Zomato Rallies on Q4 Revenue Jump; Brokerages See Upto 111% Upside in Stock

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Zomato Rallies on Q4 Revenue Jump; Brokerages See Upto 111% Upside in Stock

By Malvika Gurung

Investing.com -- Shares of the new-age digital company Zomato (NS: ZOMT ) Ltd have been on a bull ride on Tuesday, rallying over 19% in early trade, after it released its earnings results post-market hours on Monday.

The company’s revenue from operations jumped 75% YoY to Rs 1,212 crore in the March quarter, even though its net losses widened 168% YoY to Rs 359 crore in the period, led by higher expenses.

Read Also: Zomato Shares Make Biggest Intraday Jump Since Listing, M-Cap Exceeds Rs 50,000 Cr

Global brokerages have turned positive on the company, upgrading their target prices.

UBS (NYSE: UBS ) has stated Zomato’s Q4 results to be slightly ahead of estimates, witnessing a healthy quarter, and sees growth drivers continuing to remain strong going ahead. It has maintained a buy rating on the stock, setting a target of Rs 130/share.

JPMorgan (NYSE: JPM ) said that the company’s adjusted Ebitda losses continued declining, while GOV grew strong as orders rebounded, and food delivery revenues were reinstated in Q4. It has set a target of Rs 130/share on the stock.

Global agency Morgan Stanley (NYSE: MS ) has set a target of Rs 135/share on the stock, an upside of 110.93% compared to the current price, and maintained an overweight stance on it, as the company’s Q4 numbers were in line with estimates, with improved transparency on segment disclosures.

It also sees an improved Q1 outlook and a tighter framework around capital allocation.

In the long-term, Zomato’s contribution margin is likely to get to a double-digit, as the company aims for accelerated growth while focusing on loss reduction, and alignment with shareholder expectations stated Jefferies (NYSE: JEF ). It added, “1QFY23 loss should come down meaningfully”.

The brokerage has set a Buy call on the stock, with a target price of Rs 100/share.

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  • Pradeep Kumar @Pradeep Kumar
    I HV 2000 shares of zomato at buying price 110, how long to wait for my loss recovery
    Like 0
  • Gaurav Rajpoot @Gaurav Rajpoot
    NOW ZOMATO SHARES CAN BOOM
    Like 1
  • Hot Man @Hot Man
    yes buy on dips ....82-85 coming days above 100 good recovery 130 to 150+
    Like 1
  • Gourav Chourasiya @Gourav Chourasiya
    right time to inter zomato
    Like 1
    • Nitesh Agrawal @Nitesh Agrawal
      yes
      Like 0
    • Nitesh Agrawal @Nitesh Agrawal
      yes
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

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      100
  • Gourav Chourasiya @Gourav Chourasiya
    right time to inter zomato
    Like 0

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