Zomato shares have continued their upward momentum for the sixth consecutive trading day, touching a new peak backed by growing optimism from analysts. The food delivery giant witnessed gains of over 1.5% yesterday to reach Rs. 199.75 per share on the BSE, setting a fresh record high.
This optimistic investor sentiment comes following a bullish outlook from JM Financial. The brokerage firm raised its target price on Zomato stock from Rs. 200 to Rs. 260 while reiterating a ‘Buy' rating. JM Financial's three-year target for Zomato stands at Rs. 400 per share, implying significant upside potential of over 30%.
What has driven such a rosy outlook? The analysts cite robust growth at Zomato's quick commerce business – Blinkit. Since acquiring the grocery startup last year, Zomato has been aggressively expanding Blinkit's hyperlocal delivery footprint across the country. JM Financial expects this to emerge as a key growth driver over the coming years.
Zomato is seen leveraging Blinkit's infrastructure and delivery fleet to benefit from rising demand for quick commerce and last-mile delivery in India's fast-growing online grocery market. Its integrated food and grocery model provides a unique one-stop solution to address multiple customer needs through a single app.
Investors will watch Zomato's progress in scaling up Blinkit operations and monetizing this combined service portfolio. As it focuses on establishing leadership in food delivery while capitalizing on the hyperlocal opportunity, Zomato stock could have more room to run if it succeeds on its vision.
