Zomato Stock Price Today : In today’s business, there is a huge fall in the shares of online food delivery platform Zomato. Today the company’s shares weakened by about 6 percent to Rs 182 (Zomato Stock Price), whereas it had closed at Rs 194 on May 13. The company had released its results for the March quarter of the last financial year, which were mixed. The company’s profit stood at Rs 175 crore in the March quarter, whereas the company had suffered a loss of Rs 188 crore in the same quarter a year ago; At present, the company has been successful in maintaining its profit for 4 consecutive quarters. After the results, most of the brokerage houses are bullish on the stock and are giving investment advice (Buy Zomato). The highest target price set by the brokerage is Rs 250, which is 38 percent more than the current price.
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Stock strengthened by 53% this year
Zomato shares have been among the top gainers of this year. The stock has gained 53 percent since January 1. At the same time, the stock has strengthened by almost 200 percent in the last one year. During this period the share price increased from Rs 64 to Rs 194. Rs 207 for the share is 1 year high.
Brokerage House Rating and Target
CLSA
Rating: Buy
Target price: Rs 248
Bernstein
Rating: Outperform
Target price: Rs 230
morgan stanley
Rating: Overweight
Target price: Rs 180
Jefferies
Rating: Buy
Target price: Rs 230
Nomura
Rating: Buy
Target price: Rs 225
City
Rating: Buy
Target price: Rs 235
ubs
Rating: Buy
Target price: Rs 250
Nuwama
Rating: Buy
Target price: Rs 245
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What does the brokerage house have to say?
Brokerage House Nuwama It says that Zomato’s revenue in the March quarter stood at Rs 3560 crore (+8.3% QoQ, +73.2% YoY), which was as expected. EBITDA margin stood at 2.4% (+80bps QoQ) compared to expectations of 2.7%. The PAT of the company was Rs 1750 million which was less than our estimate of Rs 1920 million. Blinkit plans to increase the number of dark stores to 1000 by the end of FY25 compared to 525 in Q4FY24. However, this will affect short term profitability.
Brokerage House UBS Says 1) Guidance for 40%+ annual growth in adjusted revenues over the next few years is good; 2) The company plans to “double” Quik Commerce with plans to add 100 stores in Q1FY25 (526 by end-March) and reach 1000 stores by end-FY25; 3) Despite Blinkit’s rapid expansion, adjusted EBITDA margins for the next few quarters are “around zero”, with a 4-5% medium-term target; 4) Target to increase Quick Commerce penetration in top 8 cities (after Delhi NCR) to Delhi level, which can lead to 4x growth in GOV in those cities; 5) ESOP cost has increased in Q4FY24 due to grant of ESOPs to Blinkit leadership team and senior employees. This is expected to increase further, but overall employee costs as a percentage of revenue will continue to decline. It has been proposed to create an additional ESOP pool of 2 percent of the outstanding shares.
(Disclaimer: The advice for investing or selling stocks has been given by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
