Zomato shares zoom to an all-time high near Rs 200

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Zomato shares zoom to an all-time high near Rs 200

Shares of food delivery and quick commerce company Zomato rose 2 percent in trade to scale a record high of Rs 191.80 as it near the Rs 200-mark.

At 2.33pm, shares of Zomato were trading at Rs 190.55 on the NSE.

Expectations of strong growth in Q4, driven by robust performances of the food delivery as well as Blinkit business have been the triggers behind the spike in Zomato’s share price.

Kotak Institutional Equities also shares a similar view as the firm also anticipates a strong performance from the online food delivery company in the fourth quarter of FY24. Analysts at the firm project a 25 percent year-on-year growth in food delivery gross merchandise value (GMV) and an impressive 99 percent on-year growth in Blinkit GMV.

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You’re right! Zomato’s stock is on a tear. Here’s a breakdown of the news:

  • Reaching New Heights: Zomato’s share price surged close to Rs 200, marking a new all-time high [1].
  • Year-to-Date Performance: Zomato’s stock has gained significantly so far in 2024, with an increase of nearly 55% year-to-date [1].
  • Possible Reasons for the Rise: Analysts attribute the rise to several factors, including:
    • Profitability: Zomato has reported consistent profits in the last few quarters, which is a positive sign for investors [2, 4].
    • Growth Potential: The Indian online food delivery market is expected to continue growing rapidly, which benefits Zomato as a major player [2].
    • Market Optimism: The broader Indian stock market has been performing well, and there’s a general sense of optimism about internet-based companies [2].
    • Upcoming Events: The upcoming Indian Premier League (IPL) cricket season and festive season could potentially boost Zomato’s business, leading to investor confidence [2].
    • Analyst Recommendations: Several brokerages have high target prices for Zomato, indicating their belief in future growth [2].

While Zomato’s future looks promising, remember that the stock market is inherently volatile. It’s always wise to do your own research before making any investment decisions.

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