Velocity Idea : Zomato Ltd For Target Rs. 360 - Motilal Oswal Wealth Management
Zomato Ltd
Key Triggers:
* Zomato last month got included in Sensex, a first for new-age firms, as its food delivery business stabilizes. Aggressive Blinkit expansion continues, focusing on deeper presence, & new product categories.
* Zomato raised Rs. 8,500cr via QIP to invest in Blinkit for expanding its dark store network, targeting 1,000 stores by FY25 to solidify its leadership in quick commerce.
* For 2HFY25, we expect revenue/ adj. EBITDA to grow by 68.5%/123.0% YoY, driven by a steady increase in food delivery margins, and quick commerce business nearing breakeven.
Technical View:
* Stock has given a consolidation breakout at life time highs and is perfectly respecting its 100 DEMA.
* ADX Line is rising which suggest the bullish trend has strength to support it.
Buy Zomato Ltd CMP 298 SL 270 Target 360
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SEBI Registration number is INH000000412
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