Zomato share price: Zomato's stock surged by 7.7 per cent in early trading on Thursday, reaching Rs 261.60 per share, following a significant target price upgrade by global brokerage JP Morgan. The firm raised its target for Zomato from Rs 208 to Rs 340 per share, reflecting growing confidence in the company's prospects.
This is the second-highest target price for Zomato, just behind CLSA's recent revision to Rs 353 per share, which retained its "overweight" rating on the stock.
JP Morgan's optimism centers on Zomato's rapid expansion of Blinkit, its quick commerce arm. Blinkit, which has shown strong performance in the National Capital Region (NCR), is now being scaled across major metro cities. This expansion is expected to enhance monetization through channel margins and advertising, while improved store economics could boost the company’s EBITDA outlook.
JP Morgan anticipates Blinkit to disrupt both modern retail and e-commerce, raising its FY25-27 forecast by 15-41 per cent. The firm also sees potential in Zomato's "Going Out" business, which combines core dining services with a new ticketing segment.
Blinkit, Zomato's quick-commerce division, posted an adjusted EBITDA loss of Rs 3 crore in Q1FY25, while surpassing its store addition target with the opening of 113 new stores.
Earlier this week, CLSA also identified Zomato as a top pick, highlighting the transformative impact of quick commerce on India's retail supply chain. CLSA noted that the flattening of the retail distribution channel offers brands greater visibility and competitive pricing, positioning Zomato as a key player in the evolving market.
Meanwhile, the two major equity indices, Sensex and Nifty, erased their early gains and traded flat on Thursday amid mixed global cues. By 11:10 AM, the BSE Sensex had fallen 123 points to 82,230, while the NSE Nifty50 slipped 12 points to 25,186.
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