Zomato shares inflation nearly 8% as JPMorgan raises target price to Rs 340

Shares of foodtech major ZomatoZomato Datalabs_in-article-icon surged 7.7% on BSE today (September 5) to hit an intraday high of Rs 261.50 after brokerage firm JP Morgan raised the target price of the stock to Rs 340 from Rs 208. Went.
This is the second highest target price for Zomato, after CLSA’s earlier revision of Rs 353 per share, where it had maintained an “overweight” rating on the stock.
At 11:57 am, the stock was trading at Rs 254.75 on the BSE, up 4.9% from the previous day’s close. JPMorgan’s revised target price indicates 40% upside from the stock’s last closing price of Rs 242 per share.
The brokerage attributed its bullish outlook to Zomato’s expansion of Blinkit, which has been successfully scaled up across all major metros after demonstrating its feasibility in the NCR region.
The brokerage estimates that Blinkit’s scale will significantly boost monetization through channel margins and advertising revenues. Additionally, improved store-level economics are expected to further enhance the company’s EBITDA outlook.
Meanwhile, CLSA said Zomato-owned Blinkit will benefit the most from this accelerated commerce boom. It expects Blinkit to turn EBITDA and net profit positive by FY2015.
Brokerages are positive on the company’s performance after the Deepinder Goyal-led business reported quarter-on-quarter profit growth. In Q1 FY25, its net profit increased to Rs 253 crore from Rs 2 crore in the year-ago quarter, as Blinkit continued to show improvement in its financial performance.