Zomato Limited has recently experienced notable fluctuations in its share price, capturing the attention of investors. As of October 21, 2024, Zomato’s share price stands at ₹265.15, reflecting an increase of ₹7.70 (or 2.99%) from the previous trading session. This article analyzes the recent changes in Zomato’s share price, expert opinions on whether to buy, hold, or sell, and an overview of the company’s financial health.
Zomato Share Price in Today’s Market
In today’s trading session, Zomato opened at ₹258.00 and reached a high of ₹267.00, while dipping to a low of ₹254.50. The stock’s increase from a previous close of ₹257.45 suggests a positive sentiment among investors, particularly after a four-day losing streak prior to this rebound. The trading volume has been substantial, with over 88 million shares exchanged, indicating strong market interest.
Zomato Share Financial Overview
Zomato’s financial metrics present a mixed picture amid recent price changes. The company boasts a market capitalization of approximately ₹234,729 crore and an enterprise value of ₹234,270 crore. The P/E ratio stands at a high 149.99, which may indicate that the stock is trading at a premium relative to its earnings potential. The company reported an EPS of ₹1.77, with impressive sales growth of 40.68%, although profit growth has surged dramatically by 1,071.79%, reflecting significant operational improvements.
Zomato Share Pros & Cons
Pros:
→ Strong sales growth of 40.68%, demonstrating robust demand for services
→ Impressive profit growth suggests effective cost management and operational efficiency
→ No debt on the balance sheet enhances financial stability
Cons:
→ Extremely high P/E ratio may deter value-focused investors
→ Lack of dividend yield (0%) could dissuade income-oriented investors
→ Promoter holding is currently at 0%, raising concerns about insider confidence
Indiahood Recommendation on Zomato Share: Buy or Sell?
Given the current market dynamics and financial performance, Indiahood recommends that investors consider buying Zomato shares for long-term growth potential. The recent rebound in share price and strong sales growth indicate that the company is well-positioned for future expansion.
Others Recommendation on Zomato Share: Buy or Sell?
Expert opinions on Zomato shares are varied:
→ Jefferies maintains a ‘buy’ rating with a target price of ₹335 per share, highlighting the company’s potential for further growth despite recent volatility.
→ Motilal Oswal Financial Services also recommends a ‘buy’ rating with a target price of ₹320, citing strong fundamentals and market positioning.
→ ICICI Direct suggests holding Zomato shares while monitoring upcoming financial results scheduled for October 22, which could provide further insights into the company’s performance.
→ HDFC Securities advises cautious optimism, noting that while the stock has shown resilience, investors should be aware of potential market fluctuations.
→ Zerodha recommends keeping an eye on Zomato’s strategic moves regarding its fundraising efforts through qualified institutional placement (QIP), which could impact future valuations.
Conclusion
In conclusion, while Zomato presents promising opportunities within the food delivery sector and shows signs of recovery after recent declines, its high valuation metrics necessitate careful consideration from investors. Buying shares may be prudent for those looking to capitalize on the company’s growth trajectory.
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions regarding Zomato shares or any other securities.
