Shares of Zomato rose 4 per cent on Thursday to reach a new all-time high; Know what analysts say
Zomato Share Price Today: Shares of Zomato rose 4 per cent on Thursday to reach a new all-time high of Rs 283.60 after global brokerage firm UBS maintained a buy rating on the stock with a target price of Rs 320, driven by optimism about the company’s growth.
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The brokerage noted that industry volumes grew by approximately 2.5 per cent month-on-month in August 2024, adjusted for the number of days.
The competitive dynamic between Zomato and Swiggy continued into Q2FY25, and UBS estimates Zomato’s gross merchandise value (GMV) growth for Q2FY25 at around 7 per cent quarter-on-quarter.
Zomato shares have seen a major rally since global JP Morgan raised its target price on the stock to Rs 340 from Rs 208 earlier. It raised its forecasts by 15-41 per cent for FY25-27, saying the online food aggregator spearheaded rapid retail consumer transformation via convenience and selection-focused quick commerce.
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Zomato was going deeper across all Metros having proven the model in NCR and that its scale should help it drive monetisation from channel margins and ad spending, the brokerage added.
CLSA also recently raised its price target on Zomato to Rs 353 from Rs 350. The stock remains its top pick among Indian consumers due to its rapid growth and Blinkit’s market share.
On the technical front, Zomato is in a strong uptrend where it is breaking out of Flag formation. It created a strong base around their breakout level at Rs 240. Pravesh Gour, Senior Technical Analyst at Swastika Investmart has recommended investors hold the stock with a price target of Rs 280-300 with a stop loss of Rs 240.
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The immediate resistance for Zomato was seen as Rs 280, which has been breached already. Above this, the stock is likely to head towards Rs 300 level, Gaur said, adding that on the downside, Rs 240 is major support at any correction, while Rs 220 is the next critical demand level. “MACD and RSI are supporting the strength of the current movement,” he added.
The multibagger stock has rallied over 123 per cent so far this year, outperforming Nifty’s returns of 14 per cent.
In the past 12 months, the counter has risen around 186 per cent, more than doubling investors’ capital. In comparison, Nifty rose 28 per cent during this period.
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