Zomato-Paytm deal: Brokerages retain ‘buy’ calls on Zomato, see up to 51% upside

livemint.com:

Zomato has jumped over 7 percent in 2 sessions after the food delivery firm confirmed discussions with Paytm regarding acquiring Paytm's movies and events business."We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure under applicable law," it said in a regulatory filing. “The above discussion is being undertaken with the intent to strengthen our going-out business further and is in line with our stated position of focusing only on our four key businesses currently," it added.Meanwhile, Paytm has also confirmed.

"The company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s entertainment business, a component of our marketing services, is one opportunity under consideration," it said.On the back of this latest information, brokerages have retained ‘buy’ calls on Zomato with up to 51 percent upside potential.In today's deals, Zomato rose as much as 6.4 percent to its day's high of ₹200.90.

The stock is just 3 percent away from its 52-week high of ₹207.30. Meanwhile, it has soared 177 percent from its 52-week low of ₹72.55, hit on June 23, 2023.Brokerage houses JM Financial and Emkay reiterated their ‘buy’ calls on the stock.