Zomato’s stock has been a focal point for investors and analysts alike, especially on October 22, 2024, when it showed significant movements in the market. This article delves into the current updates regarding Zomato shares, expected target prices, key levels, reasons for bullish and bearish sentiments, important news, market outlook, and insights from investors.
Main Points
As of October 22, 2024, Zomato’s share price is approximately ₹256.35, reflecting a decrease of 3.52% from the previous closing price of ₹257.45. The stock reached a 52-week high of ₹298.25 on September 23, 2024, while its 52-week low was recorded at ₹101.00 on October 9, 2023.
| Metric | Value |
|---|---|
| Current Price | ₹256.35 |
| Previous Close | ₹257.45 |
| 52-Week High | ₹298.25 |
| 52-Week Low | ₹101.00 |
| Market Capitalization | ₹246,214 Cr |
| P/E Ratio | 409.85 |
Analysts have varied opinions on Zomato’s future price movements:
- Motilal Oswal has set a target price of ₹320, predicting continued growth due to strong fundamentals.
- CLSA maintains an “Outperform” rating with a target of ₹283.90, citing Zomato as a leading player in the food delivery sector.
Investors should keep an eye on the following important levels:
- Support Level: Around ₹250
- Resistance Level: Approximately ₹280 to ₹300
These levels are critical for traders looking to make informed decisions based on market behavior.
- Strong Revenue Growth: Zomato reported a net profit of ₹253 crore for the April-June quarter, primarily driven by revenue from its subsidiaries Blinkit and Hyperpure.
- Market Positioning: With its significant market share in food delivery and a growing presence in grocery delivery, Zomato is well-positioned to capitalize on the increasing demand for online services.
- Positive Analyst Recommendations: A majority of analysts recommend buying Zomato shares, indicating strong confidence in its future performance.
- Recent Price Decline: The stock has seen fluctuations recently, with a drop of over 5% following announcements about fundraising plans through equity shares.
- High Valuation Metrics: The company’s P/E ratio stands at an elevated level compared to industry peers, which may deter some investors concerned about overvaluation.
- Market Sentiment: Broader market volatility and profit booking can lead to short-term declines in stock prices.
Several recent developments have impacted Zomato’s stock:
- On October 15, Zomato announced plans to raise funds through issuing equity shares, which led to a significant drop in share prices by 5.4%.
- The company is scheduled to hold an earnings conference call on October 22 to discuss its quarterly results and fundraising efforts.
- There has been a change in the board with the resignation of Ms. Gunjan Tilak Raj Soni as an independent director effective from October 11.
Market Outlook
The overall market sentiment appears cautious but optimistic due to several factors:
- Analysts predict a potential short-term pullback before further upside in the market indices like Nifty and Sensex.
- Investors are advised to remain cautious with small and mid-cap stocks while focusing on large-cap companies like Zomato that show strong fundamentals.
Investors’ Statements
Investors have expressed mixed feelings regarding Zomato:
- Some believe that despite recent declines, the long-term growth potential remains strong due to robust business models and strategic expansions.
- Others are wary of high valuations and recent price volatility but see potential for recovery in the coming months.
Zomato’s stock is currently experiencing fluctuations amid broader market trends and company-specific developments. Investors should monitor key levels and analyst recommendations while being aware of both bullish and bearish factors affecting their decisions.
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.
