Zomato Stock Soars 19% to New High on Record Q1 PAT; CLSA Boosts Target Price to ₹350

 

Zomato Stock Soars 19% to New High on Record Q1 PAT; CLSA Boosts Target Price to ₹350

                 

                        

 After reporting a substantial increase in profit after tax (PAT) for the June quarter, Zomato's shares jumped 19% to a record high of ₹279 on Friday. This impressive performance led brokerages like CLSA to raise their target price to ₹350.

 The company achieved a PAT of ₹253 crore, a significant leap from the ₹2 crore recorded in the same period last year.

 During this quarter, revenue from operations surged by 74% to ₹4,206 crore. Zomato’s consistent over-delivery on revenue growth has once again caught the attention of analysts, prompting them to revise their target prices for the stock. They are now predicting a potential increase of up to 49.5% in Zomato’s share price over the next year. Analysts believe that Zomato is on a strong growth path with considerable potential for profitability expansion.

 “Zomato has shown exceptional growth in recent years due to its initially low market penetration. In the future, we expect the company to maintain strong growth thanks to increased order frequency and a larger customer base. The path to profitability for Zomato could be accelerated by improved contribution margins, as management continues to focus on growth,” analysts commented.

 Zomato's shares jumped 19%