Zomato shares jump 5% to hit all-time high; analysts remain positive on this multibagger

Shares of Zomato Ltd continued to rise for the second straight session in Friday's trade. The stock surged 4.80 per cent to scale its lifetime high of Rs 173.45 over a previous close of Rs 165.50. The multibagger stock has rallied more than 200 per cent in the past one year.

Analysts largely suggested the counter looked 'bullish', given the company's own growth story and Blinkit’s performance.

"The stock has potential to head towards the Rs 200 zone in the medium-term timeframe. Rs 175-178 should act as the first resistance for the counter. There are bullish biases but one should have a pragmatic approach. Keep booking profit at around Rs 175-180-odd levels. If the stock slips below Rs 165-160, then traders can accumulate it for a target of Rs 200," Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, told Business Today TV.

"Zomato looked like a steady compounding story for the next few years. The online food aggregator has perfected its model. It has added different segments and now Blinkit is also firing on all cylinders. We think that the stock can do well," said Vinit Bolinjkar, Head of Research at Ventura Securities.

The company reported a consolidated net profit of Rs 138 crore for the third quarter ended December 31. It had reported a net loss of Rs 347 crore a year earlier.

Zomato's gross order value (GOV) - the total value of all orders placed - at Blinkit, its grocery delivery business, more than doubled, while its mainstay food delivery business grew 27 per cent for the quarter.

Bourses BSE and NSE have put the securities of Zomato under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The counter's 14-day relative strength index (RSI) came at 71.76. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 124.64 against a price-to-book (P/B) value of 6.66.

Earnings per share (EPS) came at 1.33 with a return on equity (RoE) of 5.35.

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