Zomato share bleeds 5% as Jefferies downgrades to 'Hold', slashes target

Zomato's share price dropped after Jefferies, a financial services firm based in New York, downgraded the stock to 'Hold'

Zomato share price: Food aggregator Zomato’s shares bled on Tuesday, as the stock plunged up to 5 per cent to hit an intraday low of Rs 251.40 per share. 

 

Zomato’s share price, however, settled 4.82 per cent lower at Rs 251.90 per share.

 

In comparison, the BSE Sensex settled 0.30 per cent higher at 78,199.11 levels. Notably, the Zomato stock was the top Sensex loser on Tuesday.

 

The fall in Zomato’s share price came after Jefferies downgraded the stock to ‘hold’, according to reports.

 

The brokerage also reduced its target price for Zomato from Rs 335 to Rs 275, citing increased competition and discounting pressures affecting profitability.

 

However, international brokerage firm Morgan Stanley upheld its ‘overweight’ rating on Zomato, setting a target price of Rs 355.

 

Meanwhile, Bernstein has included Zomato among its top stock picks in its Indian strategy, according to reports.

 

Zomato financial performance

 

Zomato’s profit after tax (PAT) zoomed five times (5x) to Rs 176 crore in Q2FY25, against Rs 36 crore during the same period a year ago (Q2FY24).

 

However, PAT was down 30 per cent from Rs 253 crore in the previous quarter of the same financial year (Q1FY25).

 

The food aggregator’s revenue from operations (top line) surged 69 per cent year-on-year (Y-o-Y) to Rs 4,799 crore in Q2FY25, from Rs 2,848 crore in Q2FY24.  

 

Zomato share price history

 

Zomato share has fallen over 9 per cent in the last 5 trading sessions, while it dropped over 14 per cent in the past month. However, the share almost doubled investor wealth, rising about 90 per cent in one year. 

 

About Zomato 

 

Founded in 2010, Zomato Limited is a major player in the online food service industry, offering services such as food delivery, dining-out options, and loyalty programmes. The market capitalisation of Zomato is Rs 2,45,456.67 crore, according to BSE.

 

The 52-week high of Zomato share is Rs 304.50, while its 52-week low is Rs 121.70 apiece. 

 

At 10:30 AM, Zomato share price was trading 4.82 per cent lower at Rs 251.90 per share. In comparison, BSE Sensex was trading 0.31 per cent higher at 78,206.32 levels.