Zomato stock price up 112% in 2024; should investors buy now?

Global brokerage firm Nomura has increased its target price for Zomato to ₹280 from ₹225 while maintaining a ‘buy’ recommendation. This new target suggests a potential upside of over 9 percent. This comes after strong quarterly results for Q1FY25.

Nomura highlighted Zomato’s significant growth potential and improving profitability in both its food delivery (FD) and quick commerce (Blinkit) businesses. The brokerage stated, “We note that Zomato’s high growth path with improving profitability has significant room to go in both the FD (food delivery) and Q-commerce (Blinkit) businesses. We raise our TP to INR280 (continues to be based on DCF) factoring in higher long-term growth in Blinkit. We raise FY25-26F EBITDA by 26-60 percent.”