Zomato shares rose 129% from 52-week low this year, price targets for 2025 and more 

Shares of Zomato Ltd have more than doubled investor wealth in 2024.The stock surged 125% this year. The stock of the online food delivery firm has surged 129% from its 52-week low of Rs 121.70 reached on January 18, 2024. However, Zomato stock has lost 7% in the last two weeks. The stock is down 8.70% from record high of Rs 304.50 reached on December 5, 2024.

Brokerages are mostly bullish on the outlook of the stock.

Brokerage Bernstein has an outperform stance on the stock of online food delivery firm. It has assigned a target price of Rs 335. Bernstein said Zomato has a wider city presence compared to Swiggy. Swiggy has higher frequency of users. Gross order value per restaurant is higher for Zomato, said the brokerage.

Global brokerage CLSA has an outperform rating on the stock with a price target of Rs 370 per share.

CLSA compared Swiggy's earnings with Zomato's results.

"Swiggy's Q2 results showed a 30 percent year-on-year increase in overall B2C gross order value (GOV), compared to a 23 percent rise in Q1 FY25. In the quick commerce segment, Swiggy's GOV grew 76 percent YoY, trailing Zomato's Blinkit, which reported a 122 percent increase," CLSA said.

The brokerage added that in food delivery, Swiggy's GOV rose 15 percent YoY, while Zomato outpaced it with a 21 percent increase. Both platforms saw similar sequential improvements, with Swiggy at 6 percent and Zomato at 5 percent.

CLSA notes that while the gap between Swiggy and Zomato has stopped widening, Zomato remains 81 percent larger in quick commerce GOV.

Meanwhile, Zomato shares were down 1.64% at Rs 278 in the current session against the previous close of Rs 282.90. A total of 3.40 lakh shares of Zomato changed hands amounting to a turnover of Rs 9.42 crore on BSE. The market cap of the firm slipped to Rs 2.68 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 lower than the 10 day, 20 day, 30 day but higher 5 day, 50 day, 100 day, 150 day and 200 day moving averages.

The multibagger stock has gained 369% in two years and risen 102% in three years.

It has seen very less volatility in the last one year with a beta of 0.7.

Morgan Stanley has an 'overweight' stance on Zomato stock with a revised price target of Rs 355 from an earlier value of Rs 288 per share.

The global brokerage expects the online food-and quick-commerce aggregator to maintain its near 40 per cent market share in spite of a rise in competition.

"Rising share of quick commerce in India's retail market, strong execution in food delivery/quick commerce, deep balance sheet and large profit pool by 2030 keep us 'Overweight'. We build in adjusted EBITDA breakeven for the next two to four quarters, implying substantial investments in aggressive expansion. We assume margins of 2.2 per cent by F2027 and 5.1 per cent by F2031, implying an annual profit pool of close to $1 billion for this business. We believe the market has assigned a value of Rs 120 per share to Blinkit (vs our PT implied value of Rs 212/share). We see downside support at Rs 160 (-35 per cent from CMP) with potential upside of 37 per cent to our price target," said Morgan Stanley.

Motilal Oswal has a target price 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.

Meanwhile, Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has a different stance on the outlook of the stock.

"Zomato has formed a head and shoulders pattern at the current juncture, a bearish reversal structure signalling a potential trend shift from bullish to bearish. This pattern comprises three peaks: a higher central peak (head) flanked by two lower peaks (shoulders), with a neckline connecting their lows. Zomato has not only completed this pattern but also broken below the neckline, confirming a bearish signal. This neckline breach indicates increased selling pressure and a likelihood of further downside. Traders are advised to book profits in the Rs 280–275 zone and avoid initiating new long positions," said Patel.