Zomato share price jumps over 9% to touch new 52-week high; here's why
₹84.50 on Thursday trading session on BSE. The stock price in the last couple of months have given steady returns, according to analysts, and it is witnessing a multi-month breakout backed with volumes. Zomato shares opened at ₹77.80 apiece.
"We expect prices to head towards three digit that is 100 levels in the near term. 75 can be considered as immediate support," said an analyst. Similarly, global brokerage Jefferies set a price target of ₹100 in a report from April for the stock.
"In our base case, we expect a 25% CAGR in delivery revenue over FY22-26E. Unit economics to steadily improve with scale as Zomato unlocks cost efficiencies and as customer willingness to pay for convenience increases. We value Zomato's delivery business at an exit multiple of 1.5x FY25E GM and quick commerce at 0.5x FY25E GMV, to arrive at a price target of ₹100," said the brokerage.
As per trendlyne data, the stock price rose 39.2% and outperformed its sector by 26.2% in the past year, and in today's trading session Zomato shares were trading at high volume of 129.9 million with price gain of 5.74. Brokerages anticipate new-age internet companies to report decent revenue growth and improved operational performance as we start the Q1FY24 earnings season. One of ICICI Securities' top recommendations is Zomato.
Zomato's food delivery Gross Order Value (GOV) is expected to increase 6.8% QoQ (9.2% YoY) in Q1FY24E, according to the domestic brokerage's Q1FY24 preview, which is roughly in line with management's comments from the Q4FY23 earnings call. "We think this was aided by increased participation from Zomato Gold members. We estimate marginal improvement in food AOV (0.8% QoQ), as we think higher cart sizes should more than compensate for
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