Zomato Shares Hit Fresh 52-Week-High: Buy, Sell Or Hold?

Zomato Ltd is a large cap E-Retail/ E-Commerce company that recorded a market cap of Rs 65,030.24 Cr during Thursday's closing session. Zomato shares opened today at Rs 74.80 apiece on the BSE and went on to hit a fresh 52-week-high level of Rs 76.30 during the afernoon deals which surpassed its IPO price of Rs 76 per share for the first time ever since April last year.
Zomato's outstanding success in FY23 significantly contributed to an upsurge in its stock price. Zomato reported an increase of threefold of revenues but an 80% rise in net loss for FY22. During the year, its Ebitda loss increased to Rs 1,844.5 crore from Rs 467.2 crore in FY21.

Zomato's performance in FY23 saw a 28.7% decrease in net loss to Rs 1,040.6 crore. The company's revenue increased by 68.8% to Rs 7,079 crore, while its Ebitda loss shrank by 33.9% to Rs 1,217.9 crore.
Global brokerage Morgan Stanley is bullish on the company with 'overweight' rating and a target price of Rs 85 per share. Jefferies has a 'buy' rating on Zomato, with a target price of Rs 100. Motilal Oswal recommends a 'buy', with a target price of Rs 80, whereas Emkay Global maintains a 'buy' rating, with a target price of Rs 90.

Buy Zomato?

Commenting on the technical outlook of the stock, V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today said "ZOMATO trading at 75 which its recent previous resistance point. Last time price has retraced almost 30% from this point. So, we must experience a pullback till range 70 to 63 (which is a new swing support). After retesting of this resistance breakout 87/95/100/115/130/140/150 with strict stop loss at 49. Right now, price is trading above 50 EMA weekly time frame and 20 EMA at daily Time Frame. RSI is showing 80 at daily and 62 at weekly timeframe. MACD shows a bullish crossover with positive divergence. So, those who are in this stock can hold it for more and if price sustain above 80 trail it at 60 and hold fort targets."
A R Ramachandran, Co-founder & Trainer-Tips2trades said "Zomato stock price is bullish but also overbought on the Daily charts with next resistance at 77.5. Investors should book profits at current levels and wait for a dip near support of 64.5 to buy for better returns."

Disclaimer

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