Zomato share price

After a 170% gain in the last year, The share price of Zomato increased by 19%. Given the Q1 results, is the stock still a good buy?

Zomato Share Price News: Up to the close on August 1, The share price of Zomato had increased by an astounding 170 percent in the previous year. Consolidated net profit for Zomato in Q1FY25 shot up to ₹253 crore from ₹2 crore in the corresponding quarter last year.

Zomato Share Price News

The Zomato share price reached a new all-time high of ₹278.45 in the morning session on Friday, August 2, one day after Zomato released its Q1 results FY25. The price increase was 19%. On the BSE, the stock began trading 5% higher at ₹244 per share.

Zomato’s combined net profit for Q1FY25 jumped to ₹253 crores from ₹2 crores in the same quarter last year, primarily due to greater gross order values across its meal delivery, rapid commerce, and going-out verticals.

zomato net profit

For the reviewed quarter, the total revenue of Zomato was ₹4,442 crore, up from ₹2,597 crore in the same period last year. On Thursday, the stock ended the day 2 percent higher at ₹234.10.

Up to the close on August 1, Zomato’s stock price had increased by an astounding 170 percent in the previous year. Because of the company’s excellent development and profitability potential, the majority of brokerage companies still think the stock is worth buying despite these significant increases.

What Experts Say About Zomato Share Price

zomato total revenue

Following the release of the company’s better-than-expected Q1 scorecard, several brokerages boosted their target prices for Zomato shares and expressed bullish views on the stock.

Nuvama Wealth, a brokerage firm, kept a buy call on the stock and increased the target price from ₹245 to ₹285. Zomato is still fulfilling its promise of rapid growth and increased profitability, according to Nuvama.

zomato stock price

Additionally, brokerage house Motilal Oswal Financial Services kept a buy call on the Zomato stock with a target price of ₹300, indicating a potential upside of 28%.

Zomato’s meal delivery business is steady, according to Motilal, and Blinkit provides a generational chance to take part in the upheaval of sectors like e-commerce, grocery, and retail.

Zomato shares

Additionally, Kotak Institutional Equities kept a buy call on the shares and increased the SoTP-based fair value from ₹225 to ₹270.

Kotak reduced EPS (earnings per share) forecasts by 7-9 percent due to decreased Blinkit near-term profitability, while it increased Zomato’s FY25–27 revenue expectations by almost 4-5 percent due to increasing food delivery and Blinkit revenues.

zomato stock target price

Anand Rathi Share and Stock Brokers’ Senior Manager of Equity Research, Jigar S. Patel, noted that Zomato stock had a notable upswing over the previous two months, surpassing all major key moving averages, such as the 21-day, 50-day, 100-day, and 200-day exponential moving averages (DEMA).

Patel emphasized that if the stock is trading much above these levels, it might be overextended and possibly vulnerable to a drop. A price correction is more likely in these circumstances since investors would start to take profits, which would increase selling pressure.

Read more: Sanstar share price continues to rise following a strong debut. Purchase, sell, or hang onto?

Leave a Reply

Your email address will not be published. Required fields are marked *