td>\u20b92,200 crore<\/td>\u2013\u20b91,180 crore<\/td><\/tr>
    FY21<\/td>\u20b92,786 crore<\/td>\u2013\u20b91,000 crore<\/td><\/tr>
    FY22<\/td>\u20b94,500 crore<\/td>\u2013\u20b91,200 crore<\/td><\/tr>
    FY23<\/td>\u20b98,000 crore<\/td>\u2013\u20b9971 crore<\/td><\/tr>
    FY24<\/td>\u20b912,114 crore<\/td>\u20b9351 crore<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Observation<\/strong>:
    For years, Zomato operated at a loss due to heavy spending on marketing, customer discounts, technology upgrades and partner incentives. But, its FY24 profit marked a turning point, driven by operational efficiency, improved order economics and growth in its quick-commerce arm, Blinkit.<\/em><\/p>\n\n\n\n

    Valuation Drivers and Market Perception<\/strong><\/h2>\n\n\n\n

    Despite persistent losses during its early years, investors valued Zomato based on long-term growth potential and structural shifts in India\u2019s consumption patterns.<\/p>\n\n\n\n

      \n
    • Future Growth Potentia<\/strong>l: The Indian online food delivery market was projected to expand exponentially, supported by digital adoption, urban lifestyles, and increasing disposable income.<\/li>\n\n\n\n
    • Terminal Value Focus<\/strong>: A significant part of Zomato\u2019s valuation came from its projected long-term cash flows, assuming operational leverage and sustained demand growth.<\/li>\n\n\n\n
    • Market Confidence:<\/strong> Zomato\u2019s strong brand, early-mover advantage and market share dominance built trust among retail and institutional investors. The IPO\u2019s massive oversubscription highlighted optimism about future profitability.<\/li>\n<\/ul>\n\n\n\n

      Valuation Techniques<\/strong><\/h2>\n\n\n\n
        \n
      • Discounted Cash Flow (DCF)<\/strong>: Analysts applied DCF models using aggressive growth assumptions to justify high valuations despite negative cash flows in earlier years.<\/li>\n\n\n\n
      • Relative Valuation: <\/strong>Comparisons were made with global peers such as DoorDash and Uber Eats. Higher valuation multiples were accepted due to expectations of market leadership and future profitability.<\/li>\n<\/ul>\n\n\n\n

        Analyst Insights<\/strong><\/h2>\n\n\n\n

        JP Morgan<\/strong>
        <\/strong>In its September 2024 report, JP Morgan raised Zomato\u2019s target price from \u20b9208 to \u20b9340, signaling nearly 40% upside. The report credited this to Blinkit\u2019s accelerated expansion and improved monetization, maintaining an Overweight<\/em> rating on the stock.<\/p>\n\n\n\n

        CLSA<\/strong>
        <\/strong>CLSA assigned a target price of \u20b9353 per share, highlighting Blinkit\u2019s rapid market share growth and its potential to turn profitable by FY25. It projected quick-commerce operations to outpace traditional food delivery in profitability.<\/p>\n\n\n\n

        UBS<\/strong>
        <\/strong>UBS increased its target price from \u20b9260 to \u20b9320 per share, citing stronger-than-expected earnings and the quick-commerce segment\u2019s contribution to margins. UBS projected Zomato to achieve EBITDA breakeven and positive margins by FY25.<\/p>\n\n\n\n

        Key Takeaways<\/strong><\/h2>\n\n\n\n
          \n
        • Investor Readiness<\/strong>: Zomato\u2019s IPO demonstrated that Indian investors were prepared to embrace tech-driven, loss-making startups with potential for scale.<\/li>\n<\/ul>\n\n\n\n
            \n
          • Timing and Brand Equity:<\/strong> The IPO benefited from favorable market conditions and Zomato\u2019s strong consumer recall.<\/li>\n<\/ul>\n\n\n\n
              \n
            • Investor Psychology<\/strong>: Valuations focused on growth narratives rather than past financials, reflecting changing investor attitudes toward digital businesses.<\/li>\n<\/ul>\n\n\n\n
                \n
              • Profitability Turning Point:<\/strong> Zomato\u2019s first profitable fiscal year in FY24 validated early investor optimism and marked the company\u2019s strategic transition from a cash-burning startup to a scalable, profitable enterprise.<\/li>\n<\/ul>\n\n\n\n
                \n