Shares of online food aggregator Zomato Ltd gave solid returns on a year-to-date (YTD) basis. The multibagger stock has gained around 103 per cent in 2023 so far. It was last seen trading 0.77 per cent lower at Rs 122.20 today. The company's net profit came in at Rs 36 crore in the second quarter ended September 30, 2023 (Q2 FY24). It had reported a loss last year.
Gross order value (GOV) - the total value of all food delivery orders placed - for the foods business grew 20 per cent in Q2 FY24, led by higher orders. GOV in the segment could grow between 25 per cent and 30 per cent in the third quarter ending December 31 (Q3 FY24), Chief Financial Officer (CFO) Akshant Goyal said in a letter to shareholders.
Zomato's revenue from operations surged over 71 per cent to Rs 2,848 crore in the second quarter.
Technical analysts were positive on the counter. Support could be seen at Rs 120, followed by Rs 115, 110 and 105 levels.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Zomato has seen a strong rebound in the current financial year. The stock is looking robust and is comfortably hovering above all its Exponential Moving Averages (EMAs) on daily time frame. As far as levels are concerned, Rs 110-105 is likely to act as strong support base, while the resistance is placed around Rs 130-136-odd zone in the comparable period."
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The near-term target expected could be around Rs 132-134 levels. If it holds the said levels, then the counter can see Rs 146-148 levels. The near-term support can be maintained near Rs 115 level. A slip below Rs 115 can turn the overall bias weak."
AR Ramachandran from Tips2trades said, "Zomato is bullish on daily charts and it may hit Rs 133 in the near term. Strong support will be at Rs 115"
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, suggested a target price of Rs 132, keeping stop loss placed at Rs 115.
DRS Finvest founder Ravi Singh gave a target price of Rs 130 for Zomato with a stop loss of Rs 120.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
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