News Mania Desk/ Piyal Chatterjee / 11th September 2024
Zomato Ltd.’s online meal delivery business saw record highs in its shares on Wednesday, surging for a fifth straight session. In five sessions, the multibagger stock increased by 17%. The stock jumped 5% in the current session to a record high of Rs 281.40 on the BSE, up from the previous closing of Rs 267.60.
The Zomato stock’s RSI of 63.8 shows that it is still trading outside of the overbought area, nevertheless. An overbought zone in the stock is indicated by an RSI above 70.
In comparison to the 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages, the Zomato stock is currently trading higher.
Zomato’s stock has returned 170% over the past year and 120% this year.
With a beta of 0.7, it has experienced relatively little volatility over the past year. With a price to book ratio of 10.37, the stock is expensive. Its PE ratio stands at 150.93.
The share price of the stock is Rs 25.80 at book value.
Zomato shares began trading higher in the current session at Rs 268.50. Zomato shares changed hands on the BSE for a total of 50.22 lakh, translating into a transaction of Rs 138.57 crore. On Tuesday, the company’s market capitalization increased to Rs 2.39 lakh billion.
With a price estimate of Rs 280–300, Swastika Investmart Senior Technical Analyst Pravesh Gour has issued a hold call on the shares. A stop loss of Rs 240 can be set.
Since worldwide JPMorgan increased its target price on the company to Rs 340 from Rs 208 earlier, the stock has experienced a significant surge.
With regard to FY25–27, the brokerage increased its projections by 15–41%, citing the online food aggregator as the driving force behind the swift and convenient retail customer change through selection-focused quick commerce.
Zomato was expanding further into all Metros after proving the strategy in the NCR, and the brokerage noted that its size should enable it to drive revenue from channel margins and advertising expenditure. Additionally, CLSA increased its price estimate last week from Rs 350 to Rs 353. Because of Blinkit’s market dominance and Zomato’s quick rise, the brokerage indicated that Zomato was their top choice for Indian consumers.
