Shares of Zomato Ltd. climbed by up to 3% on Tuesday, June 25, approaching their all-time highs. This surge follows positive evaluations from brokerage firms such as CLSA, UBS, and Goldman Sachs. These firms remain optimistic about the stock after investor Prosus revealed Swiggy’s operating performance data for 2023.
Goldman Sachs, which has a ‘Buy’ rating and a target price of ₹240 per share, noted that Swiggy’s disclosures indicate potential market share gains for Zomato.
Recent data shows that Zomato has increased its market share in both food delivery and quick commerce. Zomato’s market share now stands at nearly 57%, up by 200 basis points from the previous period. In the quick commerce segment, Zomato’s scale is 50% larger than its closest competitors.
According to Goldman Sachs, Zomato’s improving profitability, particularly in quick commerce, could lead to higher valuation multiples.
As of 10:56 AM, Zomato shares were trading 1.62% higher at ₹202.15 on the NSE.
