Zomato shares increased 3 times in a year, brokerage advice – buy

New Delhi. Shares of food delivery company Zomato have seen a rise of more than 3 percent today i.e. Thursday. Only last week the company had released the results for the December quarter of the financial year 2024. After the results, many brokerage firms advised investors to invest money in Zomato shares. Zomato shares have surged 212 percent in the last one year and have tripled investors’ money in just 12 months.

Last week, after the release of third quarter results, HSBC, Jefferies and Bernstein had increased the target price on Zomato stock. Brokerage firms estimated that Zomato’s Quick Commerce would continue to do better in terms of growth and profits. Now brokerage firm CLSA has now given a buy opinion on Zomato and has predicted that Zomato share can touch the level of ₹ 227. According to the closing price of Wednesday (14 February 2024), this target price is about 46 percent higher.

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CLSA is affected by profits
Brokerage says that Zomato shares have strengthened by more than 200 percent in the last one year. Whereas, during this period, Sensex has seen a rise of 17 percent. The third quarter results indicate a path towards stability in profits. The analyst also said that even if there is no significant growth in food delivery, there will be no significant impact on the company’s performance.

These brokerages also advised to buy
Apart from CNSA, brokerage firm Morgan Stanley has also given overweight rating to Zomato share and has set its target price at Rs 150. HSBC has also given buy rating to this stock and set its target price at Rs 163. Jefferies has given a target price of Rs 205 with a buy advice.

Profit was Rs 138 crore
Zomato’s profit in the December quarter of business year 2024 was ₹ 138 crore. Whereas, in the same quarter of the last financial year, the company had suffered a loss of ₹ 347 crore. The company’s contribution margin increased from 6.6% to 7.1%. The gross order value (total value of all orders) of the company’s grocery business doubled. There has been a growth of 27 percent in food delivery business on annual basis.

(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you want to invest money in any of these, then first consult a certified investment advisor. AyraNews24x7 is not responsible for any profit or loss of yours. will be.)

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