Zomato Ltd. shares, which have been a strong performer recently, received a new bull call from a prominent portfolio manager. On the back of rising demand for online food delivery and geographical expansion, the stock has got a target of Rs 800 apiece in the next five years from Vijay Chopra, chief executive officer of Enoch Ventures.
"I think that Zomato is a multibagger in the making. I won't be surprised if the stock trades at Rs 800 in five years," Chopra, told NDTV Profit.
The company has redefined how people order food and the altered lifestyles benefit online food aggregators like Zomato and rival Swiggy Ltd. With regards to a pick between the two, Chopra placed his bet on the former, noting its profitability.
He said Zomato is now expanding operations in tier two and three towns, a move that can unlock new sources of revenue. "If a restaurant doles away 25–30% of the entire bill value (to Zomato), it will be serious money the company will be making. They have increased their delivery charges, which will bolster the bottom line," Chopra said.
The ease and convenience they have introduced in the lives of people, Zomato has done a fabulous job.Vijay Chopra
On the technical side, Zomato stock is facing resistance at the Rs 300 level but has been consistently maintaining its uptrend, said Meghna Malkan, wealth mindset coach and author. She placed a target of Rs 380 apiece in the immediate future with a strong support level seen at Rs 240.
Also Read: Zomato, Swiggy, Paytm Stocks Among Samir Arora's Top Picks Amid Current Market Volatility
The share price surged over 7% intraday on Monday after BSE Ltd. added the restaurant aggregator and food delivery company in its benchmark gauge—Sensex—effective Dec. 23. It will replace JSW Steel Ltd.
Zomato share price closed 3.3% higher at Rs 272.9 apiece, compared to a 1.3% advance in the benchmark Nifty 50. The stock saw its best session since Aug. 7 this year, taking its market capitalisation to Rs 2.4 lakh crore.
It has risen 136% during the last 12 months and 121% on a year-to-date basis.
Of the 27 analysts tracking the company, 24 have a 'buy' rating on the stock and three have a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 7.3%.
RECOMMENDED FOR YOU
Tata Consumer Products Sees Food Inflation As 'Short-Term Blip', Expects Revival
Nov 25, 2024
Britannia Industries Share Price Hits Over Six–Month Low Following FSSAI Notice
Nov 21, 2024
Zomato Food Rescue: Plate Half Full, Restaurateurs Say 'No Thanks!'
Nov 14, 2024
US Core CPI Remains Firm For Third Straight Month With 0.3% Gain
Nov 13, 2024
POPULAR