Zomato share price trades flat before Q2 results today. Is this a stock to buy?
Experts foresee Zomato’s stock price potentially reaching between ₹290 to ₹300 per share, provided that its support at ₹240 holds firm.
In today’s stock market activity, there was notable interest in Zomato’s share price at the beginning of the day on Tuesday. As the market awaited the Q2 results, Zomato’s shares started the day with a positive gap, opening at ₹267 each, and quickly reaching a peak of ₹270.90 per share shortly after the trading session commenced. Despite this initial surge, the stock couldn’t maintain its upward momentum and faced selling pressure following profit-taking actions. Analysts anticipate that Zomato will disclose strong revenue expansion and a significant enhancement in EBIDTA margins. The surge in Zomato’s share value is attributed to investors’ expectations of a surge in profit growth for the renowned online food delivery service provider.
Zomato’s Q2 2024 financial outlook was shared by Mahesh M Ojha, AVP—Research at Hensex Securities. He anticipates that Zomato will sustain its robust revenue growth along with enhancements in profitability. The forecast suggests a 69% YoY revenue surge and a 14% QoQ rise. Moreover, the consolidated EBITDA margin is expected to see a 99bps QoQ improvement, driven by profit enhancements in various business sectors. Ongoing efforts in the quick commerce domain are foreseen to further elevate Zomato’s overall performance.
Target price for Zomato’s stock analysis
In regards to the future performance of Zomato stocks, Sumeet Bagadia, the Executive Director at Choice Broking, emphasized that the critical support level for Zomato’s shares stands at ₹240 each. Shareholders are recommended to retain their holdings with a stop loss set at ₹240 for a short-term objective ranging between ₹290 to ₹300.
Sumeet Bagadia advised new investors to consider purchasing Zomato shares and gradually accumulate them during significant drops, setting a stop loss at ₹240. He recommended aiming for a short-term target price range of ₹290 to ₹300.
Mahesh M Ojha advised intraday traders to consider purchasing Zomato shares, suggesting a stop loss at ₹258 for those with a higher risk tolerance, aiming for an immediate target of ₹285.
