Zomato Stock Hits A High: Investors Cheer Its Success

September 18, 2023

Good news for investors! Zomato, our go-to food delivery app, has soared to a 52-week high, hitting Rs 105 on September 18. Even though it dipped a bit later and settled at Rs 102.05, it's still a reason to celebrate!

Why the Excitement?
Investors are super excited because Zomato has been showing amazing growth and delivering on its promises. This boost in its stock is a clear sign that people have faith in the company's ability to grow and make profits.

A report from Jefferies, a financial expert, revealed that investors praised Zomato's CFO, Akshant Goyal, during a recent company presentation in the US. They appreciated that the company is doing exactly what it said it would a year ago. Back then, people had doubts, but now it's a different story altogether.

Zomato's Big Plans
Zomato's CFO is optimistic about the food delivery business, expecting it to grow by 20-25%. But here's the real surprise—Zomato's new quick commerce business could skyrocket with a whopping 60% growth every year! That's like zooming into the future.

Did you know that restaurants contribute only 10% to the food we consume in India? Zomato and Swiggy are playing a big role in changing this. They're helping restaurants diversify their menus, which attracts more local customers. That's one smart move!

What's the Future Look Like?
According to Jefferies, the future looks promising for Zomato. They predict that Zomato's profits from food delivery will gradually increase to 5%. And guess what? The quick commerce business might break even in just four quarters. It's like a win-win situation!

Ready for the Future
Jefferies gives Zomato a thumbs up by rating it a 'buy' and setting a target price of Rs 130. They believe that Zomato has plenty of room to grow its customer base and revenue, especially since they currently have about 20 million people using the app each month. But they also point out that this growth might affect how much money Zomato makes in the short run. It's all about the bigger picture!

After going public (IPO), Zomato has shifted gears from simply surviving to gearing up for the future. This change in focus has really impressed investors and is a big reason for their confidence in Zomato's potential.

As of 11:24 am, Zomato's shares were trading at Rs 104.10, a whopping 96% increase over the last six months.

Disclaimer: Remember, the experts' views and investment tips are their own and not endorsed by Youblog.live. It's always smart to consult with certified experts before making investment decisions.