Zomato stock has gained 17 per cent in the last one month. Zomato stock has given 70 percent return in six months. This stock has jumped 24 per cent so far in the year 2024.
New Delhi. The stock of food delivery company Zomato has seen a rise of more than 3 percent today i.e. Thursday. Just last week, the company released the results for the December quarter of the financial year 2024. After the results, many brokerage firms advised investors to invest in Zomato shares. In the last one year, Zomato shares have jumped 212 percent and it has tripled the money of investors in just 12 months.
Last week, after the release of the third quarter results, HSBC, Jefferies and Bernstein had increased the target price on Zomato stock. The brokerage firms had predicted that Zomato’s quick commerce would continue to do better in terms of growth and profit. Now brokerage firm CLSA has now given a buy opinion on Zomato and predicted that the Zomato stock could touch the level of ₹ 227. This target price is about 46 per cent higher as per the closing price of Wednesday (14 February 2024).
CLSA is impressed by profits
The brokerage says that in the last 1 year, Zomato shares have gained more than 200 percent. Whereas, during this period, the Sensex has seen a rise of 17 percent. The third quarter results show a path of stability in profits. The analyst also said that even if there is no significant growth in food delivery, the company’s performance will not be affected much.
These brokerages also gave advice to buy
Apart from CNSA, brokerage firm Morgan Stanley has also given an overweight rating to Zomato shares and set its target price at Rs 150. HSBC has also given a buy rating to this stock and set its target price at Rs 163. Jefferies has given a target price of Rs 205 with a buy recommendation.
Profit was Rs 138 crore
Zomato’s profit in the December quarter of the financial year 2024 was ₹ 138 crores. Whereas, in the same quarter of the previous financial year, the company had a loss of ₹ 347 crores. The contribution margin of the company increased from 6.6% to 7.1%. The gross order value (total value of all orders) of the company’s grocery business doubled. The food delivery business has grown by 27 percent on an annual basis.
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FIRST PUBLISHED : February 15, 2024, 14:27 IST