Zomato Ltd. has been making headlines recently as its share price continues to fluctuate in the stock market. As of October 9, 2024, the share price stands at ₹284.05, reflecting a 1.81% increase from the previous closing price of ₹279.00. Investors and analysts are closely monitoring Zomato’s performance, especially given its remarkable growth trajectory and future expectations.
Zomato’s share price has shown significant movement over the past year. The stock reached an all-time high of ₹298.20 on September 24, 2024, and its 52-week low was recorded at ₹100.00 on October 3, 2023. This indicates a remarkable recovery and growth in value over the past year, with a staggering increase of approximately 184% from its low point.
Main Points
As of today, Zomato’s market capitalization is around ₹238,485 crore, with a trading volume of approximately 2.61 million shares. The company has been able to maintain a strong presence in the market despite fluctuations, indicating investor confidence in its business model and growth potential.
Price Performance
- Current Price: ₹284.05
- Previous Close: ₹279.00
- Day High/Low: ₹287.00 / ₹268.50
- 52-Week High: ₹298.20
- 52-Week Low: ₹100.00
- Market Cap: ₹238,485 crore
Several brokerages have expressed bullish sentiments regarding Zomato’s future performance. Analysts from firms like CLSA and Goldman Sachs have highlighted Zomato’s rapid growth compared to competitors like Swiggy, with Zomato capturing nearly 57% of the market share in food delivery services. The company’s adjusted revenue growth stands at an impressive 55.9% year-on-year, suggesting strong operational efficiency and customer retention strategies.
Morgan Stanley has retained an “overweight” rating on Zomato’s stock, projecting a target price of around ₹235 per share despite acknowledging increasing competition in the quick commerce sector. This indicates that while challenges exist, analysts believe Zomato is well-positioned to navigate them.
Looking ahead, analysts have set various target prices for Zomato shares:
- Conservative Target: ₹230 (Morgan Stanley)
- Moderate Target: ₹278 (based on current trends)
- Aggressive Target: Up to ₹300 depending on market conditions and operational performance.
Key Metrics
Investors should keep an eye on several key metrics that reflect Zomato’s financial health:
- P/E Ratio: Approximately 401.98, indicating high investor expectations for future earnings.
- Price to Book Ratio: Around 11.66, which suggests that the stock may be overvalued compared to its book value.
- Return on Assets (ROA): Currently at 5.93%, indicating how effectively Zomato is utilizing its assets to generate earnings.
