New Delhi [India], August 9 : Geojit Financial Services Ltd has put forward a ‘Buy’ rating for Zomato stocks, with expectations of a 22 per cent return on investments over a period of 12 months.
The buy recommendation by the financial services company came after Zomato for the first time reported quarterly profits. The company reporting profits led to strong interest in its stocks by investors as they rose over 10 per cent on a cumulative basis over the past two-odd sessions.
At the time of writing this report, the shares of the food aggregator and delivery company were 1.2 per cent lower from its previous day closing at Rs 92.3. Geojit pegs a target of Rs 122.
"The company’s dominant market presence, new initiatives and businesses, and sustained improvement in the operational metrics are expected to continue to drive growth and profitability,” Geojit said in a report.
The food delivery platform last week reported a consolidated net profit of Rs 2 crore for the April-June quarter of 2023 against a loss of Rs 186 crore in the same quarter last year, data showed. It reported a loss of Rs 189 crore in the January-March 2023 quarter.
Further, moving on to its revenue from operations, it was at Rs 2,416 crore in the June quarter, a 71 per cent against Rs 1,414 crore reported in the year-ago period.
July marked Zomato's completion of its second year as one of the new-age companies listed on the Indian stock exchanges.
Listed on July 23, 2021, the food aggregator's initial public offering was a success as it was subscribed 38.25 times. It made a stellar debut at a premium of 53 per cent.
Even though the company reported healthy gains on its listings on the stock exchanges back then, it could not capitalize on it later.
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