Zomato hits 52-week high after reporting profit for the first time since listing; Jefferies sees 30% upside

Zomato share price NSE, Zomato Q1 results: Zomato share price NSE, Zomato Q1 results: Shares of Zomato skyrocketed on Friday, a day after the online food delivery firm reported its first-ever consolidated profit after tax (PAT) of Rs 2 crore for the April-June quarter of 2023–24 (Q1FY24). The firm managed to deliver a profit one quarter before its own guidance, owing to a tax gain and strong orders in its food and grocery delivery businesses. The scrip jumped as much as 13.6 per cent to hit a 52-week high of Rs 98.40 on the NSE. The counter settled at Rs 95.35, up by Rs 8.8 or 10.17 per cent on the NSE.

Zomato reported a net loss of Rs 186 crore in the same quarter last fiscal. The company's consolidated revenue from operations in the first quarter of the current fiscal came in at Rs 2,416 crore as against Rs 1,414 crore logged in the year-ago period, it added. Total expenses were higher at Rs 2,612 crore as compared to Rs 1,768 crore in the same quarter a year ago. Read more

Besides, block deals worth Rs 1.74 crore took place in the early morning, as per a Zee Business report.

Zomato share price target 2023: Here's what top brokerages say

Brokerage Jefferies sees an upside of 30 per cent on Zomato. It has maintained a buy call and has raised the target on Zomato to Rs 130 from Rs 100 earlier. The brokerage, in its report, said that Zomato achieved a key milestone of positive adjusted EBITA and consolidated PAT way earlier than guidance. This puts to rest all concerns around the company's ability to make respectable profits, it added.

After Zomato's quarterly earnings announcement, other brokerages too have revised their target prices on the counter.

• JP Morgan has maintained an overweight rating and has raised the target to Rs 100 from Rs 90.
• Morgan Stanley has maintained an overweight rating with a target price of Rs 85.
• CLSA has maintained a buy call and has raised the target to Rs 105 from Rs 80.
• Citi has maintained a buy call and has raised the target to Rs 115 from Rs 84.
• HSBC has maintained a buy call and has raised the target to Rs 102 from Rs 93.
• However, Nomura has maintained a 'reduce' rating but has raised the target to Rs 60 from Rs 45.
• Macquarie has maintained an underperform rating with a target price of Rs 55.

Zomato share price history

Zomato's stock has given a positive return of over 65 per cent in the last 12 months (from August 4, 2022). In comparison, the headline index Nifty 50 has rallied nearly 12 per cent.

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