Zomato Share Price Hits Life High On Bernstein's Positive Outlook Post Swiggy Result

Zomato Ltd.'s share price rose for a second consecutive session on Thursday, to hit its lifetime high after Bernstein said the stock was its top pick following an analysis of Swiggy and the Deepinder Goyal-led food delivery platform.

The report came in after Swiggy reported its earnings for the September quarter. The brokerage does not have Swiggy in its coverage.

It has an 'outperform' on Zomato with target price of Rs 335, implying 20% potential upside.

Citing Swiggy management it said that gross order value in food delivery for the industry is likely to grow at 18-22% annually, with steady state margins at 5%. "Relative market share was steady with Zomato at 57.6% share," it noted.

Swiggy's share also hit its highest since listing on Thursday with intraday gains of more than 11%. Since its closing price on listing day, the stock has gained 23.6%. During the same time, Zomato has added 17%.

The scrip rose as much as 6.4% to Rs 304.65 apiece, the highest level. It pared gains to trade 5.9% higher at Rs 303.05 apiece, as of 11:45 a.m. This compares to a 0.5% decline in the NSE Nifty 50.

It has risen 144% on a year-to-date basis. Total traded volume so far in the day stood at 2.1 times its 30-day average. The relative strength index was at 68.69.

Out of 26 analysts tracking the company, 24 maintain a 'buy' rating, and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 0.4%.