Zomato share price in Monday’s trade continued their losing streak and were trading with a cut of 1.71 per cent ot Rs 3.3 per share at Rs 189.15, while at day’s low it hit a price of Rs 184 per share.

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The losses in the food services aggregator stock are triggered even as the global brokerage UBS maintained its buy on the counter with a raised target of Rs 250 from the earlier Rs 195. The newly set target price implies a potential upside of over 30 per cent in the stock price of the new-age stock that has seen its stock rise tremendously.

The brokerage is of the view that quick commerce (QC) growth and margin potential remain under-appreciated and are not fully priced-in.

The company’s detailed TAM & unit economics framework suggests FY24-29e GMV CAGR of c45%, $10.2bn by FY29e, added the brokerage. Also, it expects the company’s FY29e EBITDA margins should touch 9%, almost 2x consensus.

Earlier JM Financial also maintained its buy call and gave a target of Rs 260.

The brokerage highlighted the meteoric rise of Blinkit which is seeing no slowdown 
Zomato’s quick commerce business Blinkit continues to grow exponentially and there are no signs of it slowing down. While this was also implied in the management’s consolidated adjusted revenue growth guidance of 50% plus in the near term, recent media reports suggest the company will double down on its investments to growth

Zomato in the last one year has delivered a whopping return of 258 per cent.

As per the Trendlyne data, mutual fund holding in the stock saw a decline by 0.2 per cent in the last month.

The consensus recommendation on the stock from 25 analysts on the stock is ‘buy’ with 17 of them signalling a strong buy on the counter, Trendlyne data shows.

The 1-year price target set for the stock sees a 14 per cent downside with target at Rs 163 per share.