Despite recovering significantly from the last 52-week low level the stock is at 11% lower than its last 52-week high of Rs 126.35 reached on November 7, 2023.
Shares of food delivery firm Zomato have recovered more than 155% from its last 52-week low and brokerages see an upward movement in the stock.
The stock closed at Rs 113.2 apiece, up 0.22%, on BSE on Friday, registering a 155.24% gain from its last 52-week low. The food delivery stock had hit a low of Rs 44.35 on BSE on January 25, 2023.
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Notably the stock has gained more than 90% so far this year and over 79% in the past one year period. However, in the past one week the stock has lost over 7%.
Zomato shares were listed at a premium of 53% on NSE at Rs 116 per piece and at Rs 115 on BSE at a premium of 51%, compared to its offer price of Rs 76. However, the stock dropped to a low of Rs 44 level within 6 months since its listing on the bourses on July 23, 2021, eroding the investors’ money.
However, despite recovering significantly from the last 52-week low level the stock is at 11% lower than its last 52-week high of Rs 126.35 reached on November 7, 2023.
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Meanwhile, brokerage Morgan Stanley last week maintained an ‘overweight’ rating on the Zomato stock with a target price of Rs 140 per share, indicating an upside of nearly 24% compared to its closing price on Friday. The brokerage observed that the food delivery platform has an upside potential despite strong outperformance as quick commerce could surprise, according to CNBCTV18.
According to a Business Today report, Osho Krishan, Senior Research Analyst at Angel One, observed that Zomato stock looks positive in the short-term.
“Zomato is hovering in a cycle of higher highs – higher lows on a daily timeframe and looks positive for the short-term period. The bullish gap of Rs 108 is likely to act as a support zone and till it sustains above the same, there is no sign of caution in the counter. On the higher end, the swing high near the Rs 125 zone is likely to be seen as an immediate hurdle and a decisive surpass could only trigger fresh momentum in the counter,” Krishan said.
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In addition, technical analyst Shiju Koothuparambil from Prabhudas Lilladher said that the stock has witnessed some profit booking from the last 52-week high levels, the report added.
“The stock has witnessed some profit booking from the peak zone of Rs 126 level. Near-term support is at Rs 109. The overall bias is maintained positive. A decisive breach below the Rs 102 zone can only weaken the bias,” Koothuparambil was quoted as saying by Business Today.
