From food delivery to delivering ration to your home in 10 minutes, Zomato, a company, has already earned huge profits for its shareholders. Now, after the company’s better quarterly results a few days ago, Zomato’s shares are once again the ‘talk of the town’. Is this again going to bring bumper earnings to the investors? Let us understand.
Zomato has made a consolidated net profit of Rs 176 crore in the second quarter of the current financial year. It was only Rs 36 crore in the same quarter a year ago. After this, brokerage firms are bullish on Zomato. The reason behind this is the company’s desire to maintain growth in its business. Many brokerage firms have given a new high level target of Zomato share price at Rs 370.
going to raise 8500 crores
Zomato’s board has approved raising another Rs 8,500 crore through QIP in the coming days. At the same time, the company has increased the platform fee during the festive season, it has been increased to Rs 10. This is also expected to increase the company’s profits. After good quarterly results, Zomato’s shares saw a rise of three percent on Wednesday. On Friday, Zomato shares closed with a slight fall at around Rs 252.
36 percent return in 6 months
As far as returns on Zomato’s shares are concerned, it has given a return of 36 percent i.e. Rs 67 to the investors in the last 6 months. Whereas till now in the year 2024, 100 percent return has been received. That means, if you had invested in Zomato on January 1, your money would have doubled in 10 months. The 52 week high of Zomato stock is Rs 298.25.
Keeping this in view, domestic brokerage firm Motilal Oswal has given a target price of Rs 330 while maintaining the buy rating on Zomato. The firm said in its report that the food delivery business is stable. Whereas industries like Blinkit retail, grocery and e-commerce are progressing. While maintaining ‘buy’ advice on Zomato, brokerage firms HSBC and UBS have given target prices of Rs 330 and Rs 320 respectively.
