Zomato Share Price NSE BSE News: Shares of Zomato registered modest gains on Monday, snapping a four-day winning streak, after foreign brokerage Jefferies maintained its ‘buy’ rating on the stock, implying a rise of more than 30 percent from its previous close. Zomato stock rose as much as Rs 9.6, or 3.7 percent, to Rs 267 each on the BSE and NSE, marking a recovery of almost half of the losses recorded in the last four seasons.
At 2:20 pm, Zomato shares were trading at Rs 261.5 and Rs 261.4 each on BSE and NSE respectively.
On Thursday, Zomato said its board will meet on Tuesday to consider raising capital by placing equity shares, subject to regulatory and other necessary approvals. Its board will also consider its financial results for the July-September period on that date.
Zomato Share Price News | How Jefferies views a food delivery company
Describing Zomato’s move to announce QIP as “surprising yet exciting”, Jefferies emphasized that the decision comes despite the company’s $1.2 billion balance sheet and increased free cash flow (FCF) in its food division.
The potential $1 billion raise, if confirmed, and Zomato’s move to apply to the RBI for its 49 percent FII ownership will likely turn Zomato into a homegrown company, creating a first-party model in fast-paced commerce that can improve profitability.
This may also result in stock removal from the entire MSCI platform and the FII holding process may take some time, according to the brokerage.
Currently, Zomato’s subsidiary, Blinkit, uses a marketplace model where local third-party entrepreneurs own shares and sell them to users on Blinkit’s platform.
The inventory model will allow Blinkit to have tighter control over inventory and take calculated risks when it comes to launching or scaling new categories, as it expands beyond grocery, according to Jefferies.
How other analysts view Zomato
Domestic Brokerage Motilal Oswal Financial Services has a ‘buy’ rating on Zomato with a price target of Rs 320.
Zomato Q2 FY25 Result Date
Zomato is scheduled to announce its financial results for the July-September period (Q2 of FY25) on October 22.
Zomato Shares Price History
Shares of Zomato have more than doubled in value in 2024 so far, with a return of 110 percent, far outstripping the 14.3 percent rise in the headline index Nifty50.
At Monday’s high, Zomato’s stock commanded a premium of 251 percent over its high issue price.
Zomato shares will enter the listing space in July 2021.
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