Zomato shares rallied 124% year-to-date; is it time to book profit in this multibagger?

Shares of online food aggregator Zomato have delivered multibagger returns to investors during this calendar year. Last checked, the stock was trading 0.63 per cent higher at Rs 279.25. At this price, it has ascended by 124.38 per cent in 2024 so far.

The company today informed bourses that its independent director Gunjan Soni has resigned. "This is to inform the Board that due to my increased work commitments, I hereby tender my resignation as an independent director of the company with effect from the close of business hours on October 11, 2024. Consequently, I will also be stepping down as a member of the risk management committee and corporate social responsibility committee of the company," it stated.

Zomato is expected to report healthy second-quarter (Q2 FY25) results. "Zomato has been one of the outperforming stocks in the recent past. Investors can hold on to it with a long-term view. The company's upcoming quarterly results are expected to be profitable," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"The firm dominates the food delivery industry in India. It is well-positioned for ongoing growth on the back of its robust operational metrics and efficient liquidity management," said Atul Parakh - CEO at Bigul.

On technical setup, a few analysts suggested that the stock is trading around its resistance levels after a steep run-up. One can consider booking profits at current levels, one of them said.

"Support will be Rs 274 and resistance Rs 290. A decisive close above Rs 290 level may trigger a further upside towards Rs 300. The expected trading range will be between Rs 265 Rs 300 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"The stock is trading around its resistance zone. Investors should book profits at current levels. One can reenter near Rs 250 level for a potential upside target of Rs 280 with a stop loss of Rs 245," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Zomato stock price is sideways to bearish on daily charts with strong resistance at Rs 290. A daily close below support of Rs 275 could lead to a downward target of Rs 240 in the near term," said Sebi-registered research analyst AR Ramachandran.

The company's stock has a price-to-equity (P/E) ratio of 156.52 against a price-to-book (P/B) value of 10.76. Earnings per share (EPS) stood at 1.77 with a return on equity of (RoE) 6.87.