Zomato Stock Price :Famous food delivery company Zomato is buying the entertainment ticket business of online payment platform Paytm. This deal has been done between the two companies for Rs 2048 crore. This information has been given by Paytm’s parent company One 97 Communications during the exchange filing. After this move of the company, leading brokerage houses are bullish about the stock and are giving high target price with buy advice.
Motilal Oswal : BUY Rating
Brokerage house Motilal Oswal said that as part of its outgoing business, Zomato currently offers dine-out table booking and some live ticketing events, while Paytm’s platform offers ticket booking for movies, sports and live events, which will strengthen Zomato’s “District” app.
The company expects to complete this acquisition in 2QFY25. Zomato’s food delivery business is stable, and Blinkit offers an opportunity to participate in the disruption of industries like retail, grocery and e-commerce. The brokerage house has given a BUY rating on the stock and has given a target price of Rs 300. That is, 15 percent growth is possible in the stock.
Jefferies : BUY rating
Brokerage house Jefferies has given a BUY rating on Zomato and has given a target of Rs 335. That is, 29 percent growth is possible in the stock. According to the brokerage, the valuation of Paytm’s ticketing business acquisition looks attractive in terms of growth forecast. Like food delivery, high return ratio can be seen in stable conditions due to ultimate margin and low capital intensity.
StoxBox : BUY rating
Brokerage house StoxBox has given a BUY rating on Zomato and has given a target of Rs 285. The brokerage says that Zomato’s stock shows a bullish trend, strong momentum and resilience from January 2023. The outlook is better with improving EPS, price strength and buyer demand. The growing food delivery sector in India will support the stock with a stable outlook. The company is showing consistent growth and margins are improving. The company is aggressively expanding Blinkit and investing in its B2B business, Hyperpure.
Bernstein : BUY rating
Brokerage house Bernstein has given a BUY rating on Zomato and a target of Rs 275. According to the brokerage, the acquisition of Paytm’s ticketing business will expand TAM for the company. The company has a strong track record of successfully acquiring consumer technology businesses.
Nomura : BUY rating
Brokerage house Nomura has given a BUY rating on Zomato and has given a target of Rs 280. According to the brokerage, the management believes that the ticketing business acquisition of Paytm will help it focus on areas where it expects to grow the gross order value from Rs 3200 crore in FY24 to Rs 10,000 crore in FY26.
Zomato is making profits
Zomato’s profit jumped 126.5 times year-on-year to Rs 253 crore in the June quarter. Whereas in the same quarter a year ago, the company had a profit of Rs 2 crore. At the same time, the company’s revenue increased by 74 percent year-on-year to Rs 4206 crore. The company benefited from the excellent performance of the quick commerce segment and food delivery service. Talking about the June quarter, this was the 5th consecutive quarter when the company’s income has increased. The margins of all four businesses of the company, food delivery, quick commerce (Blinkit), going out and business to business, saw an increase.
Stock gained 242% from IPO price
Zomato’s stock was listed in the stock market in July 2021. The IPO price was Rs 76. Currently the stock is around Rs 260. That is, it has strengthened by about 242 percent from the IPO price and has proved to be a multibagger for investors. In the last 1 year, this stock has gained 183 percent.
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