Zomato share price extends gains for sixth straight session to a record high

Zomato share price rose over a percent in early trade on Friday, extending gains for the sixth straight session. Zomato shares gained as much as 1.49% to a fresh record high of ₹199.75 apiece on the BSE.

Today’s gains in Zomato share price came after JM Financial raised the target price on the stock and sees an upside potential of over 32%.

JM Financial has a ‘Buy’ rating on the stock and raised Zomato share price target to ₹260 per share from ₹200 earlier, citing a meteoric rise of Blinkit, its quick commerce business which continues to grow exponentially. 

Its three-year target price for Zomato stands at ₹400 per share.

Zomato continues to be one of JM Financial’s preferred picks in the listed Internet space as it believes the company is well-positioned to benefit from robust industry tailwinds for the hyperlocal delivery businesses. 

Its balance sheet also remains strong with net cash of ₹12,000 crore as of December 2023.

The brokerage firm believes Blinkit in the near term will increase its investments in the expansion of the dark-store network, retail category addition as well as product depth penetration.

Accordingly, it raised Blinkit’s FY25 and FY26 GOV (Gross Order Value) estimates by 15% and 41%, as it expects a robust improvement in order volumes due to these investments.