Shares of food delivery company Zomato are witnessing tremendous growth in their trading beginning on Friday (April 12). With the opening of the market, the company’s shares rose by 1.49 percent and touched the price of Rs 199.75 on BSE. This is the highest level of the company’s share price so far. The rise in Zomato shares has come after JM Financial increased the share price target. Domestic brokerage firm has predicted a rise of 32 percent in Zomato.
Gave a target of 260
Zomato shares have been given a buy rating by JM Financial. The company has given a target of Rs 260 per share for this, which was earlier Rs 200. The brokerage firm says that the business of quick commerce firm Blinkit is growing rapidly and this may continue in future also. Zomato’s price target for the next three years is Rs 400 per share. Blinkit is a subsidiary of Zomato.
The brokerage firm further said that Zomato will remain its preferred pick in future also. The company will directly benefit from the coming change in hyper local. The company’s balance sheet is very strong and by December 2023, the company has net cash available of about Rs 12,000 crore. The brokerage firm believes that in the near term Blinkit will increase its investment in expansion of dark-store network, adding retail category as well as deeper penetration of the product. The company will reach break even in the first quarter of this financial year.
Share increased by 268 percent in one year
Zomato shares have given a return of 268 percent in the last one year. The stock has given a return of 78 percent in the last six months. At the same time, in the last one year the stock has given a return of 24 percent to the investors. The market cap of the company has reached Rs 1.70 lakh crore.
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