Zomato Share Price Surge 14% and Hit 52-Week High on First-Ever Profit

Zomato Share Price Surge 14% and Hit 52-Week High on First-Ever Profit: A Game-Changer in the Food Delivery Industry

In a groundbreaking move for the online food delivery industry, Zomato witnessed a staggering 14% surge in its shares, propelling it to reach a remarkable 52-week high. This extraordinary feat comes hot on the heels of the company’s announcement of its first-ever consolidated profit after tax (PAT) for the April-June quarter of 2023-24 (Q1FY24). The game-changing profit of Rs 2 crore was achieved through a combination of tax gain and robust orders in its food and grocery delivery businesses. As the scrip skyrocketed to a peak of Rs 98.40 on the NSE, market analysts and investors alike were left awe-struck by this meteoric rise.

Consolidated Revenue Surge and Brokerage Reactions

In stark contrast to the same quarter in the previous fiscal year, Zomato’s consolidated revenue from operations for Q1FY24 registered an impressive surge, scaling up to Rs 2,416 crore from Rs 1,414 crore. This substantial financial growth has been met with overwhelming enthusiasm from brokerage houses, leading to a wave of increased target prices. Various brokerages have rushed to raise their target prices, providing further validation of Zomato’s promising trajectory. Amidst the excitement, many brokerages have upheld their positive ratings on the stock, reinforcing confidence in Zomato’s future prospects.

Technical Chart Analysis: Unleashing the Zomato Rally

Zomato share price 2023

A closer look at the technical chart of Zomato reveals fascinating insights into the stock’s journey. A significant correction phase witnessed five impulse waves down, driving the stock from 169 to 40.60 on 27 July 2022. Subsequently, the stock entered a year-long consolidation phase, oscillating between 40.60 and 80. However, the winds of change swept through as Zomato’s share price surged above the 200-day simple moving average (200sma), igniting a momentum pickup bolstered by heightened trading volume. This pivotal moment provided the much-needed catalyst for the stock to break out of its consolidation zone on 14 July 2023.

Zomato share Immediate Supports and Resistances

As Zomato’s exciting journey unfolds, traders and investors are keenly watching key support and resistance levels. The stock now finds immediate support at the previous resistance levels of 75-80, while additional strong support is anticipated in the range of 63-65. On the upside, immediate resistance levels stand at 102, with further potential resistance at 120. The enthusiastic outlook for Zomato has garnered attention from prominent brokerages, resulting in ambitious target prices ranging from 95 to 130.

The Future of Zomato: An Inspiring Growth Story

With Zomato’s remarkable financial turnaround and its share prices reaching new heights, the food delivery giant’s growth trajectory has become an inspiring story in the market. As the company continues to navigate the competitive landscape, investors and analysts are closely monitoring its strategic moves and financial performance. With positive market sentiment and ambitious target prices set by brokerages like Morgan Stanley, Goldman Sachs, Motilal Oswal Securities Ltd, Citi, and Jefferies, the stage is set for Zomato to carve a prominent niche in the food delivery industry.

In conclusion, Zomato’s astounding performance in Q1FY24 has set a new benchmark in the food delivery industry. As the stock charts new territories and market analysts eagerly follow its progress, Zomato’s journey is poised to inspire investors and reshape the landscape of the online food delivery sector.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Investing in the stock market carries risks, and readers are advised to conduct their own research and seek professional advice before making any investment decisions.

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