New Delhi: The share price of Zomato has continued its upward trajectory, marking its sixth consecutive session of gains and reaching a new all-time high. Over the span of a month, Zomato’s shares have surged by more than 27%, contributing to a remarkable 61% increase in value since the beginning of the year. Looking back over the past twelve months, Zomato’s shares have soared by an impressive 274%.
The latest surge in Zomato’s share price follows a positive development from JM Financial, which has raised its target price for the stock, projecting a potential upside of over 32%. JM Financial, which maintains a ‘Buy’ rating on Zomato, has revised its target price to ₹260 per share from ₹200, citing the rapid growth of Blinkit, Zomato’s quick commerce business, as a key driver. JM Financial’s long-term target price for Zomato stands at ₹400 per share.
JM Financial views Zomato as a promising investment within the listed Internet sector, emphasizing its advantageous position to capitalize on the strong industry trends favoring hyperlocal delivery services. Additionally, Zomato’s robust balance sheet, boasting a net cash position of ₹12,000 crore as of December 2023, further reinforces its attractiveness to investors.
The brokerage firm values Zomato’s food delivery segment at approximately 50 times the pre-IND AS EV/EBITDA for March 2026, highlighting its diversified nature and efficient business model. JM Financial anticipates that Blinkit will intensify its expansion efforts in the near term, particularly focusing on expanding its dark-store network and enhancing product offerings.
Looking ahead, JM Financial expects Blinkit to accelerate its growth trajectory post break-even at Adjusted EBITDA levels by the first quarter of FY25, which is anticipated to drive exponential growth for the business in the near to medium term. While acknowledging that Blinkit’s profitability may initially lag behind the food delivery segment, JM Financial remains optimistic about its long-term prospects, valuing the business at 2.5 times the March 2026 Gross Order Value (GOV).
As a result of these positive developments, JM Financial has raised its estimates for Blinkit’s GOV for FY25 and FY26, foreseeing significant improvements in order volumes driven by increased market penetration and ordering frequencies. Ultimately, JM Financial’s bullish outlook on Zomato’s prospects has contributed to the continued momentum in its share price, which was trading at ₹199.25 apiece on the BSE at 11:05 am.
