Zomato Shares Hit 52-Week High For 3rd Day In A Row, Should You Buy Or Sell?

Leading online food delivery provider Zomato Ltd shares have been witnessing an upward rally for the last three days on the bourses. Zomato shares hit fresh 52-week high for 3rd day in a row now. Zomato stock gained 0.96% intraday on BSE and volume also surge by more than 2.15 times on October 12 and by 1.34 times on October 11. Brokerage firm, ICICI Securities appear bullish on Zomato shares and assigned buy call with target price of Rs 160 apiece, indicating an upside of 44.34% if investors buy Zomato stock at current market price of Rs 110.85 per share. Check details below:

Zomato Valuation: According to ICICI Securities in its latest report dated October 11, 2023, "We re-iterate our BUY rating on Zomato and increase our 3 stage DCF-based target price to INR 160 from INR 120 led by earnings upgrades, given improved visibility of profitability and sustained improvement in the underlying operating metrics. Zomato remains our top pick in the Indian internet space."

Key Risk: Slowdown in discretionary spending, negative externalities disrupting business operations, added the analyst.

Zomato Stock Outlook & Return: Current market price of Zomato stock on BSE is Rs 110.85 per share. Its 52-week high price on BSE is Rs 113.25 per share and 52-week low price is Rs 44.35 per share, respectively. The company has a market capitalisation of Rs 95,337.26 crore.

Zomato Financials: The company for the quarter ended June 30, 2023 announced its consolidated net profit at Rs 2 crore as against the loss of Rs 186 crore reported in the corresponding quarter of last fiscal. It declared a loss of Rs 189 crore for the quarter ended March. Meanwhile, its revenue from operations declared at Rs 2416 crore, up 71% YoY against Rs 1414 crore announced in the year ago period.

About Zomato: It was launched in 2010. Its technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs. Customers use Zomato platform to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants.

On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. It also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners. It also provides our delivery partners with transparent and flexible earning opportunities.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.