Today, September 5, shares of Zomato Datalabs in-article-icon, a major player in the foodtech industry, rose 7.7% on the BSE and hit an intraday high of INR 261.50. This came after broking firm JP Morgan increased the stock’s target price from INR 208 to INR 340.
With CLSA’s previous revision to INR 353 per share, where it kept its “overweight” rating on the stock, this is Zomato’s second-highest target price.
Zomato’s Blinkit expansion, which has been successfully scaled across all major metro cities after proving its viability in the NCR region, is credited by the broking for its optimistic outlook.
The broking believes that Blinkit’s size will greatly increase advertising revenue and channel margins, which will increase monetisation. Furthermore, it stated that better store-level economics should further improve the company’s EBITDA outlook.
According to CLSA, Blinkit, owned by Zomato, is expected to gain the most from this rapid growth in online sales. By FY25, it anticipates that Blinkit’s net profit and EBITDA will be positive. Brokerages are optimistic about the company’s performance as the Deepinder Goyal-led enterprise continues to see quarterly profit increases. Blinkit’s net profit increased to INR 253 Cr in Q1 FY25 from INR 2 Cr in the same quarter last year as the company’s financial performance improved.
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