Zomato up after global brokerages stay positive on stock, 46% upside seen


Global brokerages remain positive on Zomato’s stock price, which could be attributed to the company’s ability to innovate and expand its offerings. The stock price edged higher by 2 percent in the morning session on February 24.

Zomato has launched a new service through which it aims to sell quick and cheap home-style meals to students and office-goers.

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While the new service launched on February 22, named ‘Everyday’, is currently being piloted in Gurugram, the company plans to launch it soon in other cities. The Zomato app claims that food ordered through the service will be delivered in 10-15 minutes.

According to a person close to the development, the infrastructure for this service has been built on the 10-minute food delivery service that Zomato piloted last year and paused recently because of low demand.


Overall, Zomato’s new service could be a game-changer for the food delivery industry in India, and it will be interesting to see how it performs in the coming months.

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Morgan Stanley and Citi have positive views on Zomato’s stock and believe that the company’s new initiative of offering affordable home-style meals could increase its Total Addressable Market (TAM) profit pool.

Morgan Stanley’s overweight rating and target price of Rs 82 per share, indicating an upside of over 46 percent from the current market price, suggest that the firm is optimistic about Zomato’s growth prospects.

Citi’s buy rating and target price of Rs 76 per share also highlight the potential for growth in Zomato’s loyalty program, which could be a key driver of revenue in the medium term. However, Citi also notes that the loyalty program may have a slight negative impact on contribution margin in the short term.

According to Shrikant Chouhan, Executive Vice President at Kotak Securities, after a promising reversal formation, the stock is holding a higher bottom formation which is largely positive. Currently, the stock is trading near the 50-day SMA (simple moving average Rs 54.20), and the texture of the chart indicates a further uptrend from the current levels.

“For positional traders, Rs 52.5 would be the sacrosanct level, trading above the same we can expect an uptrend continuation wave up to Rs 58-60,” he added.

At 10:54 hrs Zomato was quoting at Rs 55.60, up Rs 0.65, or 1.18 percent on BSE. It has touched an intraday high of Rs 56.70 and an intraday low of Rs 55.40.

With agency inputs

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.​​​​​



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