Zomato Share Price: Zomato, in the first quarter of the financial year 2024 (April-June quarter), reported a net profit of 200 million rupees. The company’s revenue also surged by approximately 70.9% to reach 24.16 billion rupees in the same quarter. This is a significant improvement compared to the net loss of 1.86 billion rupees reported in the same quarter last year when the revenue was 14.14 billion rupees. Zomato’s stock is gaining popularity among brokerage houses after posting profits in the first quarter, surprising everyone. Jefferies, HSBC, and UBS have adopted a bullish outlook, while other brokerages have mixed opinions.
Jefferies has given a “buy” rating on Zomato with a target share price of 130 rupees, up from the previous 100 rupees. They believe that the Q1 results have dispelled all concerns about the company’s ability to generate “respectable” profits, making management and execution capabilities even more credible. Zomato has guided for a 40% compound annual growth rate (CAGR) in topline over the next two years.
- HSBC has given a “buy” rating on Zomato with a target share price of 102 rupees, up from the previous 93 rupees. They expect the company’s revenue to grow by more than 40% in the coming years, with improvements in profitability.
- Fidelity (FDI) expects sustained long-term growth.
- J.P. Morgan has given an overweight rating on Zomato with a target share price of 100 rupees. They believe that the company achieved EBITDA and PAT break-even before FY24’s timeline, which will strengthen investors’ confidence. Management expects more than 20% quarter-on-quarter growth in the coming quarters, and they have raised revenue estimates by 5-8% and margins by 120-400 bps.
- UBS has given a “buy” rating on Zomato with a target share price of 90 rupees. They are pleased with the Q1 results, which exceeded expectations.
- Morgan Stanley has given an overweight rating on Zomato with a target share price of 85 rupees. They were impressed by the strong performance in growth and profitability during the first quarter.
- Nomura has downgraded Zomato with a reduced rating and a target share price of 60 rupees. They feel that the company’s performance may face challenges in the long run.
Please note that the opinions and investment advice mentioned in the news are those of financial experts and investors. It is always recommended to seek advice from certified experts before making any investment decisions.
