On April 25th, a block deal took place for Zomato where 1.5 crore shares, which accounts for 0.2% equity and is valued at Rs 88.2 crore, were traded at an average price of Rs 59 per share
Zomato experienced an 8% increase in its share price during morning trading as a result of a significant block deal where 1.5 crore shares, equivalent to 0.2% of the equity and valued at Rs 88.2 crore, were exchanged at an average price of Rs 59 per share. The identities of the buyers and sellers remain unknown at this time.
In recent news, Citi, a global investment bank, issued a "buy" rating for Zomato, with a target price of Rs 76, which represents a potential upside of 35% from the current market levels. According to Citi, the introduction of monetization in the dining-out segment by Zomato and Swiggy has yielded positive results in the medium term. However, Jain, a representative of Citi, added that from a purely commercial standpoint, the current contribution is small and any growth in this area would not have a significant impact.
Jain further noted that the impact of COVID-19 on consumer behavior has been seen over the past few quarters and has already been taken into account in the current share price. Although Jain does not view this as a significant factor to consider from an investment standpoint, he believes that even small contributions can add up.
Motilal Oswal, a domestic brokerage firm, initiated coverage on Zomato's stock last week with a "buy" rating and a target price of Rs 70. The brokerage firm expects strong growth and anticipates the company turning profitable over FY25, despite elevated competitive intensity.