Zomato Shares Surge 19% Following Positive Q1 Results and Analyst Upgrades

Shares of Zomato Ltd., the prominent food delivery aggregator, surged by 19% to ₹278.7 after analysts revised their price targets following the company’s strong June quarter results.

Brokerage firm CLSA led the charge, maintaining a “buy” recommendation and raising its price target from ₹248 to ₹350, the highest on the street. CLSA also increased its earnings forecasts by 6% to 36% for Zomato between FY 2025 and FY 2027, highlighting Blinkit’s improved performance despite the rapid expansion of dark stores.

Motilal Oswal echoed the bullish sentiment, raising its target to ₹300. The brokerage noted that Blinkit presents a unique opportunity for investors to engage in significant industry disruptions, including in retail, grocery, and e-commerce sectors. It anticipates Zomato achieving margins of 4% and 8.7% in FY 2025 and FY 2026, respectively.

Equirus and ICICI Securities also set targets of ₹300 or higher for Zomato. Meanwhile, Morgan Stanley revised its target up to ₹278 from ₹235, maintaining an “overweight” rating. The firm is optimistic about Zomato’s growth prospects in food delivery and quick commerce.

Nomura and Citi have also increased their price targets, with Nomura setting a new target of ₹280 and Citi raising its target to ₹280, both retaining “buy” ratings. Jefferies and Bernstein maintained their “buy” and “outperform” ratings, respectively, with revised targets of ₹275 and ₹275.

Currently, Zomato’s shares are trading at ₹270.58, having reached an intraday high of ₹278.7. The stock has more than doubled in 2024, reflecting a 120% return so far this year.