Zomato Shares Drop Ending Six-Day Gaining Streak

Zomato Ltd. shares dropped more than 5% in early trade on Monday ending a six-day gaining streak that was fuelled by robust Q1 results.

The stock had rallied over 19% in the previous session to hit a lifetime high of Rs 278.45 per share on BSE. The rally in the stock was seen after a robust performance in the first quarter of FY25, with profit rising 45% year-on-year to Rs 253 crore.

• Revenue up 74% at Rs 4,206 crore versus Rs 2,562 crore.

• Adjusted Ebitda at Rs 299 crore versus Rs 12 crore.

• Net profit up 45% to Rs 253 crore up from Rs 175 crore.

Several brokerages raised their target price on the stock, following the announcement of the first-quarter results.

Morgan Stanley retained its "overweight" rating on the stock, revising the target price to Rs 278 per share from Rs 235 apiece.

Nomura raised the target price to Rs 280 on Zomato from Rs 225 earlier, giving it a 'buy' rating.

Citi termed Zomato's results as a "stellar quarter", raising its price target to Rs 280 per share from Rs 235 apiece on the stock.

The company's quick commerce vertical, Blinkit, also reported a strong revenue growth of 145% to Rs 942 crore in the first quarter of fiscal 2025, compared to Rs 384 crore in the same period last year.

The company's overall gross order value surged to Rs 15,455 crore, registering a growth of 53% YoY and 14% QoQ. The company’s food delivery GOV increased 27% on a YoY basis and 10% QoQ. Blinkit's GOV increased 130% year-on-year.

Shares of Zomato fell 5.09% before paring loss to trade 1.93% to Rs 257.27 per share as of 12:23 p.m. This compares to a 2.82% fall in the NSE Nifty 50.

The stock has risen 107.2% year-to-date. Total traded volume so far in the day stood at 3.8 times its 30 day average.

Of the 28 analysts tracking the company, 25 maintain a 'buy' rating and three suggest a 'sell', according to Bloomberg data. This average 12-month analysts' consensus price target implies a 2.4% upside.