Shares of Zomato Ltd soared 4.80 per cent, reaching a lifetime high of Rs 173.45, surpassing its previous close of Rs 165.50.
The multibagger stock has witnessed an impressive rally of over 200 per cent in the past year. Analysts continue to express positivity towards the stock, with many considering it a ‘bullish’ investment.
Osho Krishan, Senior Research Analyst at Angel One, highlighted the potential for the stock to reach the Rs 200 zone in the medium-term timeframe, advising investors to remain pragmatic and book profits around Rs 175-180 levels.
He suggested accumulating the stock if it dips below Rs 165-160 for a target of Rs 200. Vinit Bolinjkar, Head of Research at Ventura Securities, described Zomato as a steady compounding story for the coming years, emphasizing the company’s diversified model and the positive performance of its subsidiary, Blinkit.
Zomato reported a consolidated net profit of Rs 138 crore for the third quarter, a significant improvement from the Rs 347 crore net loss reported a year earlier. The company’s gross order value (GOV) at Blinkit doubled, while its food delivery business witnessed a 27 per cent growth for the quarter.
Despite its impressive performance, bourses BSE and NSE have placed Zomato’s securities under the long-term ASM framework, cautioning investors about potential volatility. The company’s stock exhibits a 14-day relative strength index (RSI) of 71.76, indicating it is currently overbought. Zomato’s stock boasts a price-to-equity (P/E) ratio of 124.64 and a price-to-book (P/B) value of 6.66, with earnings per share (EPS) standing at 1.33 and a return on equity (RoE) of 5.35.
