Zomato Share Price Expected to 50% Increases Because This Reasons

Analysts predict notable increase in Zomato's shares, which are already rising.

Rising by 19%, Zomato's stock price now ranks highest among all others at Rs 278.45 per share. As financial analysts point out, great performance and a bright future drive this amazing rise.

Why is Zomato's Share increasing?

Excellent Earnings Growth: Zomato's June quarter (Q1) results have been outstanding, which has analysts raising their target prices. Over the next year, they currently project a 49.5% rise.

Analysts think Zomato is on a high growth trajectory with lots of space for profitability increase. On its earnings development, the company has constantly exceeded expectations.

Also Read:-Zomato to launch new app 'District' to capture its 'going-out' market

Knowledgeable Views

Zomato has been rated as a "Buy," by Nikhil Choudhary and Parth Ghiya from Nuvama Institutional Equities, which has raised their target price to Rs 285 from Rs 245. Given rising order frequency and a growing customer base, they expect Zomato to continue showing great expansion.

Driven by a planned increase in store count, Abhishek Bhandari and Krish Beriwal from Nomura project Zomato's quick commerce vertical, Blinkit, will grow by 100–110% in FY25–26.

Highlights for Quarterly Performance

Up from Rs 2 crore last year, Zomato stated a net profit of Rs 253 crore for Q1FY25.

Revenue Growth: To Rs 4, 206 crore, the company's revenue increased by almost 74% year over year.

 All of the segments—Food Delivery, Hyperpure, Quick Commerce, and Going Out—saw sequential increase.

Looking Forward

Food Delivery: Average monthly transacting users (MTU) rose to 20.3 million while the segment's gross order value (GOV) grew 27% year-on-year to Rs 9,260 crore.

Targeting 1,000 stores by FY25, Zomato wants Blinkit to have 2,000 stores by FY26 from 524. This development is expected to propel notable increase in the fast trade sector.

Target Prices for Analyzers

CLSA: Rs 350

UBS: Rs 260

Citi: Rs 280

Goldman Sachs: Rs 280

Bernstein: Rs 275

Morgan Stanley: Rs 278

Zomato is a stock to keep an eye on despite general market trends since of its strategic expansion plans and good performance. Future of the business is still bright for analysts, who project significant expansion in the next years. Watch this space to see how Zomato keeps shattering records and broadening its market share.

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