With 118% gains so far this year and over 130% in the past year, Zomato Stock has provided investors with multi-bagger profits. Experts, however, predict a 45% increase in this multibagger stock. Here’s why.
Strong Q2 Results
Zomato has performed well in the second quarter; the company’s Q2FY25 net profit rose 389% to ₹176 crore from ₹36 crore the year before. Revenue reached ₹4,799 crore, up 68.5%. However, a 30.43% drop in net profit from Q1FY25 was brought on by a reduction in cash balance after Paytm’s ticketing business was acquired.
Zomato’s B2C division experienced robust gross order value (GOV) growth, increasing by 55% yearly and 14% sequentially. The Blinkit company is still performing well despite increasing competition; in Q2FY25, it recorded a 20% sequential increase.
According to Axis Securities analysts, Zomato would exhibit exponential growth from FY25 to FY26 due to its strong brand value, growing demand for B2C business, and speedy commerce. As a result, they raise their target price and keep their recommendation on the stock.
Regarding the medium- to long-term forecast, the management is still optimistic. It has also been suggested that FY25 will probably be better than FY24.
According to Elara Securities India Pvt Ltd, the holiday season will support growth acceleration in H2. According to guidance, they project that EBITDA (as a percentage of GOV) will increase to 4-5% in FY27. Taking into account increased sales from the Going Out business, which was driven by the Paytm purchase, they raised their projections for combined revenue and earnings.
“Zomato has exhibited a consistent upward move since June and made a high of 298 in September. A valid correction then followed with a lower top formation and then the stock made a low of 240 in November”, said Bharat Gala, COO of Equity broking- at Ventura Securities.
According to Gala, it has favourable KST (price momentum indicator), Aroon chart indicator Up/Down, and Demand Index indicators. He also mentioned that it recently showed a symmetrical triangle breakout by a positive weekly price candle backed by volumes. Zomato is now obviously trading above its moving average after hovering around it for some time. According to Gals, the aim is 400 with support levels of 260, 254, and 248 where further shares can be acquired. He added that 238 would be the stop loss.
