Maintaining their bullish momentum, Zomato‘s shares edged closer to the INR 200 milestone. The foodtech giant’s stock surged to a record peak of INR 191.9 in Friday’s intraday trading session on the BSE.
The stock commenced trading at INR 189.45 and rapidly climbed to its record peak in the early trading hours. Although the shares retraced some of the gains as the day progressed, they ultimately closed at an all-time high of INR 190.50 on the BSE, marking a 1.90% increase from the previous close.
Zomato currently holds a staggering INR 1.68 lakh crore in market value.
Meanwhile, Kotak Institutional Equities has reportedly maintained its ‘BUY’ rating on Zomato and raised the price target (PT) to INR 210 from the previous INR 190. The brokerage cited the company’s robust growth prospects for both its core food delivery business and its quick commerce subsidiary, Blinkit, as the reason for the increased PT.
Continue Exploring: ICICI Securities raises Zomato’s price target to INR 300, citing strong growth and profitability metrics
“Zomato is anticipated to post a food delivery GMV of INR 8,230 Cr, indicating a 3% QoQ fall but a 25% YoY gain.” In its Q3 FY24 shareholder’s letter, Zomato had anticipated above 20% YoY growth in food delivery GMV, as reported by CNBC-TV18, which cited Kotak Institutional Equities.
Regarding Blinkit, it stated, “Despite the substantial 28% YoY GMV growth in Q3 FY24, we anticipate a 15% QoQ growth in Q4 FY24, propelled by the addition of new stores and increased throughput of existing stores.”
Continue Exploring: Blinkit to outgrow Zomato within a year, says CEO Deepinder Goyal
Following a lackluster performance in 2022, Zomato’s shares have made a strong comeback over the past year, driven by the company’s impressive financial results. The Delhi NCR-based foodtech company recorded its third consecutive profitable quarter in Q3 FY24, posting a profit after tax (PAT) of INR 138 Cr.
Continue Exploring:Â Zomato reports third consecutive profitable quarter with INR 138 Cr PAT in Q3 FY24
From INR 36 Cr in Q2 FY24, it sequentially doubled the profit. When the quarter concluded in December 2023, revenue also increased, rising 15% on a QoQ and 68% on a YoY basis to INR 3,288 Cr.
Consequently, the company has become a favorite among investors. Zomato’s shares have surged by 54% year-to-date (YTD) and over 250% over the past 12 months. The majority of brokerages hold a bullish outlook on the stock.
Continue Exploring: Zomato among Jefferies’ top picks for next five years, anticipates 2.5X share price increase by 2029
