Zomato, one of India’s leading food delivery platforms, has seen its stock price climb to a record ₹299.25 per share in November 2024. This surge highlights its strong market presence and growth potential.
Key Highlights
- Stock Price: Opened at ₹288.10, surged 4.52% intraday, and closed at ₹299.25.
- Market Cap: ₹2.85 lakh crore.
- Trading Volume: Over 34.25 lakh shares exchanged on BSE, amounting to a turnover of ₹101.25 crore.
Factors Driving Zomato’s Growth
1. Strong Market Presence:
- Wider Reach: Zomato operates in more cities compared to Swiggy, giving it a competitive edge.
- Gross Order Value (GOV): Zomato’s GOV per restaurant surpasses Swiggy’s, reflecting higher customer engagement.
2. Brokerage Ratings:
- Bernstein: Assigned an outperform rating with a target price of ₹335, predicting a 20% upside.
- CLSA: Revised target price to ₹370, citing strong growth levers in food delivery and quick commerce.
3. Competitive Edge:
- Zomato’s Blinkit outpaced Swiggy’s quick commerce GOV growth, achieving a 122% YoY increase compared to Swiggy’s 76%.
Technical Analysis
| Indicator | Performance |
|---|---|
| 5-Day Moving Average | Above ₹284 |
| 50-Day Moving Average | Strong upward trend |
| 200-Day Moving Average | Long-term bullish sentiment |
Expert Insights
- Morgan Stanley: Predicts a price target of ₹355, emphasizing Zomato’s ability to maintain a 40% market share amidst rising competition.
- Jigar S. Patel (Anand Rathi): Advises caution near ₹284-298 due to resistance zones, recommending profit booking for short-term traders.
Future Predictions
| Year | Stock Price Projection (₹) |
|---|---|
| 2025 | 320-350 |
| 2030 | 400+ |
Investment Strategies
Short-Term:
- Consider profit booking near resistance levels.
- Monitor quarterly earnings for updates on GOV and market share.
Long-Term:
- Invest in Zomato for exposure to India’s growing food delivery market.
- Diversify with related sectors like quick commerce for balanced risk.
Conclusion
Zomato’s record-high share price reflects its dominance in the food delivery market and robust growth prospects. With strong fundamentals and bullish analyst ratings, the stock remains an attractive choice for both short-term and long-term investors.
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Disclaimer:
“Investments in equities are subject to market risks. Please consult a financial advisor before making investment decisions.”