Zomato shares hit record high on bullish market sentiment

New Delhi: Zomato's share price saw a rise of over a percent In early trade on Friday, marking the sixth consecutive session of gains. The surge propelled Zomato shares to a new record high of Rs 199.75 on the BSE, representing a gain of 1.49 percent. This surge comes as brokerage firms revised the target price for the food delivery platform, projecting a 32 percent increase compared to its closing price on April 11.

Zomato's stock has maintained an impressive winning streak for 13 consecutive months, with its value soaring nearly 80 percent over the past six months. This surge has pushed its total market capitalization to Rs 1.69 lakh crore.

At 11.11 am, Zomato continued its upward trajectory, trading 1 percent higher at Rs 199 on the National Stock Exchange. Emkay Global, a brokerage firm, has revised its revenue, profit, and EPS estimates upwards for FY25 and FY26E, citing better profitability in quick commerce and lower effective tax rates.

Emkay Global also anticipates robust growth momentum for Zomato's food delivery segment, with healthy growth expected in Gross Order Value (GOV) following a 20.5% increase in 9MFY24. Additionally, the emergence of Quick Commerce (QC) companies like Blinkit, Instamart, and Zepto is seen as contributing to Zomato's growth, particularly in metros and large cities, as they expand their market coverage.

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