Stock market today: Zomato‘s share price has been on an uptrend for the last one year. After bottoming out at around ₹50 apiece around a year ago, Zomato share has remained an ideal ‘buy-on-dips’ stock for stock market investors. Zomato share price on March 26 opened upside and went on to touch an intraday high of ₹183.40 per share level on NSE, logging over 250 per cent rise in the last one year. While climbing to its intraday high during Tuesday deals, Zomato share price today touched a new high as well.
According to stock market experts, the market is expecting strong quarterly numbers next month from the online food app company. They said that demand for online food has touched the pre-COVID level, and due to the beginning of IPL 2024, Zomato’s business is expected to gain momentum as people are likely to rely on online food orders to enjoy the IPL matches. They also added that Blinkit, the quick commerce arm of Zomato, has raised its charges by more than 200 per cent, which would also enable the online food delivery company to muster more revenue in its business, where it enjoys almost a monopoly. They said that Zomato share has given a breakout at ₹175 on a decisive basis and the stock may go up to ₹247 apiece if it breaches its current hurdle placed at ₹204 apiece.
IPL 2024 in focus
On how IPL 2024 has fueled the online food delivery business of Zomato, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Whenever a big sports tournament gets organised anywhere in the world, it works as a trigger for various other businesses. Today, IPL 2024 is doing the same for Zomato. To enjoy uninterrupted IPL matches, people are expected to increase their normal number of online food orders. As Zomato has almost a monopoly in the online food delivery business, the market is expecting better numbers from Zomato next month. Apart from this, its quick online arm, Blinkit has raised its charges from ₹11 to ₹35, which is more than 200 per cent. So, some addition in the balance sheet of Zomato is expected to trickle down from this hike in charges as well.”
Avinash Gorakshkar added that there is a trend reversal in the online food delivery demand, and today it has touched the pre-COVID level. So, the market has gone berserk on Zomato shares. However, they need to realise that the core business of the company is still bleeding. It is the other income that has enabled the company to contain its losses.
Zomato share price target
Expecting more rally in Zomato share price, Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher said, “Zomato share price today gave a fresh breakout on chart pattern at ₹175 on a decisive basis. The stock has a strong base placed at ₹154 apiece level. So, those who have Zomato shares in their stock portfolio are advised to maintain a strict stop loss at ₹154 per share level. Zomato share price is facing a hurdle at ₹204 apiece level. On breaching this resistance, Zomato share price may go up to ₹247 per share mark in the medium term.”
On the suggestion to fresh investors, the analyst at Prabhudas Lilladher said, “Fresh investors are advised to maintain a buy-on-dips strategy maintaining strict stop loss at ₹154. They are advised to hold Zomato shares for the medium-term target of ₹247 per share.”
