Zomato’s Stock Reaches 52-Week High, Soars 225% from Low; CLSA, Geojit, Motilal Oswal Recommend Buying

Zomato has seen a significant surge in its share price, with a 4.6 per cent jump to hit a fresh 52-week high of ₹159.20 on the Bombay Stock Exchange (BSE) on Thursday, February 15. The stock has recorded a remarkable growth of over 200 per cent in the last year, as compared to the 17 per cent gain in the Sensex. This marks a significant milestone for the company, after reaching its 52-week low of ₹49 on March 28 last year.

Several brokerage firms have expressed a positive outlook for Zomato, with global brokerage firm CLSA raising its target price to ₹227 while maintaining a buy call. According to CNBC-TV18, CLSA believes that the recent Q3 results demonstrate a clear path to stable profitability, positioning the company as an indispensable part of the profit pool. Despite uncertainties surrounding the food delivery business, CLSA sees a substantial upside in Zomato stock.

In its Q3 FY24 report, Zomato reported a consolidated net profit of ₹138 crore, marking a significant turnaround from a net loss of ₹347 crore in the previous year. The company’s revenue from operations also witnessed a notable growth of 69 per cent, amounting to ₹3,288 crore in the third quarter of the current fiscal year.

Domestic brokerage firm Geojit Financial Services reiterated a buy rating on the stock, emphasizing the company’s solid growth despite muted consumer demand in Q3FY24. Similarly, Motilal Oswal Financial Services maintained a buy call on Zomato, projecting a strong adjusted revenue compounded annual growth rate over the next few years.

The positive outlook from major brokerage firms signifies a significant turnaround for Zomato, positioning the company for continued growth in the food delivery business and other segments. Investors are advised to keep an eye on the evolving market dynamics and consult certified experts before making any investment decisions.