Stocks to Buy: The stock market saw a good rally on Tuesday (June 25). The benchmark indices settled with a gain of about one percent. In this rise, the stock of app-based food delivery app Zomato also saw a good rise. The stock closed with a gain of about 2 percent. The company’s growth has been strong in the FY24 annual report. Looking at the better outlook, global brokerages are bullish on the stock. In the last one year, this stock has registered a strong rally and jumped more than 170 percent.
UBS has maintained a buy recommendation on Zomato. Also, the target price per share has been kept at Rs 250. On June 25, 2024, the share price closed at Rs 202. In this way, a strong jump of about 24 percent can be seen in the stock from the current price. CLSA has recommended buying Zomato with a target of 248.
Zomato’s growth has been strong in the last one year. The stock has jumped more than 170 percent in a year. The stock has jumped 58 percent in 6 months and 62 percent so far in 2024. On June 25, 2024, the stock jumped 1.79 percent to settle at 202.40.
The brokerage says that Zomato’s growth has been faster than Swiggy. According to the annual report for FY24 of investment firm Prosus, Swiggy’s total gross order value (GOV) has grown by 26% (YoY). This is less than the company’s growth of 36 percent in the same period last year. Swiggy’s total revenue growth was 24 per cent (YoY), while Zomato’s adjusted revenue growth was 55.9% (YoY). Swiggy’s trading loss reduced to $158 million during FY24. While the company recorded a positive EBITDA of $5 m during this period.
