Zomato up for third day, hits 52-week high as brokerages expect up to 47% upside

livemint.com:

Zomato hit its 52-week high of ₹113.25 in intraday deals today (October 12, 2023) on the back of a positive growth outlook by two brokerage houses that see an upside of up to 47 percent. The stock has bounced back strongly in the current year after a weak show last year. The stock has jumped over 89 percent this year so far.

It lost 57 percent of investor wealth in 2022. Meanwhile, it has soared over 155 percent from its 52-week low of ₹44.35, hit on January 25, 2023. In the 10 months of 2023 so far, the stock has given negative returns in just two - March (down 4.7 percent) and January (down 16 percent).

The stock has gained over 10 percent in October till date, extending gains for the 7th straight month since April. It surged the most in April, up over 27 percent. After the incredible recovery this year, domestic brokerage houses ICICI Securities as well as Kotak Institutional Equities have ‘buy’ calls on the stock.

The brokerages have also raised target prices for Zomato. ICICI has a target price of ₹160 (up from ₹120 earlier), indicating an upside of almost 47 percent. Kotak, on the other hand, has upped its target price to ₹125 (from ₹110 earlier), implying a potential upside of 15 percent.

However, currently trading at around ₹112, the stock is still around 33 percent away from its record high of ₹169, hit on November 16, 2021. After starting its downward trend in June 2022, the stock re-hit its IPO price a year later in June this year. It is now up over 47 percent from its IPO price of ₹76.