Zomato shares log new all-time high; rally 53% YTD

Zomato share price, stock market today: Food delivery company Zomato's shares soared to an all-time high on Friday. The stock jumped as much as 2.6 per cent to Rs 191.9 apiece on BSE. 

At 12:53 pm, the stock held on firmly to the green, trading 2.2 per cent higher for the day at Rs 191.3 apiece.

The new-age stock has delivered a return of nearly 53 per cent on a year-to-date (YTD) basis.

What's driving the gains in Zomato shares? 

Domestic brokerage Kotak Institutional Equities expects the food services platform to log 25 per cent growth in food delivery gross merchandise value (GMV) in the final quarter of FY24. It has given a 'buy' rating on the counter with a target of Rs 210 per share, implying a potential upside of 12 per cent from the previous close.

In the quick commerce (QC) segment, the brokerage expects Blinkit's revenue and GMV to grow 102 per cent and 99 per cent, respectively.

Blinkit's revenue growth could come from new store additions and increased throughput of existing stores, according to the brokerage.

The company's contribution margin will see a jump on the back of healthy advertising revenue, while the restaurant's take rate is also expected to improve to add to the contribution margin, Kotak Institutional Equities said.

Take rate is the commission fee a marketplace charges for a transaction it facilitates on its platform.

Importantly, the company is also reaping benefits after the platform fee has been hiked from January 1, 2024.

Additionally, the brokerage is of the view that the company is well-placed to gain market share. It has also upgraded the company's food delivery and Blinkit's GMV for FY2025-2026.