Zomato Shares May Surge to ₹250, Predicts UBS, Citing 'Underappreciated' Growth and Margin Potential

In a bullish outlook for India’s leading food delivery platform, Zomato Ltd., renowned brokerage firm UBS has forecasted that the company’s shares could skyrocket to ₹250 within the next 12 months. This optimistic projection reflects UBS’s belief in Zomato’s underappreciated growth prospects and margin potential.

Despite UBS’s bullish stance, their target price of ₹250 falls short of the highest estimates on the Street. Competing brokerage firms such as ICICI Securities and JM Financial have set even loftier targets for Zomato’s shares, pegging them at ₹300 and ₹260, respectively.

Zomato has emerged as a dominant player in the fiercely competitive food delivery industry in India, leveraging technology and innovation to capture a significant market share. The company’s ability to adapt to evolving consumer preferences and its aggressive expansion strategies have contributed to its rapid growth trajectory.

Analysts tracking Zomato’s performance have largely maintained a positive outlook on the stock, with 24 out of 28 analysts endorsing a “buy” recommendation. However, it’s worth noting that four analysts have adopted a more cautious stance, issuing a “sell” rating on Zomato’s shares.

The divergence in analyst opinions underscores the varying perspectives on Zomato’s future prospects and the inherent volatility in the stock market. Investors are closely monitoring the company’s financial performance, market dynamics, and regulatory developments to gauge its potential for sustained growth and profitability.

As Zomato continues to navigate the dynamic landscape of the food delivery industry, investors remain eager to capitalize on the company’s promising growth opportunities. With bullish forecasts from leading brokerage firms like UBS, Zomato’s journey toward achieving its ambitious targets appears to be gaining momentum, setting the stage for an exciting period ahead in the world of Indian e-commerce