Zomato stock hit a 52-week high of Rs 79.80 on June 1, 2022 and a 52-week low of Rs 40.55 on July 27, 2022. The market cap of the firm stood at Rs 53,705 crore on BSE. Shares of online food delivery provider Zomato Ltd were in focus today after Nuvama Institutional Equities raised its target price to Rs 85 from Rs 74 on the back of faster than expected improvement in profitability. The target price amounts to an upside of 35% against the previous close of Rs 62.92 on BSE. In today’s trade, Zomato stock touched a low of Rs 62.40 on BSE. Earlier, the stock opened flat at Rs 62.92. In a year, the stock has risen 11.58% and climbed 5.56% in 2023. The stock hit a 52-week high of Rs 79.80 on June 1, 2022 and a 52-week low of Rs 40.55 on July 27, 2022. The stock has gained 54% from its 52-week low.
Total 10.90 lakh shares of Zomato changed hands amounting to a turnover of Rs 6.87 crore on BSE. The market cap of the firm stood at Rs 53,705 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Zomato stock stands at 61.6, signaling it's trading neither in the overbought zone nor in the oversold zone. Zomato stock has a one-year beta of 1.5, indicating high volatility during the period. Zomato stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Nuvama Institutional Equities said, “We continue to expect food delivery to remain a duopoly and see no treat from ONDC for now. We believe, experience and reliability takes preference until the pricing difference is higher than 15%. With ONDC limiting incentives, gap in pricing has narrowed to less than 10% in most case and even higher on ONDC in some cases for Zomato Gold members. Recent news flow also suggests similar action taken by Swiggy as well. We met Swiggy management during our Feb-23 conference where they share their own ambition to turn profitable much faster than they expected until last year. We are raising our TP to Rs 85 (from INR74) on the back of faster-than-expected improvement in profitability.
Motilal Oswal has maintained its target of Rs 70 for Zomato.
“Over the last few days, media reports have been drawing attention to the increasing number of orders placed through ONDC and how this could potentially benefit restaurants due to the difference in take rates compared to Zomato/Swiggy duopoly. We do not perceive direct ordering as a major concern for the industry. However, we see ONDC as potential threat to Zomato (as highlighted in our initiation report), only if it meaningfully scales up across categories, allowing it to achieve greater efficiency compared to the walled gardens. At its current scale, we do not have enough evidence to alter our base case for Zomato. We value the business using DCF methodology, assuming 4% terminal growth rate and 12.5% cost of capital. We reiterate our BUY rating on the stock and a target price of Rs 70, implying a 15% potential upside, ” the financial services firm said.
Zomato will announce its Q4 and March 2023 fiscal earnings on May 19, 2023.
The firm's December 2022 quarter loss widened to Rs 346.6 crore against a loss of Rs 63 crore in the year-ago period. Zomato's revenue from operations rose 75% to Rs 1,948 crore in the December quarter against Rs 1,112 crore in the corresponding period of last year. On a sequential basis, revenue climbed 17% as against Rs 1,661 crore reported for Q2FY23.