Zomato’s stock saw a notable rise of 4.21% today, trading at ₹283.20 on the National Stock Exchange (NSE) at 11:28 AM, following UBS’s reaffirmation of its “Buy” rating with a target price of ₹320. The stock opened at ₹276.30 and reached a high of ₹283.60, with a low of ₹274.30 earlier in the session. The stock had previously closed at ₹271.75.
UBS highlighted positive momentum in the food delivery sector, reporting industry volumes growing by 2.5% month-on-month (MoM) in August 2024, adjusted for the number of days. Although Zomato’s order growth of 1.8% MoM lagged behind Swiggy’s 3.1%, Zomato’s overall August 2024 volumes were 25% higher compared to December 2023, surpassing Swiggy’s 18% growth during the same period.
Additionally, UBS projected a 7% quarter-on-quarter (QoQ) growth in gross merchandise value (GMV) for Zomato in Q2 FY25, contributing to the bullish sentiment around the stock. This strong outlook has fueled investor confidence, leading to today’s upward movement in Zomato’s stock price.
