Zomato’s share price experienced a significant surge of 12% during early trading today, following the company’s announcement of its first-ever quarterly profit. The stock opened at ₹89, climbed to reach a high of ₹98.39, representing a remarkable 12% jump. It closed at Rs.95.40, a 10.23% higher than previous close on NSE.
In its Q1 earnings report for FY24, released on Thursday, the food delivery platform, Zomato, disclosed a net profit of ₹2 crore, a significant improvement compared to a loss of ₹186 crore in the same period the previous year. The company’s revenue also showed a remarkable increase, amounting to ₹2,416 crore as opposed to ₹1,414 crore in the previous year.
Several domestic brokerage firms have expressed a positive outlook on the stock.
Motilal Oswal Financial Services continues to recommend a “buy” call on the stock, with a target price of ₹110, suggesting a potential upside of 28%.
Nuvama Wealth Management also maintains a “buy” call on the stock and has increased its target price from ₹94 to ₹110.
Similarly, Emkay Global Financial Services reiterates its “buy” call on the stock and has raised the target price to ₹110 from ₹90 previously.
Various global brokerage firms also expressed their views.
Jefferies reaffirmed its “buy” call on Zomato and revised the target price to ₹130.
HSBC also raised its target price for Zomato to ₹102 while maintaining a “buy” call.
UBS continued to recommend a “buy” call on Zomato, setting a target price of ₹90.
Additionally, JPMorgan maintained its ‘overweight’ view on the stock and raised the target price to ₹100.
