ICICI Sec Says Zomato "Great Value Buy"; Sees 78% Upside

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ICICI Sec Says Zomato "Great Value Buy"; Sees 78% Upside

By Aditya Raghunath

Investing.com -- Online food delivery player and restaurant aggregator Zomato Ltd (BO: ZOMT ) has divided investors sharply. It is a loss-making company but the company had a stellar debut on the exchanges and on August 20, closed at Rs 139.3, over 83% from its issue price of Rs 76.

However, since then, the stock has fallen 9% and closed August 25 at Rs 123.5. Nevertheless, ICICI Securities Ltd (NS: ICCI ) is very bullish on the stock.

In a note on Saturday, the brokerage said, “In our view Zomato is a great value stock, unlike what the Street believes it to be.” ICICI Securities call Zomato a “high conviction buy” and estimates that it will post 46% annualized growth in revenues over the next five years. It has a buy call on the stock with a target price of Rs 220, a potential upside of 78% from its August 25 closing price.

“Despite limited operational history and network effect, food-tech adoption at 16% in the Next-500 towns is encouraging. With supply interventions and stronger network effect, we see scope for further increase in adoption also given the lower restaurant density here,” said the brokerage.

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  • Ime my @Ime my
    it may be a OPrator Driven Stock...!!!
    Like 0
  • narendra singh @narendra singh
    there are so many stocks with strong fundamental. why to follow this betting advice.
    Like 5
  • mohan darnasi @mohan darnasi
    retail investors must be careful towards stock markets information.
    Like 4
  • Sunil kumar Sharma @Sunil kumar Sharma
    Problem is there this institutional buyers make money from the retail investors get us all an pinch of believing such hoax news. coming to New IPOs like payTM and other unicorns who are still negative in their balance sheets are believing they will also have a similar way.poor Retail investors.
    Like 12
  • Raul Green @Raul Green
    Valuation guru Prof. Damodaran valued Zomato at Rs. 40. And great icici securities giving target of 220. Quite interesting forecast. I won't buy just on future prediction without proven fundamentals.
    Like 7
    • Sunil kumar Sharma @Sunil kumar Sharma
      very soon that would be a reality , put on your seat belts let it get cracked if not atleast the issue price then play the game of yours.
      Like 1
    • Seji Baby @Seji Baby
      @Raul Green valuation gurus have no role in price setting it is market that will set the price. No one belived in bitcoin and most people still don't but if you have investment 1 lakh in it in 2010 now it will be worth 500 cr so now a days market is looking for potential for newer tech things& co's
      Like 4

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  • meet Singh @meet Singh
    Yes, a loss-making company is good to trap innocent retail investors
    Like 8

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