Zomato share: Zomato, the leading food delivery and restaurant aggregator in India, has been making headlines with its impressive share price performance. According to Business standard Analysts are bullish on the company’s growth prospects, with some predicting a potential upside of up to 50% in the next year.
The current share price of Zomato Ltd is ₹296.90, reflecting an increase of 2.13% from the previous close of ₹290.70 as of September 23, 2024.
Key Highlights for Zomato Shares:
- Current Price: ₹296.90
- Previous Close: ₹290.70
- Price Change: +2.13%
- 52-Week High: ₹286.50
- 52-Week Low: ₹97.81
- Market Capitalization: ₹2,44,050 crore.
Performance Overview:
- 1-Day Return: +1.89%
- 1-Month Return: +4.32%
- 1-Year Return: +170.04%.
The average expected increase for this share over the next year is 5.72%, with a target price of ₹279.91.
Currently, the company has 0.00% of its shares held by promoters, 2.18% held by mutual funds, and 46.13% held by foreign institutional investors (FIIs) based on reports from the June quarter.
Mutual fund holdings dropped slightly from 2.25% in March to 2.18% in June.
Similarly, FII holdings also fell from 47.00% in March to 46.13% in June.
Consistent Earnings Growth and Profitability Expansion
Zomato’s consistent “overdelivery” on the earnings growth front has been a key factor behind the analysts’ optimism. The company’s profitability is expected to have significant room for expansion, driven by its low penetration and strong growth potential.
“Zomato has shown stellar growth in the last few years driven by low penetration. Going ahead, we expect Zomato to deliver strong growth over the next few years as well, driven by order frequency and increase in customer base,” said analysts from Nuvama Institutional Equities.
Blinkit: The Quick Commerce Segment
Zomato’s quick commerce segment, Blinkit, has been a focus area for analysts. The segment’s gross order value (GOV) grew 22.2% quarter-on-quarter to Rs 4,920 crore, with adjusted Ebitda sustaining at breakeven levels.
Analysts believe that Blinkit’s GOV will remain the most important factor driving Zomato’s fair value. The company plans to increase Blinkit’s store count by roughly 4x to 2,000 by FY26, which is expected to drive strong GOV growth in the coming years.
Analysts Target Prices Zomato share
Several notable brokerages have raised their target zomato share price, reflecting their confidence in the company’s growth prospects:
- CLSA: Buy rating, target price of Rs 350
- UBS: Buy rating, target price of Rs 260
- Citi: Buy rating, target price of Rs 280
- Goldman Sachs: Buy rating, target price of Rs 280
- Bernstein: Outperform rating, target price of Rs 275
- Morgan Stanley: Overweight rating, target price of Rs 278
Future Outlook
As Zomato continues to innovate and expand its services, including the recent launch of its ‘District’ app aimed at enhancing the going-out experience, the company is poised for a bright future. This diversification could further boost user engagement and revenue streams, making Zomato a compelling investment opportunity. Investors and market watchers will be keen to see how Zomato navigates the competitive landscape and leverages its strengths to achieve sustained growth in the coming years.
Conclusion
Zomato’s impressive performance and growth potential have caught the attention of analysts, who are bullish on the company’s future prospects. With consistent earnings growth, profitability expansion, and strong performance in the quick commerce segment, Zomato is well-positioned to capitalize on the growing demand for food delivery and restaurant aggregation services in India.
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Disclaimer: The information above represents the opinions of individual analysts or brokerage firms, and does not constitute financial guidance from InfoDean. To make informed investment decisions, we strongly recommend consulting with a qualified financial advisor.
