This E-Commerce Stock Zooms 21% In 2 Days; Brokerages Bullish After Q4Fy22

Shares of Zomato since the closing of Friday of Rs. 62.05 has surged to a day high price of Rs. 75.35 per share on the NSE. This implies gains of over 21% in 2 trading sessions.

The stock is trading above 5, 10, 20 and 50 day Simple moving average.

The company's consolidated losses have increased three times in the March ended quarter YoY to Rs. 359.9 crore.

Nevertheless despite a weak set of numbers, several brokerages are bullish on the counter and have given a 'Buy' call with a target price of Rs. 130. The Q4 quarter had been a good one despite re-opening related issue. "Growth drivers will continue to remain strong for the company", believes brokerage.

Another foreign entity Morgan Stanley also is overweight on the counter and has seen a target price of Rs. 135. Q4 numbers were in line, with improved transparency on segment disclosures, the brokerage said.

The firm gave a better outlook for Q1 of this fiscal and planned a tighter framework around capital allocation. With these results, the company is moving in the right direction although it needs consistent execution, said the foreign entity.