Zomato shares rally 9%, hit fresh 52-week high
Zomato jumped 9% to hit a fresh 52-week high of Rs 84.5 in Thursday's intraday trade on BSE. At 11.27 am, the scrip was trading 5.5% higher at Rs 81.7 on BSE. The stock has also surged 51% in the last three months.
From its 52-week low of Rs 40.5, it has rallied 109%. Meanwhile, at current market prices, Zomato shares are trading over 11% above the IPO issue price of Rs 76. The Gurugram-based company's shares were offered at around Rs 72-76 during its IPO in 2021.
It had subsequently listed at a significant premium of Rs 125 per share. As per Trendlyne data, the average target price for the stock is Rs 81, which shows a downside of 1% from the current market prices. The consensus recommendation from 26 analysts for the stock is a 'Buy'.
Technically, the stock's day RSI (14) is at 63.8. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 1.7, which is above its Center line, but below the Signal line.
In another development, Zomato temporarily stopped inducting new users on the Unified Payments Interface-based payments application that it launched as a third-party provider in May. The sign-up option for Zomato UPI has been disabled for the past 3-4 weeks, people in the know said. The Gurgaon-based company, which has partnered with ICICI Bank to offer the service, confirmed that Zomato UPI suspended onboarding new users but said it is available to existing users.
"(This has been done) to incorporate feedback received on the onboarding flow. We will start enrolling new users by the end of the month," a Zomato spokesperson said in response to a query from ET. In Q4 FY23, Zomato reported that its earnings before interest, taxes, depreciation, and amortisation (EBITDA) had
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