Zomato Ltd. has been making headlines in the stock market with its recent share price movements. The current trading environment reflects a mix of volatility and investor sentiment, which is crucial for stakeholders keeping an eye on this prominent player in the food delivery sector.
Main Points
Zomato’s share price is currently trading at ₹242.90, reflecting a decline of approximately 1.96% from the previous close of ₹247.70. The stock has experienced fluctuations throughout the day, with a low of ₹240.5 and a high of ₹245. Over the past month, Zomato’s shares have seen a decrease of 5.23%, while the three-month performance shows a robust increase of 41.14%.
Key Metrics
- Current Price: ₹242.90
- Day’s Low: ₹240.50
- Day’s High: ₹245.00
- Market Capitalization: ₹215,912.13 Cr
- P/E Ratio: 615.15
- 52-Week Range: Low of ₹96.47 and High of ₹280.
From a technical perspective, Zomato’s stock is navigating through critical support and resistance levels. The daily pivot point is set at ₹243.13, with resistance levels at R1: ₹245.77, R2: ₹247.63, and R3: ₹250.27. On the support side, levels are marked as S1: ₹241.27, S2: ₹238.63, and S3: ₹236.77.
Moving Averages
- 5-Day Simple Moving Average (SMA): ₹256.65
- 10-Day SMA: ₹259.08
- 50-Day Exponential Moving Average (EMA): ₹250.70.
Market Sentiment and Analyst Ratings
Analysts have mixed sentiments regarding Zomato’s future performance. Some analysts maintain a positive outlook, suggesting that the stock may rebound as it is currently above its key moving averages, indicating potential for recovery in the near term. However, concerns linger regarding its earnings performance, as the company has posted a P/E ratio significantly higher than its industry peers.
Recent Analyst Recommendations
Recent recommendations from various analysts include:
- A buy rating from Motilal Oswal with a target price set at ₹300.
- Bernstein has raised its target price to ₹330 from ₹275, indicating an upside potential of over 16% from current levels.
Financial Performance Overview
Zomato has shown impressive revenue growth over recent quarters, with an annual revenue growth rate of approximately 67%. However, profitability metrics remain a concern with a pre-tax margin of only 2% and a return on equity (ROE) hovering around 1%.
Comparison with Competitors
In comparison to its competitors within the e-commerce sector, Zomato has demonstrated strong growth metrics over the last year:
- 1-Year Return: +147%
- 3-Year Return: +68%
- 5-Year Return: +93%.
Despite these numbers, Zomato’s stock has faced challenges in maintaining consistent upward momentum due to broader market conditions and competitive pressures.
Looking ahead, Zomato aims to expand its operations significantly, which could bolster its market position and potentially drive share prices higher in the long run. Analysts suggest that continued investment in technology and service enhancements will be crucial for sustaining growth.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
