Zomato shares hit new record high; Here are the reasons pushing the stock up

Shares of Zomato Ltd hit an all-time high during the trading session on Tuesday as the market resumed for the last trading week of FY24, after the festival of Holi. The stock rose more than 1.35 per cent to Rs 176.45 on Tuesday, commanding a total market capitalization of more than 1.55 lakh crore.

Blinkit, the quick-commerce arm of Zomato, has hiked its delivery charges by Rs 11-35 in certain areas in the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR). Higher delivery charges are expected to boost Zomato's topline and profitability, believe market experts.

"We hit our all time high orders, OPM (orders per minute), and almost every other metric on the board! Thank you for choosing us for your Holi needs," said  Albinder Dhindsa, CEO of Blinkit. Gulal (Holi colors), water balloons, white T-shirts, liquid detergents and sweets were among the most ordered things on the all quick commerce platforms.

Zomato is also likely to reap benefits of Indian premier league (IPL) in the first quarter of FY25, other than the festive demand. New-age internet stocks offer investors an opportunity to gain exposure to India's digital transformation and capitalize on the growth potential of the technology sector, say experts.

Brokerage firm Bernstein has an 'outperform' rating on Zomato with a target price of Rs 200 on the stock, while domestic broker Kotak Institutional Equities pegs the stock at Rs 190 with a 'buy' rating. JM Financial also has a 'buy' rating on Zomato, with a target price of Rs 200.