Zomato shares: Up 155% from one-year low; here's what analysts say

Zomato's shares continued their upward trend for the third consecutive session during Thursday's trading. The stock saw a notable surge of 3.80%, reaching a new 52-week high at Rs 113.25, compared to the previous closing price of Rs 109.10. At its highest price of Rs 113.25 today, this high-performing stock has soared by an impressive 155.36% from its one-year low of Rs 44.35, recorded on January 25, 2023.

Analysts Set Target Price of Rs 160 for Zomato

Analysts at ICICI Securities have set a target price of Rs 160 for Zomato. They express confidence in the stock's valuation, foreseeing significant profitability improvements in all its businesses, making it a compelling investment opportunity.

Also read/watch - National Cinema Day 2023: Tickets at ₹99, know how to book tickets here

ICICI Securities has factored in substantial revenue growth, with estimates of 25% in FY24, 26% in FY25, and 20% in FY26 for the food delivery segment. They anticipate Zomato may experience revenue growth of 43% in FY24, 34% in FY25, and 25% in FY26.

Kotak maintains positive outlook on Zomato

Kotak Institutional Equities also maintains a 'positive' outlook on Zomato, valuing the stock at a fair price of Rs 125. They anticipate sustained improvements in Zomato's profitability metrics in the coming quarters, driven by enhanced margins in the food delivery business and a reduction in losses for the Hyperpure and Blinkit businesses.

Additionally, Zomato recently completed the liquidation of its wholly-owned subsidiary, Zomato Chile SpA. The company clarified that ZM Chile had no active business operations and was in the process of liquidation, emphasizing that this closure does not impact the company's turnover or revenue.

Overall, Zomato's stock is experiencing significant gains, backed by positive outlooks from analysts and technical experts.