Zomato shares surged 6% to hit fresh high today. Here's why 

Shares of Zomato climbed 6 per cent in Monday's trade as a couple of brokerages remained positive on the stock's prospects. Foreign brokerage UBS maintained its 'Buy' call on Zomato with an increased target price of Rs 320 against Rs 260 earlier. Last week, Morgan Stanley had maintained 'Overweight' on Zomato with a target price of Rs 278.

The Zomato stock was also in news after CEO at Blinkit Albinder Dhindsa, Zomato's quick commerce unit, said his company crossed all-time high orders in a day in a couple of minutes. "We also hit highest ever OPM (Orders per minute), GMV, chocolate sales and most other metrics today. And at its peak - we hit 693 RPM (Rakhis per minute)," he said.

Zomato shares rose 5.8 per cent to hit a fresh high of Rs 280 on BSE. The stock has climbed 202 per cent in the past one year.

UBS has increased its gross merchandise value (GMV) estimates for Zomato's food delivery by 2-3 per cent for FY26-28 and quick commerce by 20-30 per cent for the same period, following strong Q1 results and what it called 'solid guidance'. UBS said its adjusted Ebitda estimates for the next 1-2 years are up only slightly as investments in building supply for quick commerce will likely result in a more modest margin trajectory.

"We have also increased employee cost estimates to reflect investments in manpower. These changes, coupled with roll forward of our valuations and higher multiples for Ging Out and Hyperpure, lead to higher PT of Rs 320," UBS said.

UBS said Zomato shares are trading at FY27 EV/Ebitda of 35 times against an average of Indian consumer/retail peers at 30 times, with a superior growth and margin expansion profile.

"Zomato's food delivery business is stable, and Blinkit offers a generational opportunity to participate in the disruption of industries such as retail, grocery and e-commerce. Our DCF-based valuation of Rs 300. We reiterate our Buy rating on the stock," MOFSL said on August 1.