Zomato Shares Soar 129% from 52-Week Low, Brokerages Bullish on 2025 Outlook
31st Dec 2024
Zomato's Impressive Stock Performance
Shares of Zomato Ltd have more than doubled investor wealth in 2024, surging 125% this year. The stock has risen 129% from its 52-week low of Rs 121.70 reached on January 18, 2024. However, Zomato stock has lost 7% in the last two weeks and is down 8.70% from its record high of Rs 304.50 reached on December 5, 2024.
Brokerages Remain Bullish on Zomato
Brokerages are mostly bullish on the outlook of the stock. Brokerage Bernstein has an outperform stance on Zomato, assigning a target price of Rs 335. Bernstein cited Zomato's wider city presence compared to Swiggy and higher gross order value per restaurant. Global brokerage CLSA also has an outperform rating on the stock with a price target of Rs 370 per share. Morgan Stanley has an 'overweight' stance on Zomato stock with a revised price target of Rs 355, up from an earlier value of Rs 288 per share. Motilal Oswal has a target price of Rs 330 on the stock.
Comparing Zomato and Swiggy's Performance
CLSA compared Swiggy's earnings with Zomato's results, noting that Swiggy's Q2 overall B2C gross order value (GOV) grew 30% year-on-year, compared to a 23% rise in Q1 FY25. In the quick commerce segment, Swiggy's GOV grew 76% YoY, trailing Zomato's Blinkit, which reported a 122% increase. In food delivery, Swiggy's GOV rose 15% YoY, while Zomato outpaced it with a 21% increase. Both platforms saw similar sequential improvements, with Swiggy at 6% and Zomato at 5%.
Meanwhile, Zomato shares were down 1.64% at Rs 278 in the current session against the previous close of Rs 282.90. The stock is bullish in the short as well as long term, trading above its 5-day, 50-day, 100-day, 150-day and 200-day moving averages.
Shares of Zomato Ltd have more than doubled investor wealth in 2024, surging 125% this year. The stock has risen 129% from its 52-week low of Rs 121.70 reached on January 18, 2024. However, Zomato stock has lost 7% in the last two weeks and is down 8.70% from its record high of Rs 304.50 reached on December 5, 2024.
Brokerages Remain Bullish on Zomato
Brokerages are mostly bullish on the outlook of the stock. Brokerage Bernstein has an outperform stance on Zomato, assigning a target price of Rs 335. Bernstein cited Zomato's wider city presence compared to Swiggy and higher gross order value per restaurant. Global brokerage CLSA also has an outperform rating on the stock with a price target of Rs 370 per share. Morgan Stanley has an 'overweight' stance on Zomato stock with a revised price target of Rs 355, up from an earlier value of Rs 288 per share. Motilal Oswal has a target price of Rs 330 on the stock.
Comparing Zomato and Swiggy's Performance
CLSA compared Swiggy's earnings with Zomato's results, noting that Swiggy's Q2 overall B2C gross order value (GOV) grew 30% year-on-year, compared to a 23% rise in Q1 FY25. In the quick commerce segment, Swiggy's GOV grew 76% YoY, trailing Zomato's Blinkit, which reported a 122% increase. In food delivery, Swiggy's GOV rose 15% YoY, while Zomato outpaced it with a 21% increase. Both platforms saw similar sequential improvements, with Swiggy at 6% and Zomato at 5%.
Meanwhile, Zomato shares were down 1.64% at Rs 278 in the current session against the previous close of Rs 282.90. The stock is bullish in the short as well as long term, trading above its 5-day, 50-day, 100-day, 150-day and 200-day moving averages.