Can Zomato become a multibagger?
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Can Zomato become a multibagger?
Zomato may turn into a multibagger, the first initiation of coverage shows.
The brokerage has a Buy rating on the stock with a target price of ₹175 apiece. Those at Ambit Capital said that Zomato’s Q2 revenue was better than expected, but came at cost with around 82\% QoQ increase in adjusted EBITDA losses. They see the growth to come at cost and could pushback profitability.
Why Zomato stock is falling?
“Zomato paved the way for a new era as the company gained huge value on listing due to its unique business model, being the first of its kind player and attracting hefty anchor books,” he added. The recent selling spree has led to a sharp fall in the market cap of Zomato, which had breached the mark of Rs 1 lakh crore.
Is Zomato a multi-Bagger story?
Prashanth Tapse VP Research at Mehta Equities says Zomato will be a tough bet for a “multibagger story” as the accumulated losses of the company has piled up and it only requires more capital to keep the business going.
Zomato share price has been bullish after making breakout at ₹ 138 and it may continue to scale further northward if the stock closes above ₹ 150 today, say experts. (Bloomberg) 2 min read . Updated: 14 Sep 2021, 12:30 PM IST Asit Manohar Zomato share price today climbed its new peak of ₹ 152.75 apiece.
Is Zomato in a duopoly market?
Navin Killa of UBS, who along with his team wrote the report on Zomato, said being in a duopoly market, the company is expected to deliver over 40 per cent revenue CAGR. NSE 8.83 \% has not just created history but also massive wealth for its IPO investors. The stock is up 82 per cent so far from the issue price.
Will Zomato continue to burn cash?
The topline and bottomline of Zomato improved due to the pandemic, the company claimed in its IPO prospectus. However, it remains a fact that the company is continuously burning cash. And, it may keep doing so, the company has indicated.