Zomato shares in focus as UBS maintains 'buy'; check target price
Zomato share price NSE, BSE: The global brokerage has maintained its buy call on the food services major with a target of Rs 195, implying a potential upside of 22 per cent.
Zomato share price NSE, BSE: Zomato shares, which have seen an almost unabated rise in the past 12 months, continue to get "buy" calls from leading brokerages as they see more steam left in the multi-bagger stock. The latest on the list is UBS.
The global brokerage has maintained its buy call on the food services major with a target of Rs 195, implying a potential upside of 22 per cent.
In trade on Monday, March 18, 2024, shares of the company traded a tad higher after swinging to losses.
UBS is of the view that the industry volume is up 4 per cent month-on-month in line with seasonality; nevertheless, a sequential decline in gross merchandise value (GMV) may be possible. Besides, UBS sees some downside to consensus estimates (+1% QoQ) and expects year-on-year growth to remain healthy and within management's guidance of 20%+ YoY.
Over the last two trading sessions, the stock has climbed nearly 5 per cent to last settle at Rs 160.05 per share.
The spurt was likely triggered after the company's quick-commerce business, Blinkit's rival player, Zepto, levied a platform fee, while Blinkit so far has not charged any platform fee. Further, its handling fee is lower.
On Zomato, Zee Business Managing Editor says that the company is now profitable and over a period its profit is expected to soar to Rs 1000 crore. Further, the company's quick commerce business- Blinkit's EBITDA is slated to turn positive soon. Also, he added that over the next 10 years, the company's Blinkit business will turn out to be more value-accretive.
In addition, in Q1FY25, the adjusted EBITDA of the company's quick-commerce enterprise is seen to break even.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
HDFC Bank's new credit card offers customers to decide their billing cycle, reward points and cashback; know more about it
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
10:27 AM IST