Zomato’s stock price gained over 3% after brokerage UBS raised its target price on the stock after the company's strong performance in Q1.
Brokerage Views: UBS maintained a "buy" call while raising its target to ₹320 for Zomato, a 19% upside from the previous day's close.
According to the brokerage firm, Q1 was a positive surprise for the food delivery platform with stronger quick-commerce gross merchandise value (GMV) growth and 27% growth in food delivery, both of which also came ahead of estimates.
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Margin expansion in both quick commerce and food delivery came above estimates, the research firm said. UBS also pointed out that management giving positive guidance revision is another positive.
The brokerage hiked its GMV estimates for quick commerce for Q1 FY26-28 by 20-30% and for food delivery by 2-3%. It also added that Zomato has a superior growth and margin expansion profile.
In early August, Zomato reported a massive jump in net profit to ₹253 crore from ₹2 crore in the previous year in its June quarter. The company’s revenue also jumped 74% to ₹4,206 crore. Blinkit, the quick commerce arm’s revenue gained to ₹942 crore from ₹769 crore in the previous quarter.
Price Action: Shares of Zomato rose 3.27% to ₹273.09 on Monday morning.
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