Zomato shares fall 6% on ESOP headache but target prices rise up to Rs 280. Should you buy, sell or hold?
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Shares of foodtech platform Zomato on Tuesday fell up to 6% to Rs 182.10 on BSE even as brokerages like CLSA, Jefferies, Bernstein and Elara raised target prices going up to Rs 280 per share following an impressive show in Q4 results. CLSA raised target price on Zomato to Rs 248, Bernstein to Rs 230, Jefferies Rs 230 while Elara Capital had the highest target at Rs 280. "We continue to favor Zomato on its strong moat in the food business, which may continue to post an adjusted EBITDA CAGR of 47% in FY24-26E, and superior execution for Blinkit (market leadership), helped by better customer experience versus peers (on-time delivery, better product assortments)," Elara Capital said. Analysts were impressed again with the growth in Blinkit as the quick commerce platform's GOV grew by a solid 13.7% QoQ driven by a 17% QoQ in orders offset by 3% QoQ decline in AOV. The announcement to increase dark stores count to 1,000 by the end...