Well, Its already providing huge returns. During listing the stock closed at Rs 125.85 on BSE, up 65.59 percent with respect to the issue price, while on NSE, the stock closed at Rs 125.30, up 64.87 percent against the stock’s issue price of Rs 76.Is Zomato multibagger stock? is eventually become true if they keep on posting good returns.
Is Zomato multibagger stock?
Lets understand Key points from recent quarter results:
As per Nikhil Choudhary and Parth Ghiya of Nuvama Institutional Equities, “”Zomato has shown stellar growth in the last few years driven by low penetration. Going ahead, we expect Zomato to deliver strong growth over the next few years as well, driven by order frequency and increase in customer base. Zomato’s path to profitability could be quicker than anticipated with improving contribution margins as the management is not dialling down on growth ambition,”
Zomato Share current Price:
As per Aug 2 2024 , its reached 278 rs. which is already double of listing price in NSE. And its all time high.
Zomato quarterly Result:
On August 1, Zomato reported a net profit of Rs 253 crore for Q1FY25, which is very sharp rise from the Rs 2-crore net profit reported last year.
Revenue for the restaurant aggregator increased 74 per cent year-on-year (Y-o-Y) to Rs 4,206 crore.
The way zomato increasing its profit, is a answer to our question Will Zomato be a multibagger stock in the future?.
Zomato Target Price:
Most of the brokerage companies are bullish on the company. Below are the few well known brokerage firm news.
Brokerage firm Nuvama Wealth made a buy call on the stock and target price is 285 Rs. Nuvama pointed out that Zomato continues to deliver on its promise of strong growth and improved profitability.
Brokerage firm Motilal Oswal Financial Services set a target price of ₹300, implying a 28 per cent upside potential.
Motilal said Zomato’s food delivery business is stable, and Blinkit offers a generational opportunity to participate in the disruption of industries such as retail, grocery and e-commerce.
Kotak Institutional Equities also set their target price as 270.
What is District App of Zomato?
Zomato is willing launch booking app called District app which can be competition to Bookmyshow. Zomato is now trying to get into movie booking and many other booking areas by which its intention is to expand their business in to other areas.
Zomato Fundamentals :
Company is Launched in 2010, Its a technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs.End user can use their platform to search restaurants, and can order food home or dine later options.
After which customer can also provide reviews related to food or delivery. Customer can also report issue using photo, video. Company working environment is also good.Recently they have also acquired blinkit ( which is India’s largest and most convenient hyper-local delivery company).The Zomato management guided for 20 per cent-plus growth in the short term in Food Delivery (FD) business and set a target to increase Blinkit’s dark store count from 639 in June quarter to 2,000 by end-CY26.
As per screener.com , “As of December 31, 2020, Zomato has established a strong footprint across 23 countries with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an average monthly food order of 10.7 million customers.”
- Current Share Price: 278
- Market Cap₹ 2,32,062 Cr.
- Stock P/E 386
- Net profit June quarter 253Cr
- Year or Year Net profit of 602 Cr
If we check balance sheet , we can see Reserves also getting increased year on Year which is a good sign.
Conclusion:
Answer for the query “Is Zomato multibagger stock?” is Yes, its already multibagger from its listing price. Company is doing good in their business. More and More people are using the app and getting involved with the business. Its showing us potential of a much more profits for sure.
Note: This is not buy/sell call. Kindly take advice of your financial advisor before investing.
FAQ:
1.Will Zomato shares go up?
By looking at June quarter results of 2024, and also many brokerage firms call on this, look like we can see good rally ahead.
2.What is the future of Zomato?
Future growth can be seen shining , based on results and also based on acquisition which they made by acquiring blinkit. Since both business is doing good , we can predict good future ahead.
3. Who is owner of Zomato?
Deepinder Goyal is our Founder and is the Managing Director and the Chief Executive Officer of our Company. He holds an integrated master’s degree of technology in mathematics and computing from the Indian Institute of Technology, Delhi.
4. Is Zomato a multibagger?
Yes . Its a multibagger. Please check above article.