Shares of online food delivery app Zomato hit an all-time high on Monday after foreign brokerage UBS remained positive about the company and raised its target price for the stock by Rs 60 to Rs 320. At 1.39 pm zomato shares were trading at Rs 267 apiece, up Rs 2.50 or 0.95 percent.
Zomato’s stock rose by Rs 15.5, or 5.9 percent, reaching a new record of Rs 280 on the BSE. It later settled at Rs 267 apiece. Zomato’s new peak surpasses the previous record of Rs 278.5 set on August 2. The brokerage’s target suggests the stock could rise by Rs 40, or 14.3%, from its current level, said Zeebiz website.
According to Zee Business research, Zomato subsidiary Blinkit has reached several milestones ahead of the Rakhi festival, reaching sales of 693 Rakhis a minute.
According to UBS, Zomato’s gross merchandise value (GMV) exceeded analysts’ expectations in the food delivery and Blinkit businesses in the June quarter. GMV is a key metric that determines the total value of sales of goods and services on a platform over a given period of time. It is a common metric used to gauge the performance of e-commerce businesses.
Zomato Q1 FY25
The online food aggregator recently reported a 74 per cent growth (year-on-year) in revenue to Rs. 4,206 crore in Q1 FY25.
It posted over 126 per cent growth in net profit to reach Rs. 253 crore in the April-June quarter (Q1 FY25), from Rs. 2 crore in net profit in the same quarter last year.
