Zomato Hits ₹304 in Intraday Trading, Eyes New Heights
On December 5, 2024, intraday trading saw shares of the massive meal delivery company Zomato hit an all-time high of ₹304.65, a 6.4% increase that surpassed its previous high of ₹298.25 set in September. With the help of several brokerage upgrades, favorable market sentiments, and its inclusion in the Futures and Options (F&O) category, Zomato’s market valuation has increased to around ₹3 lakh crore.
The announcement by Asia Index Private Ltd. that Zomato will be included to the BSE Sensex index on December 23 will further heighten the enthusiasm.
Brokerage Optimism Boosts Sentiments
Citing rapid commerce and robust expansion in food delivery, global brokerage CLSA increased its target price to ₹370 and maintained its “Outperform” rating. In a similar vein, Japanese company Nomura raised its target price to ₹320, highlighting Zomato’s potential to grow its Blinkit quick-commerce division. With plans to triple store density, Nomura aims to have 2,000 locations by December 2026.
Zomato was also given a “buy” recommendation by domestic brokerage Axis Securities, which set a target price of ₹350. With increased profitability in businesses like Hyperpure and Blinkit, the brokerage anticipates robust growth in the quick-commerce and food delivery sectors. For FY25E–FY28E, they project revenue, EBITDA, and APAT CAGRs of 25%, 60%, and 55%, respectively.
Strategic Funding and Market Positioning
Zomato recently collected ₹8,500 crore through a qualified institutional placement (QIP) by issuing 33.64 million shares at ₹252.62 each in order to keep its competitive edge. The money would be used to support Blinkit’s growth and restore cash reserves, which fell from ₹14,400 crore in FY21 to ₹10,800 crore as of Q2 FY25 as a result of quick-commerce losses from acquisitions such as Paytm’s ₹2,014 crore event ticketing business.
A 21-Month Surge of 500%
Since March 2023, Zomato’s stock has increased by an incredible 496%, from ₹51 to ₹304. The stock had gains in 18 of the 21 months, including a remarkable 142% surge in 2024 alone, which built on a 108.6% advance in 2023.
Investors are nonetheless enthralled by Zomato’s development trajectory as it solidifies its dominance in quick commerce and food delivery.
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