Shares of Zomato, a food delivery company, have recently seen a significant increase in their value. The price of Zomato’s stock reached a new high of Rs 137.5, which is over a 2% increase. This surge comes after HSBC, a major global financial firm, recommended buying Zomato’s stock and predicted its price to go up to Rs 150, a 9% increase from its current value. Over the last month, Zomato’s stock has risen by more than 15%, compared to a 2% increase in the Sensex, a primary stock market index.
HSBC analysts believe that Zomato has a promising future, even though they expect growth to be slower in 2024. They caution that any decrease in the development of quick commerce, a crucial part of Zomato’s business, could be a risk.
Elara Securities, another analyst firm, also recommends buying Zomato’s stock with a target price of Rs 150. They point out that Zomato’s increased convenience fees, income from ads, and restaurant commissions could boost the profitability of its food delivery service.
They predict that Zomato will see a slight increase in its take rate (the percentage of the total order value that Zomato earns) in the next two years, thanks to a slight increase in convenience fees. Recently, Zomato raised its platform fee for delivery services by 33%, from Rs 3 to Rs 4 per order, and also increased its convenience fee. These changes have already helped improve Zomato’s earnings.
At 10:45 am, Zomato’s stock was trading at Rs 137.30 on the BSE, almost 2% higher than its previous closing price.
