Zomato, Paytm stocks gain as food delivery firm in talks to buy digital payments companys movies & ticketing unit
Zomato Paytm ticketing business news: Shares of Zomato and Paytm hogged the limelight on Tuesday, June 18, a day after food delivery services firm Zomato on Sunday said that it is in talks to acquire Paytms movies, and ticketing business.
Zomato share price, Paytm share price, Zomato Paytm ticketing business news: Shares of Zomato and Paytm hogged the limelight on Tuesday, June 18, a day after food delivery services firm Zomato on Sunday said that it is in talks to acquire Paytm’s movies, and ticketing business.
Zomato shares rose 1.3 per cent to the day's high of Rs 188.84 while Paytm shares gained 3.9 per cent to the day's high of Rs 442 on NSE in morning deals.
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,” added 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.
Zomato share price target: Here's what JPMorgan says
JPMorgan has maintained an overweight rating on Zomato with a target of Rs 208. "Zomato has been successful in some acquisitions, such as Uber Eats India, Runnr, and Blinkit," said JP Morgan in its note.
"Movies and Live events can be seen as an eventual adjacency to dining out," the brokerage added in its note. Zomato's right to win here does not appear obvious, it said.
JP Morgan said Paytm had a meaningful market share in the Movies and Events business as a clear #2.
As per the analysts at brokerage, its decision to exit the business appears in line with its recent intention to prune "non-core businesses" in Q4.
Zomato’s share price performance
Zomato stock has gained over 150 per cent in the last one year. 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.
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