In this discussion, we will focus on one of the popular stocks that holds significance not only in India but also globally. We will delve into the Zomato share price targets spanning from 2023 to 2050, providing insights into the company’s predicted performance. Additionally, this article covers essential information about the company’s fundamentals and addresses common investor queries.
Furthermore, we will explore the business model of Zomato, analyze the risks associated with investing in the company, and examine its historical share price, sales, and profits. All of these details can be found below on this page. Continue reading until the end to gain a comprehensive understanding.
Zomato Share Price Target 2023 to 2050
Zomato conducted its initial public offering (IPO) in July 2021, with shares priced at Rs. 76 each. The IPO garnered significant attention, as it was oversubscribed by an impressive 38.25 times. Upon its debut on the NSE and BSE, Zomato’s shares traded at a 53% premium over the IPO issue price, propelling its market capitalization beyond Rs. 1 Lakh Crore.
The stock’s journey did not end there, as its value continued to rise and reached a peak of Rs. 150 in September 2021. Investors enjoyed substantial gains during this period. However, the scenario changed in early 2022, when the stock began to decline, eventually hitting a low of Rs. 46.80 in July 2022, falling below its issue price. Since then, it has been in a consolidation phase, but in May 2023, it started showing signs of an uptrend.
As of June 2023, Zomato’s shares are trading around Rs. 73, nearly reaching its IPO issue price. Speculation has arisen regarding the stock’s potential return to Rs. 150. Consequently, many individuals are interested in predicting Zomato’s share price to capitalize on potential investment opportunities. To assist you in this endeavor, we have provided the following target prices and essential points below.
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About Zomato
Zomato, previously known as FoodieBay, is an Indian multinational company that specializes in restaurant aggregation and food delivery services. It was established in 2008 by Deepinder Goyal and Pankaj Chaddah. However, due to a naming conflict with eBay, the company rebranded itself as Zomato in 2010.
Presently, Zomato stands as the sole listed player in the online food ordering and delivery segment. Its growth and expansion have been facilitated through various mergers and acquisitions, including Gastronauci, Cibando, Urbanspoon, Maple Graph, and others.
Zomato has garnered immense success in online marketing, consistently delivering impactful advertising campaigns that generate substantial revenue. During February 2013, the initial investor in Zomato, Info Edge, held a 57.9% stake in the company.
Zomato Share Financial Analysis
Data As of 16th June 2023
Zomato has negligible debt because it does not require too much debt to operate their business. Zomato has the asset light model. Their sales growth over the period of time has been absolutely great as compounded sales growth for 5 years is 72%, 40% for 3 years and 68% in last one year.
Zomato is a loss making company. However, they are continuously narrowing down their losses. As such, it is hard to predict whether Zomato will become profitable or not. Though, it has the potential to become a profitable and a growth company.
Factors Affecting Zomato’s Share Price in Future
Once you have reviewed the target price of Zomato stock for the years 2023 to 2050, it becomes crucial to grasp the factors that can impact the share price of Zomato. Numerous significant aspects influence the company’s valuation and the performance of its stock.
Financial Performance
The revenue growth, profitability, and ability to generate consistent cash flow are key factors that significantly impact Zomato’s share price. Presently, the company’s revenue is on the rise, but it is yet to achieve profitability. Therefore, it is important to monitor these factors closely in the coming quarters.
Market Competition
The competitive environment in the food delivery industry, with competitors such as Swiggy, can influence Zomato’s market share and, consequently, its share price. Moreover, the emergence of ONDC (One Nation, One Digital Platform) poses an even greater challenge for Zomato.
Technology and Innovation
Zomato’s capacity to innovate and embrace cutting-edge technologies to improve its services and operational efficiency can have a significant impact on its long-term growth potential and, consequently, its share price. Given that technology plays a vital role in their operations, staying ahead in this aspect is crucial for Zomato’s success.
Economic Conditions
Similar to other industries, Zomato is susceptible to the overall state of the economy. In the event of a future recession, Zomato may experience increased pressure as economic downturns present various challenges for businesses. Moreover, companies often defer their expansion initiatives during such periods.
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FAQs Related to Zomato Share Price Prediction
Individuals who currently own Zomato shares or are considering investing in the company often have inquiries regarding its price. To address these commonly asked questions, we have compiled a list and provided answers below. Feel free to explore them!
Will Zomato share price increase in future?
Numerous factors will influence the future price of Zomato shares. While there is a strong possibility of an increase in price, it’s important to remember that nothing is certain in the stock market. Therefore, prudent risk management is crucial for all investors.
Why was the Zomato share price falling?
Following a successful listing and a significant surge to double its issue price, the share price of Zomato experienced a sharp decline, falling below the initial offering price. The primary factor behind this decline was the market’s inability to digest the high valuation.
Last Wording
To summarize, Zomato share price target for the years 2023, 2025, 2027, 2030, and even up to 2050 indicating the possibility of significant growth and increased value. These predictions consider factors like Zomato’s financial performance, competition in the market, how engaged users are, government regulations, and advancements in technology. It’s crucial to remember that the stock market is prone to changes and outside factors that can affect share prices.
Disclaimer: The content presented on this website is not intended as investment advice. It is provided solely for informational and educational purposes. It is always advisable to seek guidance from a financial advisor before making any investments. Please note that we are not registered advisors with SEBI.
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