Shares of online food delivery firm Zomato Ltd have surged 60% in the last six months. The stock is trading in a bull zone according to analysts. It is also headed towards its record high of Rs 175.50 reached on March 4, 2024. Zomato shares have surged 28% this year, making analysts bullish on the stock.
Aditya Gaggar Director of Progressive Shares expects the stock to reach Rs 265 mark if the current leg of rally continues.
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“The stock has given a breakout from a continuation pattern known as the Rounding Bottom Formation and recently, it has completed its pullback move as well. A surge in Volume accompanied a price breakout while indicators are supportive and are pointing towards an extension of the current up-move. As per the pattern breakout, the target is Rs 265,” said Gaggar.
Abhijeet from Tips2trades said, “Zomato stock price is slightly bearish on the Daily charts with strong resistance at 164.4. A daily close below support of 144 could lead to target of 128 in the near term.”
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher said, “On the weekly chart, the stock has given a strong rally in the last year, from a low of Rs 40 to an all-time high of Rs 175 zone. With a small correction from the all-time high level, it has taken support near Rs 145 levels maintaining above the 20EMA moving average to indicate potential strength for further upward rise in the coming days. The RSI is well placed, indicating strength, and, we suggest buying and accumulating this stock for next upside target of Rs 200, keeping the stop loss of Rs 138 of the 20EMA zone. A decisive breach below the Rs 138 levels shall negate our view and thereafter can anticipate for further slide.”
The stock is trading neither in the overbought nor in the oversold zone as the relative strength index (RSI) of Zomato stock stands at 52.6. Zomato shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
It has seen very less volatility in the last one year with a beta of 0.4. The stock has a high price to book ratio of 8.36. It has a PE ratio of 121.95.
The stock has a book value per share of 19.14. In the current session, Zomato shares hit an intraday high of Rs 161.45 on BSE. Zomato stock opened higher at Rs 158.50. In a year, the Zomato stock has risen 191% .
A total of 2.01 lakh shares of Zomato changed hands amounting to a turnover of Rs 3.20 crore on BSE. The market cap of the firm rose to Rs 1.41 lakh crore on Tuesday.
Zomato reported a profit for the third straight quarter in December 2023.
The online food delivery provider reported a consolidated net profit of Rs 138 crore in Q3 against a net loss of Rs 347 crore in the December 2022 quarter. Revenue in Q3 grew 69% year-on-year to Rs 3,288 crore compared to Rs 1,948 crore in the December 2022 quarter.
