📷 Image Credits: The Economic Times
Zomato, the popular food delivery company, has been making waves in the market with its stellar performance, surpassing its competitor Swiggy. The international brokerage firm CLSA has set a target price of Rs 248 per share for Zomato, recognizing its lead over Swiggy, which is gearing up for an IPO. In the recent annual results release by Prosus, holding a significant stake in Swiggy, it was revealed that Swiggy’s overall Gross Merchandise Value (GMV) growth was 26% year-on-year, while Zomato achieved an impressive 32% year-on-year growth.
Zomato’s stock price surged by over 61% this year, driven by its robust performance and positive outlook from various brokerages. The market responded positively to the news, with Zomato shares gaining over 2% in early trade. Several brokerages, including CLSA, UBS, Emkay Global, Morgan Stanley, and Bernstein, have issued buy ratings on Zomato, with target prices ranging from Rs 230 to Rs 250, showcasing confidence in the company’s growth trajectory and market position.
Analysts at Emkay Global attributed Zomato’s exceptional growth to the impressive performance of its Quick Commerce segment. Swiggy, on the other hand, reported a 24% year-on-year revenue growth, trailing behind Zomato’s remarkable adjusted revenue growth of nearly 56% year-on-year. The revenue numbers further solidify Zomato’s dominance in the market and its ability to deliver strong financial results.
The positive sentiment around Zomato is further exemplified by its stock performance, with shares trading higher on the National Stock Exchange (NSE). At 1:45 pm, Zomato shares were trading 0.96% higher at Rs 200.83 on the NSE, reflecting investor confidence and market optimism. Overall, Zomato’s stock has witnessed a significant uptrend, with a 60% increase in a year and a remarkable 168% surge in a year, underlining its growth trajectory and market leadership.
