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- Zomato Gave Up To 85% Return, JM Financial, UBS Give Buy Rating, Target Of Rs 165 170 In 1 Year
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Those who invest money in online food delivery company Zomato have turned silver. Shares of Zomato gave up to 85% return after listing. This momentum will continue in the future as well. The brokerage house has given a target of Rs 165-170 for Zomato shares in the next one year. The market capitalization of the company has crossed 1 lakh crore.
JM Financial, UBS give buy rating to Zomato
Domestic brokerage firm JM Financial has given a buy rating for Zomato with a target of Rs 170 per share for 12 months. Apart from this, UBS has also given a target of Rs 165 on the stock. According to the brokerage firm, the number of active users in India is 10 million. This brings a total of 5-7 crore online orders. Whereas 50-550 million orders come in China and 10-15 million orders in America.
Zomato will not give more than 17-20% profit in 1 year: Brokerage firm
The brokerage firm, which has valued the share purchase after listing, feels that Zomato’s stock will not give more than 17-20% profit in the next one year from the closing price of Rs 141 on July 29. Investor Zomato’s valuation is slightly higher than global partners, but the growth potential is good and justifies the premium.
Strong balance sheet can benefit
The Swiss brokerage believes that Zomato’s revenue will give a Compound Annual Growth Rate (CAGR) of more than 40%. This will make it one of the fastest growing internet companies in the region. according to redseerFood service business in India is expected to be $110 billion (Rs 8.18 lakh crore) by calendar year 2025. Experts say that, due to the strong balance sheet, Zomate can become the leading company to take advantage of this.
Group level revenue expected to grow by 46% in 5 years
JM Financial said in a report that, we also expect a strong growth in the hyperpure business. Hyperpure is Zomato’s supply platform for restaurants. JM Financial forecasts 46% group level revenue growth for Zomato in 5 years. According to the report, taking advantage of other platforms will also boost growth.
Shares of Zomato were listed on BSE at Rs 115 per share, which is trading at Rs 135.90 with a decline of 4.09% at 1.40 am today.