Zomato Share Price: Zomato shares gain 15%, remain unbeaten for 5 sessions

The optimism began when Zomato entered into a deal with Paytm to acquire its events and movies ticketing business, which was recently completed. Following this, global brokerage firms such as Jefferies and JP Morgan turned positive on the stock.

Earlier in the month, JP Morgan had hiked the stock’s target price to Rs 240 from an earlier Rs 208 while maintaining an overweight rating. The firm noted that Zomato is leading rapid retail consumer transformation via convenience and selection-focused Quick Commerce. The company is expanding across all metros after proving the model in NCR.

This scale should help drive monetization from channel margins and ad spending. The global brokerage firm expects Zomato to lead the disruption of modern trade and e-commerce.

The firm has raised its forecasts for FY25-27 by 15-41%. Additionally, the company has built a larger “Going Out” business by combining core dining with the new ticketing business.

Meanwhile, another global brokerage firm, Jefferies, set a base case target of Rs 335 (+31%) for Zomato. Jefferies believes that Zomato’s innovative initiatives in food delivery will strengthen the franchise and expects a 20% CAGR in delivery revenue over FY24-27.According to the agreement with Paytm, Zomato was to acquire the entire stake owned by OCL in OTPL and WEPL through a share purchase transaction, making Orbgen Technologies Private Limited (OTPL) and Wasteland Entertainment Private Limited (WEPL) wholly-owned subsidiaries of the food delivery player.The online food delivery giant reported multifold year-on-year growth in its consolidated net profit, reaching Rs 253 crore for the quarter ended June 30, 2024.

For Blinkit, the company’s quick commerce arm, revenues increased 145% year-on-year to Rs 942 crore, while adjusted EBITDA for the same period was Rs -3 crore.

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