Zomato shares rallied 111% in 2024 so far; key technical levels to watch out for

Shares of online food aggregator Zomato Ltd on Tuesday settled 0.27 per cent higher at Rs 263. At this closing price, the multibagger stock has ascended by 111.24 per cent on a year-to-date (YTD) basis. Despite the mentioned rise, the scrip has slipped 6.07 per cent from its record high value of Rs 280, a level seen on Monday's (August 19) intraday session.

The stock saw heavy trading volume on BSE today as China's Antfin Singapore Holdings likely sold a 1.54 per cent stake in Zomato via block deals. Over 21.03 crore shares changed hands today. The figure was way more than the two-week average volume of 44.16 lakh shares. Turnover on the counter came at Rs 5,418.93 crore, commanding a market capitalisation (m-cap) of Rs 2,32,242.21 crore.

In November last year, China's Alipay exited Zomato, offloading its entire 3.44 per cent stake in the Indian food delivery platform.

The Gurugram-based food delivery firm's net profit in the June quarter of the current financial year (Q1 FY25) grew multi-fold to Rs 253 crore, from Rs 2 crore in Q1FY24. Revenue from operations jumped 74 per cent year-on-year (YoY) to Rs 4,206 crore in Q1 FY25. In the past few quarters, the company's growth has been driven by Zomato's quick commerce business Blinkit.

On technical setup, support on the counter could be seen at Rs 260, followed by Rs 240 level. And, resistance may be found in the 281-300 zone.

"Zomato's stock has been a stellar performer. One can hold on to it as the counter can touch Rs 300 from current levels. Investors who have made more than 100 per cent returns can consider taking back some capital and continue to hold on to the rest," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Zomato is currently in an upward trend, trading above all its exponential moving averages (EMAs). There is a bullish gap around Rs 240, which is expected to act as a support level in the near future. But, it's difficult to predict the resistance since the stock is in uncharted territory. Potential buying opportunities may arise from any downward movements, with strong resistance levels expected in the Rs 290-300 range," Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 260 and resistance at Rs 281. A decisive close above Rs 281 level may trigger a further upside towards Rs 290. The expected trading range will be between Rs 290 and Rs 250 for the short term."

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 147.94 against a price-to-book (P/B) value of 10.19. Earnings per share (EPS) stood at 1.77 with a return on equity (RoE) of 6.87.