Zomato Ltd. share price is trading up 3.46% at ₹296.15 on Thursday at the time of writing.
The latest surge in the food-delivery company’s share price, even as Nifty 50 slumps 0.4%, comes amid a string of favorable events.
The company last Friday annonced it had raised a whopping ₹8,500 Crore from investors via a qualified institutional placement in what was its first significant fundraising event since going public roughly three years ago.
There is also wider momentum in the industry, with recently-listed food-delivery peer Swiggy Ltd’s shares trading over 6% higher at ₹549.80.
How high can Zomato go? With today’s surge bringing Zomato to all-time highs, it is also trading in line with the average analyst estimates for the stock price of around ₹300.
The most bullish 1-year target on Zomato stock right now is from Axis Direct at ₹350.
No major brokerage has a Sell rating on the stock at this time.
Some analysts have expressed concerns over detachment with fundamentals in Zomato’s meteoric rise from below ₹50 levels that the stock had to contest with a little over two years ago.
Zomato’s current price to earnings ratio is at 386 and the stock is trading at a book value of above 24.
It is worth noting that Zomato is mostly priced by analysts as among “growth stocks” that are expected to make major headways in the coming decades owing to massive consumer demand shifts or ability to serve new markets.
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