Shares of Zomato have given a phenomenal return of over 151 percent in the last one year and are trading close to their 52-week high of Rs 298.2. Jefferies sees a bullish momentum as it maintained its buy rating on the counter with a target of Rs 335, which is more than 17 percent potential.
A call to buy was issued alongside the food conglomerate revealing the ‘Regional’ operating plan – a platform where the company aims to expand its services beyond food delivery services and quick trade (QC).
Essentially the app will integrate all ‘going out’ services including, dining, movies, sports tickets, live concerts, shopping, and accommodation, creating a single customer experience.
The global retailer said Zomato has launched a ‘regional’ operating system, a one-stop shop, which is a management theme for the next decade.
Starting with food and ticketing, new use cases will emerge, it added.
Also, the brokerage pin pointed out that although the Industry is still young as the current TAM may be limited, but that’s how food delivery and QC was until a while ago.
The market is not easy to find, which means there is enough opportunity – ask the fans of Coldplay and Diljit Dosanjh in India who are still trying their luck to get a pass, it added.
Zomato QIP
The company’s QIP closed the previous day at an issue price of Rs 252.62, a discount of 11.7 percent from the previous close.
Zomato’s pricing performance
On a year-to-date basis the stock is up 131 percent.
