Goldman Sachs Raises Target Price Of Zomato Says Implied Value Of Blinkit Is More Than Zomato Now

Zomato Stock Price: Online food delivery multibagger company Zomato has given strong returns to its shareholders in the last one year. And the upward trend in Zomato's stock is expected to continue further. Global brokerage firm Goldman Sachs has increased the target price of Zomato's stock and advised investors to buy Zomato's shares for a target of Rs 240. After increasing the target price of Goldman Sachs, the stock of Zomato is trading at Rs 188.20 with a rise of 1.87 percent on Friday, April 26.

Goldman Sachs bullish on Zomato

Goldman Sachs has increased the target price of the stock from Rs 170 to Rs 240, which is about 41 percent more than this level. So the previous closing price is more than 30 percent from the level of Rs 184.70. The brokerage house said in its report that the CAGR (Compounded Annual Growth Rate) of the gross order value of the online grocery store Blinkint which was acquired by Zomato will show growth at the rate of 53 percent during the financial year between 2024 to 2027. So Zomato's adjusted revenue CAGR will grow at the rate of 32 percent annually, which will be the highest for any company in the global food industry.

Blikint becomes more valuable than Zomato

Global Investment Bank says that due to the quick commerce business of parent company Zomato, the value of Blinkint is now more than that of Zomato. Goldman Sachs has valued Blicint at Rs 119 per share and Zomato at Rs 98 per share. When Zomato bought Blicint in 2022, the company was heavily criticized. Now Blinkint is becoming the star of Zomato. Zomato's profits are continuously increasing due to which re-rating of the company is possible. Not only Goldman Sachs but JM Financial has also increased the target price of Zomato from Rs 200 to Rs 260. Whereas the target for the next three years is Rs 400 per share. Zomato's balance sheet is very strong as the company had cash of Rs 12000 crore at the end of December 2023.

Zomato stock jumped 360% in 2 years

In the last one year, there has been a one-sided rise in the stock of Zomato. On July 22, 2022, the stock had slipped below its IPO price of Rs 76 to the level of Rs 40.60. From that level the stock has increased by more than 360 percent. Whereas the stock has increased by 225 percent in one year. Zomato's shares have seen a rise of 52 percent in the year 2024.

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