Zomato shares rise 58% from 52-week low, can they breach record high?

Shares of Zomato Ltd gained 3% in early deals today after brokerage Bernstein reaffirmed its bullishness on the food delivery provider. With today's rally, the stock has risen 58% from its 52-week low. The stock fell to its 52-week low of Rs 144.30 on March 14, 2024 and reached a record high of Rs 304.50 on December 5, 2024. However, the stock which surged 125% in 2024 has fallen 17% this year. 

Bernstein maintained its 'outperform' stance on Zomato and assigned a target price of around Rs 310 per share. The brokerage said competition in quick commerce remains a key debate, led by aggressive expansion and rising marketing spends across Zomato, Swiggy, and Zepto. However, unlike the phase before IPO, focus is now more balanced - pursuing growth while ensuring medium-term profitability, added Bernstein. 

The brokerage expects a rational limit to price wars due to Swiggy’s lower margin structure even if competition intensifies in the coming quarters. The brokerage expects Zomato to strengthen its leadership in quick commerce.

Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has aassigned a target price of Rs 240 to the stock with a stop loss of Rs 196. 

"Zomato has been trading within the Rs 240-206 range for the past month, indicating a balance between buyers and sellers. A comparison of last 4 week’s price action suggests no significant breakout or breakdown, confirming a lack of initiative activity beyond this range. This signals a well-defined trading zone. Traders can capitalize on this by buying around Rs 210-212, expecting a move toward the Rs 240 target. A stop-loss below Rs 196 on a daily closing basis ensures risk management," said Patel. 

In the current session, Zomato stock rose 3% to Rs 229.30 against the previous close of Rs 222.60 on February 25, 2025. A total of 4.71 lakh shares of Zomato changed hands amounting to a turnover of Rs 10.68 crore on BSE. The market cap of the firm climbed to Rs 3.05 lakh crore on Tuesday. 

The stock of the online food delivery firm is bullish in the short as well as long term as the scrip is higher than the 5 day, 10 day, 20 day, 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages. 

The multibagger stock has gained 40% in a year and risen 320% in two years. It has seen very less volatility in the last one year with a beta of 0.9. 

Brokerage Motilal Oswal has a price target of Rs 330 on the stock. 

"Zomato raised Rs 8500 crore via QIP to invest in Blinkit for marketing, scaling operations, and expanding its dark store network, targeting 1,000 stores by FY25. While the food delivery business is stable, Blinkit continues to lead the quick commerce market with GOV up 25 per cent QoQ/120 per cent YoY. We expect Zomato to report a PAT margin of 4.7 per cent, 8.6 per cent and 12.9 per cent in FY25, FY26 and FY27, respectively," said the brokerage.