Zomato’s shares are rising even when brokers have mixed reviews about it
Despite online food delivery giant Zomato reporting a net loss of Rs 360 crore for the 2021-22 quarter of June, its shares traded 5 percent higher on the Bombay Stock Exchange (BSE) on August 11, 2021 against Rs 131.3 at 12:14 p.m. as of today’s open price of Rs 122. Several brokers have given mixed reviews on the stock. Let’s take a look at some comments from brokerage firms about Zomato’s stock.
Jeffries said Zomato’s delivery business was stable and the dining out segment was hit by the second wave of the Coronavirus pandemic. The company’s year-over-year figures are “very strong” despite the impact of the first wave of the pandemic.
The brokerage firm has issued a “Buy” rating on Zomato’s shares with a target price of Rs 175 per share.
Dolat Capital, another brokerage firm, said Zomato’s delivery business has shown growth, but despite this, Zomato saw significant contraction in its order segment during the first quarter of its current fiscal year.
Zomato has attributed a decline in Q1 contribution due to the more expensive business environment in the lockdown, which we believe is due in part to higher variable costs (fuel costs) and an increase in the total cost of supply availability. , the brokerage firm said while giving a “Sell” rating on its share with a target price of Rs 90 per share.
