In recent trading sessions, Zomato Limited has experienced notable fluctuations in its share price. As of November 18, 2024, the Zomato share price is recorded at ₹270.30, reflecting an increase of ₹0.64 or 0.24% for the day. This article will explore the latest changes in Zomato’s share price, its financial overview, recent news, and expert recommendations to help investors decide whether to buy, hold, or sell.
Zomato Share Price in Today’s Market
Today, Zomato’s share price opened at ₹274.30 and closed at ₹270.30, marking a slight increase from the previous close of ₹269.66. The stock reached a high of ₹274.40 and a low of ₹269.36, with a trading volume of approximately 59,799,056 shares. The market capitalization currently stands at ₹239,279 crore, indicating strong investor interest amidst ongoing market dynamics.
Zomato Share Financial Overview
Zomato has reported an EPS (earnings per share) of ₹1.89, with a P/E ratio of 143.14, suggesting that the stock may be overvalued compared to its earnings potential. The P/B ratio stands at 9.9, indicating that investors are paying a premium for the company’s assets relative to its book value of approximately ₹27.34 per share. Notably, the company has no debt on its balance sheet and maintains a cash position of approximately ₹459 crore.Zomato has demonstrated impressive sales growth of 40.68%, while profit growth has surged by an extraordinary 1,071.79%, showcasing effective management and operational efficiency.
Recent News of Zomato Share
- Analyst Upgrades: Morgan Stanley recently upgraded Zomato’s stock rating to ‘overweight’ and raised its price target from ₹278 to ₹355, citing the company’s strong position in the quick commerce market.
- Market Performance: The stock has seen increased trading volume recently as it approaches its 52-week high, reflecting heightened investor interest.
- Growth Potential: Analysts project that Zomato could double its stock value within five years due to its expanding share in India’s quick commerce market, which is expected to reach $42 billion by 2030.
Zomato Share Pros & Cons
Pros:
- Strong sales growth indicates increasing demand for Zomato’s services in both food delivery and quick commerce sectors.
- Recent analyst upgrades reflect confidence in the company’s long-term growth potential.
- No debt on the balance sheet provides financial stability and flexibility for future investments.
Cons:
- High P/E ratio raises concerns about valuation compared to industry peers.
- Recent profit growth could be unsustainable if market conditions change.
- Dependence on regulatory frameworks and competition may introduce uncertainty in future earnings.
Indiahood Recommendation on Zomato Share: Buy or Sell?
Considering the current market dynamics and financial health of Zomato, it is advisable for existing investors to adopt a Hold strategy while new investors may consider buying on dips around ₹260 for potential long-term gains.
Others Recommendation on Zomato Share: Buy or Sell?
Several analysts have provided insights on Zomato’s stock:
- ICICI Direct: Recommends a Buy with a target price of ₹355 based on expected growth from new service initiatives and market expansion.
- Motilal Oswal: Suggests maintaining a Hold rating with a target price of ₹300, reflecting cautious optimism regarding future performance.
- Economic Times: Reports that analysts remain bullish on Zomato’s long-term prospects due to its strong fundamentals and strategic focus on expanding its service offerings.
Conclusion
Zomato presents an intriguing opportunity for investors looking to gain exposure in the food delivery and quick commerce sectors. While there are concerns regarding valuation and competition from other players like Swiggy, the company’s strong sales growth and strategic initiatives suggest potential for long-term recovery.
Disclaimer
This article is intended for informational purposes only and should not be considered as financial advice. Investors are encouraged to conduct their own research or consult with financial advisors before making investment decisions regarding Zomato shares or any other securities.
