Zomato shares hit fresh record high, Rs 100 above listing price: 10 things to know
Zomato Shares at Record High: Food delivery company Zomatos stock scaled a lifetime high on July 11, completing a journey of Rs 100 within about three years since their market debut in July 2021. Should you buy, sell or hold Zomato shares now? Read on to know everything about Deepinder Goyals Zomato.
Zomato Shares at Record High: Gurugram-headquartered food delivery company Zomato's stock reached a new milestone on Thursday, July 11, reaching an unprecedented Rs 216 per share, more than Rs 100 above its listing price in July 2021. On BSE, Zomato shares strengthened by as much as Rs 5 - or 2.4 per cent - to Rs 216.2 apiece amid moderate volumes. At 11:20 am, the stock was holding on to nearly half of its intraday gain at Rs 213.4, still more than Rs 97 above the listing price of Rs 116 per share. Analysts attribute the recent spike in Zomato shares to its strong financials.
Zomato Stock Price News | Here are 10 things to know about Zomato shares at the current juncture:
- Zomato shares have already crossed a one-year target of Rs 214 apiece set last month with a 'buy' recommendation by SBI Securities.
- The brokerage listed five reasons behind its bullish stance on Zomato: A diversified business model, a strong brand, rising penetration, strong performance, and a valuation well supported by earning growth.
- According to SBI Securities, Zomato "enjoys robust brand recalls as it is a popular platform for sourcing of foods in urban areas. Over the years, the company has expanded its service offerings."
- Blinkit, a quick commerce company acquired by Zomato in 2022, caters to a wide variety of customer needs starting from grocery and household essentials among several categories of products, the brokerage highlighted.
- With a presence in more than 800 cities in the country, Zomato's food delivery unit contributes 63 per cent to its overall sales, according to the brokerage.
- Zomato staged a strong March-quarter performance, with its management revealing plans to double Blinkit's store count to around 1,000 by FY25.
- Key risks: The brokerage views any slowdown in consumption, high competition and higher interest rates (which may impact the real estate business) as key risks to its view on Zomato.
- Zomato shares entered the listed space at Rs 116 apiece in July 2022 - a premium of almost 53 per cent over the upper end of the price band of the company's IPO.
- Zomato is yet to announce the date it will release its financial results for the June quarter - the first three months of FY25.
- Zomato is an online food delivery platform that connects customers, restaurant partners and delivery partners.
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