Zomato's Share Rises Despite Poor Results. Read What Brokerages Say About It
Despite the online food delivery giant Zomato reporting a net loss of Rs 360 crore for the June quarter of 2021-22, its shares on August 11, 2021 at the Bombay Stock Exchange (BSE) were trading higher by 5 per cent at Rs 131.3 at 12.14 pm from today's open price of Rs 122. Several brokerages have given mixed ratings on its stock. Let's have a look at some of the comments from brokerage firms on Zomato's share.
Jeffries said that Zomato's delivery business was stable, the dining out segment was hit by the second wave of the Coronavirus pandemic. Year-on-year numbers of the company are "very strong" despite the impact of first wave of the pandemic.
The brokerage firm has given a "Buy" rating on Zomato's stock with the target price of Rs 175 per share.
Dolat Capital, another brokerage firm said that Zomato's food delivery business has shown growth, yet despite this, Zomato saw a lot contraction in its order segment during the first quarter of the current financial year.
"Zomato has attributed decline in contribution in the first quarter due to costlier business environment in the lockdown which we believe is partially might be on account of higher variable cost (fuel cost) and increase in overall delivery availability cost," said the brokerage firm while giving a "Sell" rating on its stock with a target price of Rs 90 per share.
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