By Soni 
Zomato Share Price: Zomato’s stock recently touched a high of ₹284. The stock has given a return of 53% in the last six months, while in one year this figure has reached 147%. This performance reflects the growing expectations about Zomato among investors.
Effect of entry in Sensex
Zomato will become part of Sensex from 23 December:
Zomato will be included in the Sensex, the major index of the Indian stock market. This change will be effective from 23 December 2024, in which Zomato will replace JSW Steel.
Benefit from ETF and index inflow:
After entry in Sensex, Zomato can get large scale investment from ETFs (Exchange Traded Funds) and index funds. This investment will work to give additional momentum to Zomato’s stock.
Funding will give strength to growth
₹ 8,500 crore QIP approved:
Zomato has got approval from its shareholders and board for the ₹ 8,500 crore Qualified Institutional Placement (QIP) plan. This fund will be used in the expansion of the company and new schemes.
Morgan Stanley’s positive outlook
“Overweight” rating and target of ₹355:
Morgan Stanley has retained an “overweight” rating for Zomato and raised its target price to ₹355 from ₹288.
Ability to maintain market share:
The brokerage house believes that Zomato is capable of maintaining 40% market share even as competition in the sector grows.
Strong fundamentals
Strong balance sheet and execution capability:
Zomato’s balance sheet is strong, and the company’s execution capability is also considered to be excellent. These factors are attracting investors.
Increasing share in Quick Commerce:
The company’s share in the Quick Commerce segment is constantly increasing, which will make Zomato’s growth more stable.
Expert opinion
Anshul Jain of Laxmi Investment’s advice:
Expert Anshul Jain believes that investing in Zomato’s stock at the current level can be beneficial.
Price level: Investment is attractive at ₹ 280.
Target: ₹ 400-450 levels can be seen in 1-1.5 years.
Important level: ₹ 300 level is a critical resistance point for the stock.
Should one invest in Zomato?
Brokers and experts are quite bullish on Zomato. Entry in the Sensex, plans to raise capital through QIP and strong fundamentals make it a good option for long-term investment.
Conclusion
Zomato’s stock is in the news due to its performance and future plans. Entry in the Sensex and raising capital through QIP will further strengthen the company’s position. Experts believe that investing in Zomato at the current level can be beneficial.