UBS sees 18% potential upside in Zomato; stock hits new all-time high

Shares of food delivery services major Zomato scaled a new all-time high of Rs 284.35 per share on the BSE. The 5 per cent spurt in the stock was triggered after global brokerage UBS continued with its buy rating with a target of Rs 320.

At the last count, shares of the new-age company traded higher by 3.64 per cent at Rs 281.6 apiece on the BSE.

The global brokerage UBS mentioned that industry volume logged 2.5 per cent growth month-on-month, adjusted for number of days. Also, Zomato and Swiggy competition continued into the second quarter of the ongoing fiscal year, which the brokerage defined as 'push and pull' dynamics of Zomato and Swiggy.

For the quarter ending September, the brokerage has pegged the company's gross merchandise value (GMV) growth at 7 per cent quarter-on-quarter (QoQ).

Zomato's share price performance 

Zomato shares on a year-to-date basis have climbed 128 per cent. Furthermore, the stock over the last 6 days has been climbing and gained over 17 per cent during this time.