Zomato Ltd. is a leading food delivery and restaurant aggregator platform in India, known for its extensive network and innovative services. As of October 14, 2024, the Zomato share price is ₹282.65, reflecting an increase of 1.84% from the previous trading session. The stock opened at ₹280.90 and has seen a trading volume of over 18.14 million shares so far today.
Zomato Share Price in Today’s Market
In today’s trading session, the Zomato share price reached a high of ₹285.25 and a low of ₹279.00. The current market capitalization stands at approximately ₹249,791 crore, highlighting its significant presence in the food tech industry.
Zomato Financial Overview
Zomato has an enterprise value of ₹249,023.75 crore and approximately 883.44 crore shares outstanding. The company’s P/E ratio is reported at 159.41, while its P/B ratio stands at 11.05. Recent financial reports indicate a sales growth rate of 40.68% and an impressive profit growth rate of 1,071.79%. With cash reserves of ₹459 crore and no debt on its balance sheet, Zomato demonstrates strong fundamentals.
Zomato Share Pros & Cons
Pros:
- Exceptional Profit Growth: A profit growth rate of 1,071.79% reflects effective management and operational efficiency.
- Healthy Sales Growth: A sales growth rate of 40.68% indicates robust demand for its services.
- No Debt: With zero debt on its balance sheet, Zomato is well-positioned for future investments and expansion.
Cons:
- High Valuation Ratios: A P/E ratio of 159.41 raises concerns about whether the stock is overvalued compared to industry peers.
- Market Volatility: A beta of 0.82 indicates that the stock is less volatile than the broader market but still presents risks.
- No Dividend Yield: With a dividend yield of 0%, income-focused investors may find this stock less appealing.
Indiahood Recommendation on Zomato Share: Buy or Sell?
Considering the current market conditions and the fundamentals surrounding Zomato Ltd., it is advisable to hold your position for now while monitoring market trends closely. Investors should wait for clearer signals before making new investments.
Conclusion
In summary, while the recent increase in Zomato’s share price may raise optimism among investors, its strong sales and exceptional profit growth provide compelling reasons to consider holding onto this stock. However, potential investors should also be aware of high valuation ratios before making investment decisions.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
