Online food delivery and quiz commerce companies are in the news these days, while Zomato's stock has emerged as the first choice of institutional investors. Mutual funds have bought the most zomato shares in the third quarter of the financial year 2024-25. Now three big brokerage houses have advised investors to invest in zomato shares to get big returns. Foreign brokerage house CLSA has given a target of Rs 400 and believes that the stock can give a return of up to 62 percent from the current level.
After the coverage report of brokerage houses came out, Zomato's stock is seeing a strong jump on thursday 16 january 2025. In today's session, it rose by 7.42 percent to Rs 262, which closed at Rs 243.90 in the last session. CLSA has released its coverage report on zomato, stating that the stock can outperform. According to CLSA, Zomato's stock can go up to Rs 400, which is 62 per cent above the current level.
Apart from CLSA, Morgan Stanley is also bullish on Zomato's stock. Morgan Stanley has advised to buy the stock for a target price of Rs 340. Another brokerage house Bernstein is also positive on the stock and has advised to buy Zomato's stock for a target price of Rs 315. During the recent decline in the stock market, the stock fell from an all-time high of Rs 304.70 to Rs 227. That is, the stock has fallen by more than 25 per cent from the all-time high.
Mutual funds are continuously buying zomato shares. In the October-December quarter, asset management companies have bought shares worth Rs 10,200 crore. Last month, mutual funds bought about 145 crore shares of zomato for Rs 24,000 crore, after which the mutual fund's holding in the company increased by 2.85 percent from 13.57 percent to 16.42 percent. The number of mutual fund schemes investing in zomato shares has also increased from 36 to 38. However, the share of foreign investors in the company has come down from 52.53 percent to 47.31 percent quarter-on-quarter.
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