Zomato Share Price 3x in 2023 : Outlook for 2024

Zomato shares have surged nearly threefold from their lowest point in the past year in 2023. The stock, which dropped to a yearly low of Rs 44.35 on January 25, 2023, reached a peak of Rs 131 in the current session, resulting in a remarkable 195% increase during this period. The stock came close to its highest point in the past 52 weeks, touching Rs 131.75 on December 19, 2023.

Zomato shares closed 0.35% higher at Rs 128 on the BSE today, opening higher at Rs 130.30. Over the course of a year, Zomato’s stock has risen by 116.28%, with a 111.62% increase in 2023.

A total of 51.86 lakh shares of Zomato were traded on the BSE, amounting to a turnover of Rs 66.65 crore. The market capitalization of the company rose to Rs 1.11 lakh crore on Friday.

From a technical standpoint, the relative strength index (RSI) of Zomato’s stock is at 61, indicating that it is neither overbought nor oversold. Zomato shares are trading above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

International brokerage CLSA has set a target price of Rs 168 for Zomato’s stock and considers it a top pick in the consumer space. CLSA believes that with competitive pricing and the convenience of 10-20 minute delivery, quick commerce can be successful across cities in India, extending beyond metros and tier-1 cities.

“With Blinkit achieving a positive contribution in Q2FY24, we believe added scale as they expand their dark store network and city reach will drive positive adjusted Ebitda in FY25,” stated the foreign brokerage.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, noted, “The stock has witnessed a decent rally in the last 7-8 months, recovering from Rs 49 levels. With a series of higher lows formation visible on the daily chart, the stock has been in a strong uptrend.”

Abhijeet from Tips2trades mentioned, “Zomato is slightly bearish on the Daily charts with the next resistance at 134. A daily close below the support of 120 could lead to 105 in the near term.”

Zomato reported a net profit of Rs 36 crore in the September quarter, compared to a net loss of Rs 251 crore during the same quarter last year. Revenue in Q2 increased by 72% year-on-year to Rs 2,848 crore from Rs 1,661 crore in the September 2022 quarter. On a sequential basis, the company’s revenue rose by 18%, while the operating loss remained nearly the same. In the June quarter, Zomato had reported a net profit of Rs 2 crore.