Zomato Shares Surge Nearly 8% As JP Morgan Raises Target Price To INR 340

Shares of foodtech major Zomato surged 7.7% on the BSE today (September 5), reaching an intraday high of INR 261.50 after brokerage firm JP Morgan raised the stock’s target price to INR 340 from INR 208.

This marks the second highest target price for Zomato, following CLSA’s earlier revision to INR 353 per share, where it maintained an “overweight” rating on the stock.

At 11:57 AM, the stock was trading at INR 254.75 on the BSE, marking a 4.9% rise from the previous day’s close.

JP Morgan’s revised target price indicates a 40% upside from the stock’s last closing price at INR 242 per share.

The brokerage attributed its bullish outlook to Zomato’s expansion of Blinkit, which has been successfully scaled across all major metro cities after demonstrating its viability in the NCR region.

The brokerage anticipates Blinkit’s scale will significantly boost monetisation through channel margins and advertising revenue. Moreover, improved store-level economics are expected to enhance the company’s EBITDA outlook further, it said. 

Meanwhile, CLSA said that Zomato-owned Blinkit stands to benefit the most from this quick commerce boom. It expects Blinkit’s EBITDA and net profit to turn positive by FY25.

Brokerage CLSA also expects the gross order value of major quick commerce players like Blinkit, Zepto and Swiggy Instamart to reach $10 Bn by the financial year 2025-26 (FY26), while also highlighting that Zomato will be the largest listed beneficiary in the quick commerce space.

Brokerages are positive on the company’s performance after Deepinder Goyal-led business continues to see its profit rise quarter after quarter. In Q1 FY25, its net profit jumped to INR 253 Cr from INR 2 Cr in the year-ago quarter, as Blinkit continued to show improvement in its financial performance.

The company’s quick commerce segment Blinkit posted a revenue of INR 942 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), up 145% from INR 384 Cr reported in the year-ago period.

Updated at 04.40 PM

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.