Zomato’s stock experienced a 1% decline in early trade on January 15, following a block deal involving 4.5 crore shares of the online food aggregator, with a total transaction value of Rs 622 crore. The buyers and sellers in the transaction were not immediately identified as reported by Moneycontrol. As of 9:17 am, Zomato’s stock price was Rs 138.2, down by 1.03% from the previous session’s closing price on the NSE.
On January 11, HSBC, a global brokerage firm, issued a “buy” rating on Zomato’s stock and raised the target price to Rs 150, indicating a 9% upside from the current levels. According to analysts at HSBC, Zomato’s long-term prospects remain positive despite potential growth challenges in 2024. They highlighted the company’s reliance on the continued expansion of its quick commerce business as a key risk factor.
Analysts at Elara Securities also recommended a “buy” call on Zomato’s stock with a target price of Rs 150. They emphasized the potential for improved profitability in the food delivery business through higher convenience fees, advertising income, and restaurant commissions.
Zomato recently introduced a new feature called “daily payouts,” aimed at supporting its network of restaurant partners. This feature, currently available for restaurants handling 100 or fewer monthly orders, follows discussions with various restaurants to address financial challenges associated with the traditional weekly payout system.
Over the past six months, Zomato’s stock has surged by over 73%, outperforming the benchmark index Nifty 50, which has risen by 11%.
