Zomato Limited: Zomato Limited among the leaders of food ordering applications in India, was buzzing across the stock exchange recently. At present, it was trading at a share value of ₹280.65 and showed a solid gain of 151.43% for the last calendar year. With this exciting run up, Zomato witnessed notable achievements, most of which recently featured its entrance into BSE Sensex, dated from December 23 by replacing JSW Steel in it.
Zomato Limited Share Price Today
- According to a fundamental study, the company’s ROE and ROA are 1.76% and 1.56%, respectively. The Zomato Limited stocks current P/E and P/B are 341.38 and 11.69, respectively.
- With a target price of ₹305.00, the median one-year expected upside for this share is 8.10%.
- According to the company’s September quarter reports, its promoter holdings are 0.00%, MF holdings are 13.57%, and FII holdings are 47.28%.
- While its peers are neutral, Zomato Limited share price is down -1.38% today, trading at ₹282.15. While its competitors are declining today – Wipro, Info Edge India, Firstsource Solutions, and Eclerx Services are increasing. The major indices, the Nifty and the Sensex, have increased by 0.87% and 0.97%, respectively.
What drives Zomato?
- Revenue Growth: Zomato Limited posted 71% revenue growth at ₹12,114 crore in FY 2023-2024. Profit remains a challenge as PAT saw a 136% drop to ₹351 crore, an area to work on.
- Strategic Moves: Zomato Limited has successfully completed its Qualified Institutional Placement (QIP) for ₹8,500 crore at ₹252.62 per share, furthering its financial strength to support its expansion and innovation efforts.
- Future Plan: The company sees a potential growth of 30% annually over the next five years in its food delivery business, powered by scheduled deliveries and other newly introduced features such as discounts on canceled orders.
Key Updates
Zomato’s entry into the F&O trading segment from November 29 has increased its attraction. Brokerages expect the stock to give an upside of 15-24% and have tagged it as a hot pick among traders.
Should You Invest?
For long-term investors, Zomato provides access to India’s developing digital economy. Its innovative strategies, increased user base, and attractive industry outlook make the investment a great addition to many portfolios. However, with an extremely high valuation, this investment should be cautiously put into the portfolio by analyzing the company’s potential effort to improve profitability in P/E ratio at 706.57.
Conclusion
Zomato is riding the wave of India’s digital and consumption-driven economy. With strong growth prospects and recent market achievements, the company remains a stock to watch. As always, consult your financial advisor to evaluate its fit within your investment goals.
So, stay connected with us to know more about market trends and updates! Happy Investing!
(Disclaimer: Demat Dive is not giving any buying advice on any stock. Consult a SEBI registered advisor before investing anywhere.)
Authored by – Deepa Trivedi
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