Zomato, the country’s leading food-delivery services concern, on Sunday (June 16) in an exchange filing made a clarification pertaining to news articles on the subject “Zomato in talks to acquire Paytm’s movies, ticketing business”. 

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This voluntary disclosure is being made to clarify our stance on the matter given that any transaction that is considered potentially meaningful may create uncertainty in the market, it said.

‘’We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law,” said the new age-company in its filing.

The company added that the above discussion is underway to bolster our ongoing business and is in line with our stated position of focusing only on our four key businesses currently.

What experts and brokerages suggest on Zomato stock

ICICI Securities in its May 14 report has chosen Zomato as its top pick within the Indian internet space. The brokerage has given a ‘buy’ recommendation on the stock with a target price of Rs 300, implying an upside potential of 61 per cent. 

The brokerage believes the company’s recent innovations in bulk ordering and veg-only fleet should boost revenue growth; while gold plan optimisation and priority delivery should aid further profit improvement. Key risks however cited by the brokerage to the stock’s upside are any slowdown in discretionary spending, negative externalities disrupting business operations.

The consensus recommendation from 26 analysts for Zomato is 'buy', according to stock research portal Trendlyne, with 17 of them giving out a ‘strong buy’ on the stock.

Zomato’s share price performance

The stock has gained over 150 per cent in the last one year and its 52-week low and high prices are Rs 72.6 and Rs 207.2 per share, respectively. Currently, it is trading with over 156 per cent gains from the stock’s 52-week low price. The stock last closed Friday’s session at Rs 186.24 apiece.