Synopsis: Zomato's share price surged 19% post-Q1FY25 results, reaching a record high. Despite a 170% gain over the past year, analysts maintain a positive outlook, with Nuvama Wealth and Motilal Oswal raising target prices based on strong growth and profitability.
Zomato's share price surged by an impressive 170% over the past year until August 1, driven by the company's strong financial performance. The stock soared 19% in morning trade on Friday, August 2, reaching a fresh all-time high of Rs. 278.45, following the announcement of robust Q1FY25 results.
Zomato's consolidated net profit for Q1FY25 skyrocketed to Rs. 253 crore from Rs. 2 crore in the same quarter last year, primarily due to higher gross order value across its food delivery, quick commerce, and going-out verticals. The consolidated revenue for the quarter under review surged to Rs. 4,442 crore compared to Rs. 2,597 crore a year earlier.
Despite these gains, brokerage firms remain optimistic about the stock's future prospects, citing Zomato's continuous growth and profitability.
Brokerage Recommendations:
Nuvama Wealth maintained a buy call on the stock and raised the target price to Rs. 285 from Rs. 245. They highlighted Zomato's consistent delivery on growth and profitability, with management guiding for over 20% growth in the short term in food delivery and plans to expand Blinkit’s dark store count from 639 in Q1FY25 to 2,000 by the end of CY26.
Motilal Oswal Financial Services also maintained a buy call, with a target price of Rs. 300, implying a 28% upside potential. They noted the company's better-than-expected Q1 performance across all metrics.
Disclaimer:
The views and recommendations expressed in this article are those of individual analysts or broking companies. Investors are advised to conduct their own research or consult with certified financial advisors before making any investment decisions. The author and the publication do not hold any responsibility for the financial outcomes of the decisions taken based on this article.
