Tue Jan 21 08:08:46 UTC 2025: ## Zomato Share Price Plunges 9% After Q3 Results, Despite Broker Optimism

**Mumbai, January 21, 2024** – Zomato’s share price experienced a significant drop of up to 9% in early trading today, following the release of its December quarter results. The online food delivery company reported a net profit of ₹59 crore for Q3 FY24-25, a 57.3% year-on-year decline from ₹138 crore in the same period last year. This also represents a 66.5% decrease compared to Q2 FY24-25’s ₹176 crore. Despite this decrease in profit, Zomato’s operational revenue saw a substantial 64% year-on-year increase, reaching ₹5,405 crore.

While the broader market also experienced a downturn, several brokerage firms remain bullish on Zomato’s long-term prospects. Motilal Oswal maintained a ‘BUY’ rating with a target price of ₹270, representing a 13% upside from Thursday’s closing price of ₹240. Nuvama also reiterated its ‘BUY’ rating, albeit with a revised target price of ₹300 (previously ₹325), indicating a 25% potential upside. JM Financial issued a ‘BUY’ recommendation with a ₹280 target price (17% upside), while ICICI Securities set a target price of ₹310, suggesting a 30% potential upside.

Brokerages cited Zomato’s stable food delivery business and the disruptive potential of Blinkit in the quick commerce sector as key reasons for their optimism. However, they acknowledged that Blinkit’s rapid expansion is impacting short-term profitability due to high costs.

Despite the positive broker assessments, Zomato’s stock has underperformed recently, declining over 20% in the last three months and 25% in the last month. The stock’s 52-week high is ₹304, and its 52-week low is ₹128.10. Its total market cap on the BSE stands at ₹2,04,876.94 crore. Investors are advised to consult with their financial advisors before making any investment decisions.

Read More