Is Zomato Share a Buy at 280? Analysts Predict Potential 33% Upside
On Friday, August 30, 2024, Zomato’s share price reached new highs, closing at ₹260.03, up 1.18% from the previous day’s close of ₹263.12. The food delivery giant’s stock has been on a remarkable run, surging over 88% in the past three years compared to a 54.92% return for the Nifty 100 index.
Main Points
Zomato share price has been a hot topic among investors, with the stock hitting a 52-week high of ₹280.90 on August 19, 2024. The company’s market capitalization currently stands at a staggering ₹2,29,528 crore, making it the top-ranked company in the Services sector.
Next Day Price Forecast and Technical Analysis
Technical indicators suggest that Zomato’s stock has the potential for further gains. The daily MACD (Moving Average Convergence Divergence) crossover appeared on August 28, 2024, and in the past 10 years, this signal has been followed by an average price decline of just 5.73% within 10 days.
Fundamental Analysis and Today Target Prediction
Zomato’s strong financial performance has been a key driver of its share price growth. In the first quarter of fiscal year 2025, the company reported a staggering 12,550% jump in profit compared to the same period last year, with net profit soaring from ₹2 crore to ₹253 crore. This impressive growth has led analysts to revise their target prices for Zomato, with some now predicting the stock could reach ₹350, implying an upside potential of up to 33%.
Buyback News and Important Levels
While there has been no recent buyback news from Zomato, the company’s strong fundamentals and growth prospects have caught the attention of investors. The stock has consistently traded above its 200-day moving average, indicating a bullish trend. Key support levels for Zomato’s share price are ₹240 and ₹220, while resistance is expected at ₹280 and ₹300.
Movement Causes and 52 Week High Low
Zomato’s share price movement has been driven by a combination of factors, including its acquisition of Paytm’s movie ticketing and events business for ₹2,048 crore, strong growth in its quick commerce segment, and the planned IPO of its competitor Swiggy. The company’s 52-week low stands at ₹88.30, reached on August 25, 2023.
