Zomato Ltd.'s shares increased for the second straight day in Friday's trading. After closing at Rs 165.50, the stock jumped 4.80% to reach its lifetime high of Rs 173.45. Over the last year, the multi-bagger stock has increased by more than 200 percent.
In light of Blinkit's success and the company's own growth narrative, analysts generally concluded that the counter appeared "bullish."
In the intermediate term, the stock may go near the Rs 200 region. The counter should initially encounter resistance between Rs. 175 and Rs. 178. Although there are bullish tendencies, one should adopt a realistic outlook. Maintain your booking profit at around Rs. 175–180. According to Osho Krishan, Senior Research Analyst-Technical & Derivatives at Angel One, traders can buy the stock if it falls below Rs 165–160 with a target of Rs 200.
For the ensuing years, Zomato appeared to be a steadily improving tale. The food aggregator on the internet has refined its model. In addition to adding new segments, Blinkit is now operating at full capacity. According to Ventura Securities Head of Research Vinit Bolinjkar, "We believe that the stock can do well."
In the third quarter that concluded on December 31, the firm posted a combined net profit of Rs 138 crore. A year prior, it had declared a net loss of Rs 347 crore.
While Zomato's traditional meal delivery business rose by 27% for the quarter, its grocery delivery operation, Blinkit, had a more than twofold increase in gross order value (GOV), or the total amount of all orders made.
Bourses Zomato's securities are now covered by the long-term ASM (Additional Surveillance Measure) framework, according to the BSE and NSE. Exchanges warn investors of significant share price volatility by placing equities in either short-term or long-term ASM frameworks.
The relative strength index (RSI) for the counter after 14 days was 71.76. Oversold is defined as a level below 30, while overbought is defined as a number beyond 70. The price-to-book (P/B) ratio of Zomato's stock is 6.66, while the price-to-equity (P/E) ratio is 124.64. The return on equity (RoE) was 5.35 and the earnings per share (EPS) was 1.33.
