Zomato stock price target (Image source: iStockphoto)
Zomato is aggressively expanding through its quick commerce business, flashes. Blinkit is rapidly increasing its global reach, and is expected to reach 44 cities by mid-2024, up from just 25 in March. The expansion includes major Tier 2 cities such as HaridwarJodhpur, Mohali and Rohtak, all close to current hubs like Delhi NCR and Jaipur. This strong geographic push is part of a broader goal of attracting new users and optimizing the warehouse network.
In comparison, competitors Zepto and BBNow operate in 13 and 23 cities, respectively, making Blinkit’s footprint substantially larger. This growth into new markets increases competitive intensity in the q-commerce space, which could lead to pricing conflicts in certain cities as rivals compete for market share.
While these innovations may increase operational complexity, they are expected to help Blinkit increase its share of customer spending. However, these measures are still in the pilot phase and it is not clear whether they will be implemented across the board.
Zomato stock price target
With a current market price of Rs 291, experts have increased Zomato’s fair value (FV) to Rs 315, citing the company’s potential development trajectory and strategic plans. Given Blinkit’s rapid growth and innovative initiatives, analysts have raised the gross merchandise value (GMV) compound annual growth rate (CAGR) prediction to 81% for fiscal year 2024-27, up from 70%. %. According to the Kotak Securities report, higher sales and strategic developments resulted in a revised fair value of Rs 315 per share.
While the competitive landscape remains challenging, Blinkit’s rapid expansion and Zomato’s long-term goals position the company for continued success. Analysts offer a “Buy” rating, and the stock is expected to return over 15% over the next 12 months.
On Friday, Zomato shares closed at Rs 278.25. The stock’s 52-week high and 52-week low are Rs 298.20 and Rs 99.30 respectively. As per BSE analysis, the stock has given massive returns of 178.03 per cent in the last one year.
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