Zomato stock climbs 15% amid strong market rally

Shares of Zomato rose over 15 per cent amid a strong market rally today. The large cap stock gained 15.31 per cent to Rs 71.55 against the previous close of Rs 62.05 on BSE.  Later, the stock closed 14.75 per cent higher at Rs 71.20.

Zomato stock has gained 12.43 per cent in the last two days. Zomato shares stand higher than 5-day and 20-day moving averages but lower than 50-day, 100-day and 200-day moving averages.

The share has lost 49.78 per cent in 2022. Market cap of the firm rose to Rs 55,430 crore on BSE. Total 89.70 lakh shares of the firm changed hands amounting to a turnover of Rs 60.67 crore.

The stock hit a 52-week high of Rs 169.10 on November 16, 2021 and a 52-week low of Rs 50.35 on May 11, 2022. The firm reported a loss of Rs 360 crore in the fourth quarter ended March 31, 2022 against net loss of Rs 134 crore in the year-ago period.

Zomato's consolidated revenue from operations rose 75 per cent to Rs 1,212 crore as against Rs 692 crore in the corresponding quarter of last fiscal.

However, brokerages were bullish on the prospects of the Zomato stock post Q4 earnings. UBS gave a buy call on the Zomato stock with a target price of Rs 130.

The financial services firm said Q4 was a healthy one despite reopening headwinds. The firm's disclosures have also improved this quarter, which is a positive, the brokerage said. It believes growth drivers will continue to remain strong for the company.

Morgan Stanley was overweight on the stock with a target price of Rs 135 after the food delivery firm announced its Q4 earnings. Q4 numbers were in line, with improved transparency on segment disclosures, the brokerage said.

The firm gave a better outlook for Q1 of this fiscal and planned a tighter framework around capital allocation. With these results, the company is moving in the right direction although it needs consistent execution, said the financial services firm.

Meanwhile, Sensex rose 1,041 points to 55,925 and Nifty ended 308 points higher at 16,661 in today's session.