Zomato Limited has recently experienced significant fluctuations in its share price, drawing attention from investors. As of October 22, 2024, Zomato’s share price is ₹684.00, reflecting a decrease of ₹41.95 (or 5.78%) 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 ₹727.00 and reached a high of ₹728.80, while dipping to a low of ₹669.80. The stock’s decline from a previous close of ₹725.95 indicates bearish sentiment among investors. The trading volume has been substantial, with approximately 21,530,805 shares exchanged.
Zomato Financial Overview
Zomato’s financial metrics reflect a challenging operational environment amid recent price changes. The company boasts a market capitalization of around ₹43,708 crore and an enterprise value of ₹39,614.83 crore. The P/E ratio stands at 0, indicating that the company is currently not profitable; however, it has shown profit growth of 1,071.79%, reflecting significant operational improvements.
Zomato Pros & Cons
Pros:
→ Exceptional profit growth of 1,071.79%, indicating effective management strategies despite challenges
→ Strong sales growth of 40.68%, suggesting increasing demand for its services
→ Healthy cash reserves of ₹459 crore enhance financial stability
Cons:
→ Negative EPS of ₹-27.62, suggesting ongoing profitability challenges
→ High volatility in share price may raise concerns among risk-averse investors
→ Limited dividend yield at 0%, which may not appeal to income-oriented investors
Indiahood Recommendation on Zomato: Buy or Sell?
Based on current market dynamics and financial performance, Indiahood recommends that investors consider holding onto Zomato shares for now. While the company shows potential for recovery given its strong sales growth and substantial cash reserves, ongoing profitability challenges necessitate caution before making new investments.
Others Recommendation on Zomato: Buy or Sell?
Expert opinions on Zomato shares are varied:
→ ICICI Direct maintains a ‘hold’ recommendation with a target price of ₹750, citing the company’s strong fundamentals and potential for recovery in the food delivery market.
→ Motilal Oswal Financial Services suggests a cautious approach with a target price of ₹720, advising investors to monitor market conditions closely.
→ HDFC Securities recommends buying on dips due to the potential for recovery as digital food delivery continues to grow.→
Zerodha encourages investors to keep an eye on upcoming quarterly results to gauge improvements in profitability and overall performance.
→ Equity Pandit advises a wait-and-see approach, suggesting that investors wait for clearer signals before making significant moves.
Conclusion
In conclusion, while Zomato presents opportunities within the food delivery sector with its strong sales growth and substantial cash reserves, its ongoing profitability challenges necessitate careful consideration from investors. Holding shares may be prudent until clearer signals emerge regarding the company’s path to sustained profitability.
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. Feel free to copy and paste this formatted content!
