Zomato‘s share price was in the green on Friday morning going up over 2% to hit a new all-time high of ₹191.25.
What Happened: The surge today comes as Kotak Securities maintained its “buy” rating for the stock raising the price target to ₹210 from ₹190. The domestic brokerage firm expects Zomato to deliver strong performance in the quarter ending March, supported by a 25% year-on-year growth in food delivery Gross Merchandise Value (GMV) and a remarkable 99% year-on-year growth in Blinkit GMV.
See Also: How To Check Creative Graphics IPO Allotment Status
The brokerage firm anticipates both segments to exhibit sequential improvement in Contribution Margin (CM), driven by enhanced take rate and advertising income. Kotak’s projections include a revenue Compound Annual Growth Rate (CAGR) of 49% over the period spanning FY24-27.
In light of the faster growth observed in Blinkit, the analysts have upgraded its revenue estimates for FY25-26 by 4-6% and earnings per share (EPS) by 1-3%. Furthermore, the company has raised its revenue estimates for FY25-26 Blinkit by 6-13%.
Last month, Domestic brokerage firm ICICI Securities maintained its "buy" rating for the stock with a target price of ₹300.
Price Action: Zomato’s share price was up 1.60% to trade at ₹190 shortly after market open on Friday.
Read Next: HDFC Bank Shares Extend Gains To 7th Day, Brokerages See Further Upside
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.