Zomato’s shares were trading at INR 135.55 apiece at 11:30 am during Monday’s(January 15) session
Around 4.5 Cr shares of Zomato changed hands in a block deal on Monday, valuing the total transaction at INR 622 Cr
Recently, HSBC, Goldman Sachs and Jefferies increased their price targets (PTs) on the foodtech major
Zomato’s stock dropped nearly 3% during early trade on Monday’s (January 15) session after around 4.5 Cr shares of the food delivery giant changed hands in a block deal, valuing the total transaction at INR 622 Cr.
Zomato’s shares were trading at INR 135.55 apiece at 11:30 am as compared to the previous close at INR 139.6.
However, the report couldn’t ascertain the buyers and sellers involved in the deal.
Recently, HSBC, Goldman Sachs and Jefferies have increased their price targets (PTs) on Zomato on the back of the strong growth in its food delivery and quick commerce businesses.
Goldman Sachs hiked its PT on Zomato to INR 160 from INR 130 earlier and Jefferies raised its price target on Zomato to INR 190 from INR 165 earlier. On the other hand, HSBC raised its target for the stock by INR 10 to INR 150 per share.
The share price of the foodtech major more than doubled last year. The stock, which was trading in the INR 50-60 range in the first month of 2023, ended the year at above INR 120.
Zomato has been focusing on its profitability lately. The startup reported its second consecutive profitable quarter, with profit after tax surging to INR 36 Cr during the September quarter of the financial year 2023-24 (FY24). This was an 18X jump from PAT of INR 2 Cr in the preceding quarter.
Now, all the analysts have started keeping track of Zomato’s quick commerce arm Blinkit’s business growth as they expect the business to drive Zomato ahead.
Blinkit turned contribution positive for the first time during the quarter ended September 30, 2023 (Q2 FY24). Blinkit’s average order value rose to INR 607 from INR 582 in Q1 FY24.
Meanwhile, Zomato and Swiggy, the duo, reportedly received notices for a cumulative goods and services tax (GST) worth around INR 1,000 Cr, which is the 18% tax levied on the total amount collected by them as delivery fees ever since they started offering food delivery services.
