Zomato Share Price may turn bullish tomorrow after Rs 267, keep an eye after 10 am tomorrow
Zomato share price experienced notable fluctuations, reflecting the dynamic nature of the stock market. The stock opened at ₹272.90 but faced a decline throughout the trading session, closing at ₹244.30, down by 6.23% from the previous close of ₹250.53. This decline follows a recent high of ₹286.50 reached just two days earlier on September 13, 2024, marking a significant drop from its peak.
Main Points
Zomato’s share price has been quite volatile over the past week. After reaching a 52-week high of ₹286.50, the stock quickly fell, hitting a low of ₹241.85 during today’s trading. The share price has seen a dramatic rise over the past year, with an increase of approximately 147.68% year-to-date. However, the recent downturn raises questions about its short-term performance.
As of today, Zomato’s market capitalization stands at ₹215,823.79 crore. The company’s price-to-earnings (P/E) ratio is notably high at 359.26, which is significantly above the sector average of 183.90. This suggests that investors are paying a premium for Zomato’s earnings, reflecting high expectations for future growth. The earnings per share (EPS) is reported at ₹1.70, indicating that while the company is growing, its profitability is still in the early stages.
Analysts remain cautiously optimistic about Zomato’s prospects. According to reports, the company’s growth is driven by its core food delivery business and its quick commerce arm, Blinkit. The food delivery segment is stable, while Blinkit is expected to turn EBITDA positive in the near future. This dual focus on growth areas has led analysts to maintain a positive outlook despite the recent price drop.
Several analysts have set a target price for Zomato shares ranging from ₹300 to ₹330, suggesting that there is still potential for growth. For instance, Motilal Oswal Financial Services has recommended accumulating the stock at current levels, particularly around ₹260-270, for long-term gains. They believe that a decisive breach above ₹295 could lead to further upside.
From a technical perspective, Zomato’s stock is currently facing resistance around the ₹290-295 mark. Analysts suggest that if the stock can maintain support in the ₹260-270 range, it may have the potential to bounce back. The recent formation of a “Black Spinning Top” candlestick pattern indicates indecision among investors, which could lead to increased volatility in the coming days.
Osho Krishan, a senior research analyst, noted that while the stock appears bullish, it is slightly overbought on daily charts. A daily close above ₹287 could lead to targets of ₹305-345 in the near term. Conversely, if the stock fails to hold above the ₹260 level, it may face further declines.
Investor sentiment towards Zomato remains mixed. While some investors are taking a wait-and-see approach, others are looking for buying opportunities. The recent dip in share price has made some investors wary, especially given the stock’s recent highs. However, the overall market sentiment is still positive, with many believing that Zomato’s growth story is far from over.
Looking ahead, Zomato’s share price action for tomorrow will likely depend on broader market trends and investor sentiment. If the stock can hold above the ₹260 support level, it may see a rebound. However, if it breaks below this level, further declines could be expected.
The upcoming trading session will be crucial for Zomato as investors will be watching closely to see if the stock can regain its footing after the recent downturn. With analysts maintaining a positive outlook, the potential for recovery remains, but it will require careful monitoring of market conditions and investor behavior.
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.
