Zomato share price in focus today after the company posted its Q4 results, leading to brokerages revising their target price for Zomato stock higher and expect upto 26% upside in Zomato share price from current levels. The food delivery giant, Zomato posted an impressive quarterly earnings report for the period ending March 31st. The company reported a consolidated net profit of Rs 175 crore from the Rs 189 crore loss posted in the same period last year.
Driving this robust performance was a substantial increase in revenue from operations, which surged to Rs 3,562 crore, up from Rs 2,056 crore in the corresponding period last year.
Analysts from prominent brokerage firms have reacted positively to Zomato’s results, with several firms revising their price targets upwards and expressing optimism about the company’s future prospects. CLSA, for instance, has maintained a “Buy” rating on Zomato stock and raised its target price to Rs 248. The brokerage firm highlighted Zomato’s strong guidance for Blinkit, its focus on quick commerce growth, and the impact of ESOP costs on profitability in the fourth quarter.
Similarly, CITI reiterated its “Buy” rating on Zomato shares and raised its target price to Rs 235. The firm noted that Zomato delivered largely in-line fourth-quarter results, with a modest miss driven by non-food delivery, non-quick commerce verticals. However, CITI highlighted Zomato’s achievement of adjusted EBITDA breakeven in quick commerce in March 2024 and its sharp acceleration of dark-store footprint in this segment.
Bernstein maintained an “Outperform” rating on Zomato stock, raising its target price to Rs 230. The firm expressed confidence in Zomato’s quick commerce business reaching breakeven milestones and commended its impressive growth, particularly in Blinkit. Furthermore, Jefferies reiterated a “Buy” rating on Zomato shares and raised its target price to Rs 230, emphasizing management’s focus on aggressive growth and the doubling of store count expected in the coming year.
