Zomato Ltd's shares have risen 235% since their 52-week low last year. Zomato's stock, which plummeted to a yearly low of Rs 49 on March 28, 2023, reached a high of Rs 164.45 on the BSE during the current session. However, the stock has fallen 6% during the last two weeks.
Zomato stock is trading neither overbought nor oversold, with a relative strength index (RSI) of 54.7. Zomato shares are trading above their 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. It has experienced relatively little volatility over the last year, with a beta of 0.3. The stock has a high price to book ratio of 8.36. It has a P/E ratio of 122.
The stock's book value per share is 19.14.
On Monday, Zomato shares rose to an intraday high of Rs 164.45 on the BSE. Zomato's stock opened higher at Rs 162.35. Zomato's stock has grown 191% in a year and is expected to rise 28.41% by 2024.
On the BSE, 8.42 lakh Zomato shares changed hands, for a total turnover of Rs 13.55 crore. On Monday, the firm's market capitalization jumped to Rs 1.40 lakh crore.
Global stockbroker UBS expects a 22% increase in value over the previous session's closing price. It has set a target price of Rs 195 for Zomato stock.
According to UBS. "Based on the data for January and February, and assuming similar trends play out in March as in the previous year (plus 2 percent MoM in March 2023), the data suggests a low to mid-single digit QoQ GMV decline in Q4FY24," a statement from the brokerage said.
GMV growth estimates for Q4 could be revised lower, although UBS expects on-year growth to remain solid and within management's guidance of 20% or more.
Foreign brokerage company HSBC has also taken a bullish position on the shares. It has boosted its target price for Zomato shares to Rs 200, believing that digital spending in India will expand. HSBC has assigned a Buy call on Zomato, citing sustained market share gains in meal delivery and more upside potential from rapid commerce. It lifted the target price to Rs 200 per share from Rs 163 before.
CLSA given a target price of Rs 227 to the stock following Q3 earnings.
"For our relative valuation, we move to a PE-based multiple of 40.6x (30% discount to our QSR multiple of 58x) on FY26 EPS of Rs5.85. We assign a 30% discount to our QSR coverage despite faster growth as Zomato is yet to prove the sustainability of profit over extended periods, and there remains lingering concern over pricing power. We also roll forward our valuation to FY26," it said.
Zomato recorded a profit for the third consecutive quarter in December 2023. The online meal delivery company posted a consolidated net profit of Rs 138 crore in Q3, compared to a net loss of Rs 347 crore in the December 2022 quarter. Revenue in the third quarter increased 69% year on year to Rs 3,288 crore, up from Rs 1,948 crore in the December 2022 period.
