Brokerages raise targets after Zomato's above-estimate Q3 results; Jefferies says stock will cross Rs 200 hurdle

Stock to Buy Zomato: Zomato had a good December quarter as Food delivery business firm reported a jump in its consolidated profit after tax. On the back of impressive results, Zomato hit a 52-week high of Rs 151.45 on Friday and closed the trading session up by 3.78 per cent, or Rs 5.45, at Rs 149.45. Zomato has turned the company from loss to profit Year-on-Year in the December quarter, from a loss of Rs 347 crore to a profit of Rs 138 crore. After the results, brokerage house is bullish on Zomato shares (Zomato Share Price).

In the last one year, the Zomato stock has increased by more than 150 per cent.

Zomato Share Price Target: What CLSA, Jefferies, Goldman Sachs and JP Morgan say

After better-than-expected December quarter results, brokerage Nomura has upgraded the rating of Zomato from 'Reduce' to 'Buy'.

Also, the target price has been increased from Rs 75 to Rs 180 per share. The brokerage says that the results have been better.

Jefferies has maintained a buying advisory on Zomato.

The target price has been increased from Rs 190 to Rs 205.

The brokerage says that the results of the third quarter have been good.

Adjusted EBITDA estimates for FY24-26 have been increased by 4-10 per cent.

CLSA has asked for shopping in Zomato.

The target has been increased from 168 to 181.

The brokerage says that EBITDA and net profit have been better than expected.

Food delivery macro remained weak but has gained market share.

The outlook remains positive. Management has increased the near-term forecast from 40 per cent to 50 per cent.

JP Morgan has maintained its 'overweight' view on Zomato.

The brokerage has increased the share  price target from Rs 170 to Rs 175.

Goldman Sachs has also given a 'buy' call on Zomato.

It has increased the target from Rs 160 to 170.

HSBC has also increased the target from Rs 150 to Rs 163 with buying advice.

Morgan Stanley has maintained an 'overweight' rating on Zomato with a target of Rs 150.

Zomato Share Price History

Zomato's stock has seen a strong rise in the last one year. The one year return of the stock has been more than 180.39 per cent. The returns in 6 months have been nearly 60 per cent. In the last one month this share has increased by nearly 11 per cent. In the trading session of Friday (9 February 2024), Zomato shares jumped more than 5 percent and made a new 52-week high of 151.45. The 52 week low of the stock is Rs 49. 

Zomato: How were the Q3 results?
Online food delivery platform Zomato has performed better than Zee Business research estimate results in the December quarter. The company has made a consolidated profit of Rs 138 crore in the quarter under review against a loss of Rs 347 crore in the same quarter a year ago. The profit for the September quarter was Rs 36 crore. Zomato's revenue from operation in Q3 increased from Rs 1948 crore to Rs 3288 crore YoY.

The revenue for September quarter was Rs 2848 crore. The company suffered a loss of Rs 21 crore in the September quarter. EBITDA was Rs 51 crore, which was a loss of Rs 366 crore a year ago.

(Disclaimer: The advice for investing in shares here has been given by brokerage houses. These are not the views of Zee Business. Consult your advisor before investing.)