Zomato shares trading at record high: Price targets, valuation, technicals and more

Shares of online food delivery platform Zomato Ltd are trading at their all-time high. The Zomato stock scaled its record high of Rs 160.40 in the previous session on BSE. The stock is trading in the overbought zone as the relative strength index (RSI) of Zomato stock stands at 73.3. Zomato shares are trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

It has seen very less volatility in the last one year with a beta of 0.2. The stock has a high price to book ratio of 8.23. It has a PE ratio of 118.57.

The stock has a book value per share of 19.14.

Zomato shares ended flat at Rs 157.45 on BSE on Monday. Zomato stock opened higher at Rs 157.50. In a year, the Zomato stock has risen 203% and climbed 26.47% in 2024.

A total of 48.96 lakh shares of Zomato changed hands amounting to a turnover of Rs 77.35 crore on BSE. The market cap of the firm rose to Rs 1.38 lakh crore on Monday.

Global brokerage firm CLSA has raised its price target from Rs 181 to Rs 227 while maintaining a buy call.

CLSA said the company was an increasingly indispensable part of the profit pool. The recent Q3 results signaled the path to stable profitability.

“Even in a slower growth scenario for food delivery, with no Zomato Everyday launch, we see FY26 EPS of Rs 5.36, 9 per cent lower than our base case but still 45 per cent upside on our PE-based valuation," said CLSA.

"We move our blended valuation to DCF and a FY26 based PE to align with our consumer/QSR methodology as we believe food delivery and quick commerce are now on a stable profitability path," added CLSA.

Brokerage Geojit has reiterated its BUY rating on the Zomato stock with a rolled forward target price of Rs 174, based on seven times FY26E price/sales.

In its Q3 earnings preview, the brokerage said, "Performance continued to be solid. Despite muted consumer demand, the food delivery business recorded healthy growth. A strong growth momentum in the segments, positive margin, and a leading market position are expected to support the superior performance. Hence, we reiterate our BUY rating on the stock with a rolled forward target price of Rs 174, based on 7x FY26E price/sales."

Financial services firm Motilal Oswal has a buy call on the Zomato stock. It has assigned a price target of Rs 170.

"Adjusted EBITDA margin of 5.3% came in ahead of our estimate of 4.2%. Management continues to expect margin to expand further due to better cost absorption on account of strong growth. We expect Zomato to deliver a strong 70%/41% YoY growth in FY24/FY25, with Blinkit outpacing the food delivery business. We remain positive on the long-term growth opportunity for Zomato. We reiterate our BUY rating on the stock," said the brokerage.

Zomato reported profit for the third straight quarter in December 2023.

The online food delivery provider posted a consolidated net profit of Rs 138 crore in Q3 against a net loss of Rs 347 crore in the December 2022 quarter.

Revenue in Q3 grew 69% year-on-year to Rs 3,288 crore compared to Rs 1,948 crore in the December 2022 quarter.

The company reported a positive EBITDA or Earnings before Interest, Tax, Depreciation and Amortisation of Rs 51 crore compared to an EBITDA loss of Rs 366 crore last year. Zomato reported an EBITDA margin of 1.5% during the quarter.

Zomato upped its revenue growth guidance from 40% to 50% year-on-year.

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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