The shares of Zomato rallied by more than 17% in the early trading session on Tuesday and were trading at Rs 54 levels. In the last five days, the stock has added more than 28%. Despite the rally, the stock is still down by 61% YTD.
The rally comes after Zomato published its quarter one result for FY22. The company’s total income rose to Rs 1,582 crore this quarter against Rs 916.6 crores which it earned in the corresponding period of last year.
Zomato was able to narrow down its losses to Rs 186 crores in Q1FY22 from Rs 360.7 crore in the year-ago period.
This quarter the company was able to make its food delivery business hit break-even at the EBITDA level.
Zomato’s average monthly transacting customers increased to 16.7 million, and the average monthly active restaurant partners stood at 208,000.
Zomato is an Indian multinational restaurant aggregator and food delivery company. It also offers information, menus, and user reviews of restaurants as well as food delivery options from partner restaurants in select cities.
Here is what brokerages have to say about stock and the company post its June quarter earnings:
The foreign brokerage firm has maintained a buy rating on the stock with a target at Rs 100 per share which represents an upside of 85% from the current levels.
“The food delivery segment is narrowing losses and acquired firm Blinkit is scaling up at a robust pace,” said the brokerage.
The research firm has kept a buy call on the stock with a target price of Rs 95 per share which represents an upside of 76% from the current levels.
UBS believes growth drivers continue to remain strong and losses continue to reduce on a sequential basis.
Written by – Anoushka Roy
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