CLSA picks Zomato as its top pick in food delivery space; sees up to 27% potential upside
Zomato shares remained in focus in Mondays session as CLSA maintained its outperform call on the stock.
Zomato shares will be in focus in Monday's session (September 30) as the global brokerage CLSA has continued with its 'outperform' call on the stock. The target pegged for the stock is Rs 353, suggesting an upside of 27 per cent from the previous close.
The brokerage has chosen Zomato as its top pick in the food delivery space. The rating on the stock has been maintained even as the company's rival Swiggy is also set to come with its IPO soon.
Hong Kong-based brokerage said that the company has fared well and is ahead in financial metrics in comparison to Swiggy both in FY24 and Q1FY25.
The brokerage also added that the QSRs are losing their market share to aggregators such as Zomato.
Regarding Swiggy, the brokerage said it will be well-positioned once it fills the funding gap.
The stock as against the industry price to earnings (P/E) of 198.46, commands a highTTM P/E of 155.2.
Zomato share price
The stock in the last 4 sessions has fallen over 6 per cent, while its year-to-date gain is to the tune of 125 per cent.
Zomato- Consensus 'buy' call on the stock
As per the Trendlyne data, 26 analysts gave a consensus buy call on the stock.
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