Shares of Zomato Ltd have recovered 141.21% from their 52-week low in a year. The stock fell to a yearly low of Rs 112.50 reached on November 23 last year. The stock of the online food delivery firm is bullish in the short as well as long term as the scrip is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. The multibagger stock is trading near its 52 week high of Rs 298.20 reached on September 24, 2024. It has gained 304% in two years and risen 122.10% in a year.
It has seen very less volatility in the last one year with a beta of 0.8. The stock has a high price to book ratio of 9.93. It has a PE ratio of 143.46.
The stock has a book value per share of Rs 25.80.
In the previous session, Zomato shares opened higher at Rs 271.25. A total of 12.44 lakh shares of Zomato changed hands amounting to a turnover of Rs 33.75 crore on BSE. The market cap of the firm rose to Rs 2.39 lakh crore on Tuesday.
Morgan Stanley has retained its 'overweight' stance on Zomato with a revised target price of Rs 355 from an earlier value of Rs 288 per share.
The global brokerage expects the online food- and quick-commerce aggregator to maintain its near 40 per cent market share in spite of a rise in competition.
"Rising share of quick commerce in India's retail market, strong execution in food delivery/quick commerce, deep balance sheet and large profit pool by 2030 keep us 'Overweight'. We build in adjusted EBITDA breakeven for the next two to four quarters, implying substantial investments in aggressive expansion. We assume margins of 2.2 per cent by F2027 and 5.1 per cent by F2031, implying an annual profit pool of close to $1 billion for this business. We believe the market has assigned a value of Rs 120 per share to Blinkit (vs our PT implied value of Rs 212/share). We see downside support at Rs 160 (-35 per cent from CMP) with potential upside of 37 per cent to our price target," said Morgan Stanley.
However, brokerage firm Macquarie has an 'underperform' stance on the food delivery aggregator with a price target of Rs 130.
Macquarie said it was time to revisit the fundamental building blocks of growth and unit economics for Blinkit and Zomato Food Delivery.
Zomato's current estimates are pricing in its Gross Order Value for the Food Delivery and Quick Commerce business to grow at a Compounded Annual Growth Rate (CAGR) between 18% and 35% over a 10-year period, Macquarie added.
Jigar S Patel, Technical Research Analyst, at Anand Rathi Shares and Stock Brokers finds resistance of the stock at Rs 280 and support at Rs 240.
"Zomato recently witnessed a strong reversal from the Rs 240 level, delivering an impressive bounce in just 7-8 sessions. This swift upward movement indicates significant buying interest around the Rs 240 mark, showcasing the stock's ability to recover sharply from lower levels. However, the rally now faces a crucial hurdle near the Rs 280 mark, which acts as a stiff resistance zone. This resistance is likely to cap further upside in the short term as it could attract profit booking and selling pressure. Given the proximity to this resistance level, it is prudent to lock in profits around the Rs 278–Rs 280 zone to capitalise on the recent rally. Moreover, fresh long positions should be avoided until the stock decisively breaks and sustains above the Rs 280 mark, signaling a continuation of the uptrend. This cautious approach minimizes risk while preserving gains from the recent bounce," said Patel.