February 13, 2025
Zomato hit 52-week excessive as HSBC raises goal worth to Rs 150

Prior to now one month, the inventory of this meals supply platform has surged over 15 p.c as in opposition to 2 p.c rise within the benchmark Sensex

Shares of Zomato gained over 2 p.c to hit 52-week excessive of Rs 137.5 after world brokerage agency HSBC shared a “purchase” score on the counter and raised the goal worth to Rs 150, an upside of 9 p.c from present ranges.

Prior to now one month, the inventory of the food-delivery platform has surged over 15 p.c in opposition to a 2 p.c rise within the benchmark Sensex.

Story continues under Commercial

Observe stay weblog for all of the market motion

Analysts at HSBC stated Zomato’s long-term view stays constructive regardless of a possible muted progress within the calendar yr 2024.

“Since Zomato is extremely depending on continued development of fast commerce enterprise, any slowdown in fast commerce progress can be a key draw back danger,” they stated.

Analysts at Elara Securities additionally shared a “purchase” name and a goal worth of Rs 150, saying the corporate’s increased comfort charges, promoting revenue and fee from eating places have been key levers to enhance profitability of the food- supply enterprise.

ALSO READ: Zomato introduces ‘Day by day Payouts’ function for eating places dealing with lower than 100 month-to-month orders

“We anticipate one other 10-20 foundation level (bp) enlargement every within the take fee of FY25E and FY26E attributable to incremental comfort charge of Re 1 in choose markets,” the brokerage agency stated.

Story continues under Commercial

The gradual improve in comfort charge was unlikely to considerably impression shoppers, because the cost was round 0.9 p.c of the typical order worth (AOV).

Zomato has raised its platform charge for meals supply providers by 33 p.c, mountaineering it from Rs 3 to Rs 4 a order in key markets efficient January 1.

It began levying a comfort charge of Rs 2 per order in August 2023, which was raised to Rs 3 by month-end. The comfort charge has been one of many drivers of progress of 60 bp quarter-on-quarter and 220 bp year-on-year within the take fee (19.4 p.c, excluding supply prices) in Q2FY24.

At 10.45 am, the inventory was buying and selling at Rs 137.30 on the BSE, up 1.97 p.c from the earlier shut.

Disclaimer: The views and funding suggestions expressed by funding consultants on Moneycontrol.com are their very own and never these of the web site or its administration. Moneycontrol.com advises customers to verify with licensed consultants earlier than taking any funding choices.