Zomato trades lower even as HSBC assigns buy rating: Check target price
Zomato share price: Earlier, another brokerage, Morgan Stanley, also maintained an overweight stance and placed the target of Rs 140 per share on the counter.
Zomato share price: Shares of Zomato, the only new-age tech company that is topping the space in terms of gains over the issue price, have run up splendidly on a year-to-date (YTD) basis. The stock's YTD return is at 97.22 per cent, while in one year, the stock has climbed 78.76 per cent.
Shares of the company in trade on Tuesday were trading with a marginal cut at Rs 117.1, down 0.17 per cent.
Global brokerage HSBC has maintained its buy on the food services aggregator and set a target of Rs 140. This is a significant upside of 20 per cent from the last closing price of Rs 117.4.
The brokerage expects a 15 per cent CAGR in the company's food delivery (FD) business over the next 4–5 years, while for the QC, or quick commerce, segment through the Blinkit platform, it sees a growth of 25–30 per cent in the same time frame. This is estimated for sustained expansion in margins. Nonetheless, the key downside risk seen for the stock in both the company's business segments is demand weakness.
Citi earlier, after the completion of the block deal at the counter, wherein foreign investor Alipay Singapore Holdings diluted its entire stake in Zomato, also gave its 'Buy' call on the counter with a target of Rs 145.
Earlier, another brokerage, Morgan Stanley, also maintained an 'overweight' stance and placed the target of Rs 140 per share on the counter.
Morgan Stanley maintained an 'overweight' stance with a target price of Rs 140. At the day's high, the stock touched levels of Rs 116, gaining 2.7 per cent over the previous close. The brokerage conducted an Alphawise survey on the start-up concerning its quick delivery business and highlighted that the company has strong growth potential with room to take further shares from alternate channels.
In the September quarter, FIIs increased their bet on the counter to 54.72 per cent from 54.43 per cent in the June quarter. Also, DIIs' stake in the counter has increased substantially to 13.04 per cent in the September quarter from 9.93 per cent in the previous quarter. At the counter, Axis Long Term Equity Fund has bought a fresh stake.
The consensus recommendation on the counter from 27 analysts as per Trendlyne data is a 'Buy', with 20 of them signalling a 'Strong Buy'. The Trendlyne platform sets a 1-year target at Rs 130.
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