Shares of Zomato have gained 17% in the past one month. Zomato stock has given 70% profit in six months. The stock has gained 24% so far in 2024.
New Delhi. Shares of food delivery company Zomato saw an increase of more than 3 percent today, Thursday. Last week, the company released the results for the December quarter of fiscal year 2024. After the results, many brokerage firms advised investors to invest in Zomato shares. Shares of Zomato have gained 212% in the past one year and investors’ money has tripled in just 12 months.
Following the release of third quarter results last week, HSBC, Jefferies and Bernstein raised their target price on Zomato stock. Brokerage firms estimate that Zomato’s Quick Commerce will continue to outperform in terms of growth and profitability. Brokerage firm CLSA has now given a buy rating on Zomato and predicted that Zomato’s share could touch the ₹ 227 level. As of Wednesday’s (February 14, 2024) closing price, this target price is about 46% higher.
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CLSA is profit driven.
Shares of Zomato have rallied more than 200 percent in the past one year, the brokerage said. While Sensex has seen an increase of 17% during this period. Third quarter results point to a stabilization in profitability. The analyst also said that even if there is no significant increase in food shipments, there will be no significant impact on the company’s performance.
These brokers also suggested buying.
Apart from CNSA, brokerage firm Morgan Stanley has also given Zomato share an overweight rating and has set a target price of Rs 150. HSBC has also given the stock a buy rating and a target price of Rs 163. Jefferies has given a target price of Rs 205 with a Buy recommendation.
Profit was Rs 138 crore.
Zomato’s profit for the December quarter of FY2024 was Rs 138 crore. While in the same quarter of last fiscal, the company had a loss of ₹ 347 crore. The company’s contribution margin increased to 7.1% from 6.6%. The gross order value (total value of all orders) of the company’s grocery business doubled. The food delivery business has grown by 27% year-on-year.
(Disclaimer: The stock mentioned here is based on the advice of the brokerage houses. If you want to invest in any of them, consult a certified investment advisor first. News 18 of any profit or loss you make. will not be responsible).
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First Publication: February 15, 2024, 14:27 IST
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