After seeing a sharp decline in the first trading session of the week due to the HMPV virus, the indian stock market recovered in the trading session of tuesday, january 7, 2025. But tuesday is proving to be an inauspicious day for the stock of quick commerce and online food delivery company Zomato. Veteran foreign brokerage house Jefferies has reduced the target price of Zomato's stock due to increasing competition in the field of quick commerce, due to which the company's stock fell sharply by 5 percent. The stock fell 5 percent from the previous closing price of Rs 264.85 to Rs 251.55 and is currently trading at Rs 252.65 with a decline of 4.63 percent.
Jefferies reduced Zomato's target price
Jefferies has downgraded Zomato's stock and advised investors to hold the stock and the brokerage house has reduced its target price from Rs 335 to Rs 275. In its report, Jefferies said, Zomato's valuation is not expensive but we are concerned about the increasing competition in quick commerce. In its note, the brokerage house said, due to the aggressive stance of existing players in the sector and the entry of new players, heavy discounting can be seen. Giving more discount will affect profits in the medium term. Jefferies has reduced Blinkit's EBITDA estimate for FY 26-27.
zomato is a multibagger stock
The year 2025 was great for Zomato's stock. On january 1, 2024, the stock was trading at Rs 124, which reached Rs 304.7 on december 9, 2024. That is, in one year, Zomato's stock gave a return of 146 percent to its shareholders. Not only this, zomato also became a part of Sensex 30 stocks. But according to Jefferies, 2025 will be challenging for the company.
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