Zomato‘s shares surged by 7.6% on the BSE, reaching an intraday high of Rs 261.50, following JPMorgan‘s upgrade of the stock’s target price to Rs 340 from Rs 208, maintaining an overweight rating. The investment bank highlighted Zomato’s leadership in the rapid retail consumer transformation through its Quick Commerce model, which is focused on convenience. After proving successful in the NCR, Zomato is expanding its presence across all major metros, positioning itself to drive monetization through channel margins and advertising revenue. This expansion is expected to lead the disruption in modern trade and e-commerce.
JPMorgan increased its forecasts for Zomato’s financial years 2025-2027 by 15-41%. Zomato has also broadened its “Going Out” business by integrating its core dining services with a new ticketing service. In August, Zomato acquired the events and movie ticketing business from One97 Communications-operated Paytm, which included Orbgen Technologies Private Limited (OTPL) and Wasteland Entertainment Private Limited (WEPL), now fully owned subsidiaries of Zomato. For the quarter ending June 30, 2024, Zomato reported a significant increase in its consolidated net profit, reaching Rs 253 crore year-on-year. Blinkit, Zomato’s quick commerce division, saw its revenues jump 145% year-on-year to Rs 942 crore, with an adjusted EBITDA of Rs -3 crore for the same period. The gross order value (GOV) across Zomato’s B2C segments—including food delivery, quick commerce, and “Going Out” services—rose 53% year-on-year to Rs 15,455 crore. Zomato’s shares have seen a remarkable 160% increase over the past year and a 105% rise year-to-date.