Zomato Shares Extend Gains To 6th Day As Brokerage Raises Price Target

Zomato’s share price continued to make gains for the sixth straight session going up over around 1%.

What Happened: The food-tech giant has been on a golden run since the last year. In the past year, the stock has surged up over 260%. The stock is upbeat today as JM Financial maintained its “buy” rating for the stock raising the target price to ₹260 from ₹200.

JM Financial’s analysis of Zomato, particularly its Blinkit arm, underscores the exponential growth trajectory of this segment. Blinkit’s sustained expansion shows no indications of deceleration, the analysts said. JM Financial anticipates that Quick Commerce will surpass the Gross Order Value (GOV) of the food delivery business sooner than initially anticipated.

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Zomato is anticipated to benefit from the Indian Premier League (IPL), which could be contributing to the optimistic outlook. In just the last 30 days, the stock has gone up over 28%.

The stock has also been receiving encouraging upgrades from other domestic brokerages. In the past few weeks, two domestic brokerage firm ICICI Securities and Kotak Securities have raised their respective targets on the stock while maintaining their “buy” ratings.

Zomato is now valued at around ₹1.71 lakh crore. At this valuation, the food delivery giant is worth more than Tata Consumer, Hindalco, Eicher Motors, Tech Mahindra and a bunch of other Nifty 50 stocks.

Price Action: Zomato’s share price was up 1.02% to trade at ₹198.90 as the markets opened on Friday.

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