Thu Nov 21 04:30:00 UTC 2024: ## Zomato Shares Surge, Reaching Near 52-Week High Amidst Conflicting Analyst Opinions

**Mumbai, India** – Zomato Ltd.’s stock price has experienced a remarkable rebound, climbing 141.21% from its 52-week low of Rs 112.50, reached last November. Currently trading near its 52-week high of Rs 298.20 (September 24, 2024), the stock has shown impressive growth, gaining 304% over the past two years and 122.10% in the last year. This strong performance is reflected in the stock’s position above all major moving averages. The company’s market capitalization has also risen to Rs 2.39 lakh crore.

Despite the impressive rally, analyst opinions remain divided. Morgan Stanley maintains an “overweight” rating, raising its target price to Rs 355, citing Zomato’s substantial market share in food delivery and quick commerce, strong execution, and projected profitability. They predict a significant profit pool by 2030, even accounting for aggressive expansion investments.

However, Macquarie holds a contrasting “underperform” rating with a target price of Rs 130, expressing concerns about the fundamental growth and unit economics of both Blinkit and Zomato Food Delivery. Macquarie also notes that current estimates price in a considerable growth rate for the next 10 years.

Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers, identifies resistance at Rs 280 and support at Rs 240. He advises investors to consider profit-booking near Rs 278-280, given the proximity to the resistance level, and to avoid new long positions until a decisive break above Rs 280 is observed. The recent strong rebound from Rs 240, however, suggests significant buying interest.

Zomato’s share price volatility has been relatively low over the past year (beta of 0.8), although the stock trades at a high price-to-book ratio (9.93) and a high price-to-earnings ratio (143.46). Its book value per share stands at Rs 25.80. Yesterday’s trading volume on BSE was 12.44 lakh shares, with a turnover of Rs 33.75 crore.

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