Zomato touches issue price of Rs 76 per share

(Image credit: Reuters)

Shares of Zomato touched the issue price level of Rs 76 apiece on Thursday (June 8) for the first time since June 1, 2022. At the time of writing this report, the stock traded at Rs 75.90 on the BSE, up nearly 2 per cent. Towards the end of the session, the stock hit a high of Rs 76.30 on the BSE. Zomato made an impressive stock market debut on July 23, 2021, as the stock was listed on the National Stock Exchange (NSE) at Rs 116 per share, a 53 per cent premium on its final offer price of Rs 76. On the Bombay Stock Exchange (BSE), it opened at Rs 115, a premium of over 51 per cent.

On Thursday, the stock closed over 1 per cent higher at Rs 75.65 apiece. Shares of Zomato have gained for the fifth consecutive session. In the five trading sessions, the shares of the company have gained over 11 per cent. The scrip has also hit a 52-week high of Rs 76.35 apiece.

Brokerages' view

Analysts at Emkay Global believe that gross order value and monthly transacting users will drive Zomato's growth. Thus, the brokerage has a 'buy' call on the stock with a target price of Rs 90 a share.

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Jefferies is bullish on Zomato with a long-term view and has given a buy call with a target of Rs 100 apiece.

"Zomato is a play on the growing food services industry in India as well as the increasing adoption of digital commerce. With only 20 million monthly transacting users currently, Zomato has a long runway for customer acquisition and revenue growth, although this may come at the cost of near-term profitability. The platform also has the option of expanding into other adjacent categories such as grocery, etc.," the brokerage said in its report.

Zomato share price history

So far in 2023, Zomato stock has gained over 25 per cent, a sharp rise against the benchmark's rise of over 2 per cent, and in the past one month, the scrip has risen nearly 18 per cent against the Nifty50's rise of over 2 per cent.

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