In human civilization, food has always held a central role, not just as a basic necessity but as a cultural cornerstone, a social binder, and a source of joy and comfort. Over the centuries, the relationship with food has evolved, influenced by technological advancements, globalization, and changing lifestyles. Today, we find ourselves in the digital age, where technology has dominated every aspect of our lives, including how we interact with food. The advent of the internet and smartphones has given birth to a new era in the food industry, marked by convenience, diversity, and a customer-centric approach. In this scenario, one company that stands out is Zomato. This online food delivery platform has redefined our food experience, making a variety of cuisines accessible at our fingertips. But Zomato is more than just a food delivery app; it’s a platform that connects food lovers, restaurants, and delivery partners, creating a vibrant ecosystem that thrives on technology and passion for food. Today, we can order a variety of cuisines from the comfort of our homes, thanks to food delivery platforms like Zomato. This India-based online food delivery service has transformed the food industry, making dining convenient, diverse, and delightful. Zomato’s share price also witnessed a massive surge over the few years, and it has now become a top investment option for investors. In this article, we will dive deeper into Zomato share price prediction, its future price potential, and financial market performance to guide you through a profitable investment plan.
Zomato: A Quick Note
Zomato’s journey began in 2008 when Deepinder Goyal and Pankaj Chaddah, two IIT Delhi graduates, launched a website called Foodiebay. The initial idea was simple yet innovative – to provide restaurant menus online. The founders noticed their colleagues wasting time deciding what to order from paper menus, and they saw an opportunity. Foodiebay quickly gained popularity, and in 2010, it was rebranded as Zomato.
Zomato stands as an Indian multinational restaurant aggregator and food delivery company. Zomato’s core services revolve around providing users with comprehensive information, menus, and valuable user reviews of restaurants. Additionally, it facilitates food delivery from partner restaurants across a vast network that spans over 1,000 Indian cities and towns as of the year 2022–23.
Zomato’s evolution has been marked by continuous innovation and expansion. From being a simple menu aggregator, it has grown into a full-fledged food delivery platform, serving millions of users across the globe. Zomato expanded its services to include table reservations, user reviews, and a subscription service, Zomato Gold, now known as Zomato Pro.
Zomato’s user reviews and ratings have also brought transparency to the industry, helping customers make informed choices. Furthermore, the company’s initiatives, like Zomato Kitchen, aim to empower local chefs and small businesses, contributing to the overall growth of the food industry.
Zomato: Expansion And Dominance
Zomato, in 2011, broadened its operations across India, establishing a presence in Delhi NCR, Mumbai, Bangalore, Chennai, Pune, Ahmedabad, and Hyderabad. The following year, 2012, saw the company’s international expansion into several countries, including the United Arab Emirates, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South Africa. In 2013, Zomato further extended its reach to New Zealand, Turkey, Brazil, and Indonesia, offering its website and apps in multiple languages, including Turkish, Portuguese, Indonesian, and English. Portugal welcomed Zomato in April 2014, and the company subsequently launched in Canada, Lebanon, and Ireland in 2015.
Zomato’s acquisition of the Seattle-based restaurant discovery platform Urbanspoon in January 2015 marked its entry into the United States and Australia. This expansion positioned Zomato in direct competition with similar platforms like Yelp and Foursquare.
Zomato ventured beyond restaurant listing in 2015 by initiating its food delivery service in India. The company initially collaborated with firms like Delhivery and Grab to handle deliveries from restaurants without their own delivery services. To date, Zomato continues to compete with Swiggy in the food delivery and hyperlocal space.
In April 2015, Zomato acquired the American online table reservation platform NexTable, which was later rebranded as Zomato Book. The table reservation feature of Zomato Book was introduced on its app in India in January 2016. The same year, in April, Zomato acquired the cloud-based point of sale (PoS) company MapleGraph Solutions and launched its own PoS system for restaurant owners, Zomato Base, which included features like menu and inventory management, payment system, and analytics. Later in 2016, Zomato acquired Sparse Labs (renamed Zomato Trace) and incorporated its real-time delivery location tracking technology into its food delivery platform.
In February 2017, Zomato announced its intention to launch Zomato Infrastructure Services, a cloud kitchen infrastructure service aimed at assisting partner restaurants in expanding their operations without incurring fixed costs. Later that year, it introduced a paid membership program, Zomato Gold, which offered subscribers discounts and deals on dining and food delivery at Zomato’s partner restaurants.
Zomato’s Robust Initiatives
In response to the COVID-19 pandemic’s impact on food delivery and the surge in online grocery orders, Zomato launched a service named Zomato Market in April 2020. This service, which delivered groceries and essentials, was available in over 80 cities across India. The same month, Zomato introduced contactless dining at its partner restaurants. In May 2020, with the approval of the respective state governments, Zomato began alcohol delivery in West Bengal, Jharkhand, and Odisha. However, the pandemic’s effects led to the layoff of 520 employees in May 2020.
Zomato Market ceased operations in June 2020 as food delivery demand rebounded and the grocery delivery business proved unscalable. In April 2021, Zomato withdrew from the alcohol delivery service due to poor unit economics and scalability issues.
Zomato went public in July 2021, launching its initial public offering at a valuation exceeding US$8 billion. However, by November 2021, Zomato had discontinued its services in all countries except India and the United Arab Emirates.
In April 2022, Zomato piloted a 10-minute food delivery service called Zomato Instant in Gurgaon. Two months later, in June 2022, Zomato announced the acquisition of the quick-commerce company Blinkit for US$568 million.
In August 2022, Zomato introduced a service named Intercity Legends in Delhi NCR, enabling users to order food from renowned restaurants in other cities within a few days. In November 2022, Zomato launched the Zomato Pay feature, allowing users to make payments at partner restaurants and avail offers and enabling partner restaurants to promote themselves.
By February 2023, Zomato had ceased operations in Australia while continuing its operations in India and the UAE. In June 2023, Zomato implemented a significant update to its app, allowing users to create multiple carts simultaneously. This feature enabled Zomato users to compile carts from up to four restaurants and place a combined order.
Zomato Share: Price History
Zomato’s initial public offering (IPO) in July 2021 was one of the most anticipated events in the Indian stock market. The company opened its IPO at a valuation of over US$8 billion, signaling strong investor confidence. The IPO was oversubscribed, and the shares were listed at a premium on the stock exchanges, reflecting the high demand among investors.
Following the IPO, Zomato’s share price experienced fluctuations, a common occurrence for newly listed companies. On 23 July 2021, Zomato shares started trading at a price of ₹126. The oversubscription of the IPO and the premium listing of the shares on the stock exchanges were indicative of strong investor confidence, which positively impacted the share price. Zomato share price quickly surged, and it attained a high of ₹140 in a few weeks. The price continued to surge and broke above ₹150 by the end of 2021.
In early 2022, Zomato’s share price took a hit as the price witnessed significant downward volatility and initiated a decline. Several factors have influenced Zomato’s share price over time. The company’s decision to cease operations in several countries in November 2021 to focus on its core markets, India and the United Arab Emirates, was a strategic move that impacted investor sentiment.
Zomato’s share value dipped further in mid-2022, and it touched a low below ₹50 in July. However, bulls were able to hold momentum near this level and triggered a recovery rally in the upcoming months. Due to several acquisitions and strategic initiatives, Zomato’s share price witnessed a rise, and it broke above the bearish channel pattern and touched ₹70 in November.
However, the price faced minor bearish pressure in early 2023, and it again dropped below the ₹50 mark, but this time the price witnessed a strong rebound and recorded a solid recovery, holding above ₹90 as of now.
Zomato Share Price Prediction: Technical Analysis
Recently, the Zomato share price experienced a solid bullish trend, which has brought more buying pressure to the market in recent days. The price has been on a steady upward trajectory since March’s recovery rally. After breaking above the ₹56 mark, Zomato shares sparked an intense buying momentum and surged exponentially. The market was previously heavily influenced due to poor performance, covid pandemic; however, Zomato showed a strong recovery, as seen on the daily price chart, and maintained its price stability. Despite facing critical support levels, including ₹50 and ₹39, Zomato’s share has managed to display an uptrend and is now well above the fear zone. A thorough technical analysis of Zomato’s share price reveals bullish indicators, which may soon send the price to new highs. Investors should exercise caution as the short-term investment plan for Zomato seems volatile.
According to TradingView, the Zomato share price is currently trading at ₹95.4, reflecting an increase of 10.23% in the last 24 hours. Our technical evaluation of Zomato’s price indicates that the current bullish momentum may soon fade if bears reverse the trend from immediate resistance at ₹101; however, bulls are trying to prevent the price from dropping below the breakout level of ₹87. Examining the daily price chart, Zomato’s share price has found support near the ₹81 level, from which the price gained bullish momentum and broke above multiple Fib channels. As Zomato’s price surged above the EMA20 recently, bulls may soon open further long positions and send the stock price to test its resistance. The Balance of Power (BoP) indicator is currently trading in a positive region zone at 0.64, hinting at an upward correction ahead.
To thoroughly analyze the price of Zomato’s shares, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a solid surge as Zomato’s price made an upswing. The trend line is heading toward the overbought region as it currently trades at level 78, hinting that further upward correction is on the horizon. It is anticipated that Zomato’s share will soon attempt to break above its 23.6% Fibonacci level to achieve its short-term bullish goals. If bears fail to plunge below the current 0.038 Fibonacci region, an uptrend above ₹101 might be on the horizon.
As the SMA-14 continues its upward swing by trading above 67-level, it trades slightly below the RSI line, potentially holding promises of the stock’s upward movement on the price chart. If Zomato’s shares continue to surge, it can pave the way to resistance at ₹143. A breakout above will drive the share price toward the upper limit of the Bollinger band at ₹170.
Conversely, if Zomato fails to hold above the critical support level of ₹87, a sudden collapse may occur, resulting in further price declines and causing the Zomato shares to trade near the Bollinger band’s lower limit of ₹72. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to ₹60.
Zomato Share Price Prediction By Blockchain Reporter
Zomato Share Price Prediction 2023
In 2023, the average price for Zomato shares is predicted to be around ₹80. The minimum price could potentially drop to ₹60, while the maximum price could rise to ₹110. This prediction takes into account the company’s ongoing efforts to expand its footprint in the food delivery market and the expected growth in the online food ordering sector.
Zomato Share Price Prediction 2024
By 2024, the average price for Zomato shares is projected to be around ₹140. The minimum price could be around ₹110, while the maximum price could soar to ₹170. This growth is expected to be driven by the company’s expansion into new markets and the increasing adoption of digital platforms for food ordering and delivery services.
Zomato Share Price Prediction 2025
In 2025, the average price for Zomato shares is anticipated to be around ₹200. The minimum price could be around ₹160, while the maximum price could rise to ₹230. This prediction is based on Zomato’s continued efforts to diversify its offerings and the expected increase in the usage of online platforms for food and beverage services.
Zomato Share Price Prediction 2026
By 2026, the average price for Zomato shares is expected to be around ₹260. The minimum price could be around ₹210, while the maximum price could reach ₹310. This growth is likely to be fueled by Zomato’s strategic partnerships and the growing trend of online food delivery in emerging markets.
Zomato Share Price Prediction 2027
In 2027, the average price for Zomato shares is predicted to be around ₹320. The minimum price could drop to ₹260, while the maximum price could be ₹380. This can be due to Zomato’s ongoing innovations in the food delivery space and the expected growth in the online food ordering industry.
Zomato Share Price Prediction 2028
By 2028, the average price for Zomato shares is projected to be around ₹380. The minimum price could be around ₹310, while the maximum price could soar to ₹450. This growth is expected to be driven by Zomato’s continued expansion into new markets and the increasing consumer preference for online food ordering and delivery services.
Zomato Share Price Prediction 2029
In 2029, the average price for Zomato shares is anticipated to be around ₹440. The minimum price could potentially drop to ₹360, while the maximum price could rise to ₹520.
Zomato Share Price Prediction 2030
By 2030, the average price for Zomato shares is expected to be around ₹500. The minimum price could be around ₹410, while the maximum price could reach ₹590.
Zomato Share Price Prediction: Experts’ Opinions
Nomura India values the stock at Rs 45, citing the challenges in achieving high gross order value (GOV) growth and significant contribution margin improvement in the core food delivery business. Nuvama Institutional Equities suggests that Zomato’s reintroduction of its Gold membership plan could stimulate growth and proposes a target of Rs 94 for the stock.
Meanwhile, Motilal Oswal Securities estimates the stock’s value at Rs 80. They note that while Zomato’s food delivery performance has been less than impressive in recent quarters, the company has managed to significantly improve profitability during the same period.
Financial Report: Zomato Reports Profit In Q1 For FY24
Zomato, the food delivery platform, unveiled its Q1 earnings for FY24 on Thursday. The company turned a net profit of ₹2 crore, a significant improvement from a loss of ₹186 crore year-on-year (YoY). The firm’s revenue saw an increase, standing at ₹2,416 crore compared to ₹1,414 crore (YoY). For the quarter ending June 30, Zomato reported a profit of 20 million rupees ($241,861.37).
The company, which also operates the grocery delivery service Blinkit, announced a 70.9% increase in consolidated revenue from operations, reaching 24.16 billion rupees in the first quarter.
In the first quarter of the current fiscal year, consolidated revenue from operations was ₹2,416 crore, up from ₹1,414 crore in the same period last year.
However, total expenses also rose to ₹2,612 crore, compared to ₹1,768 crore in the same quarter the previous year. In a letter to shareholders, Zomato’s Managing Director & CEO, Deepinder Goyal, stated that the company is striving to simplify its business and ensure the right personnel are in the right roles within its operations.
Goyal expressed confidence in May that the company would achieve profitability across the entire business in the upcoming four quarters.
Is Zomato A Good Investment? When Should You Buy?
Zomato has been a topic of interest among investors since its successful IPO in 2021. The company’s strong market position, robust growth potential, and innovative business model make it an attractive investment prospect.
Zomato operates in a high-growth industry. The online food delivery market is expected to grow significantly in the coming years, and Zomato’s share price is expected to surge exponentially.
However, Zomato is not without risks. The company operates in a highly competitive market, with players like Swiggy and Amazon vying for market share. Additionally, Zomato is yet to turn a consistent profit, which is a concern for some investors.
For a profitable return in the long term, an investment near ₹80 can be a good option to ride a bullish wave.
Conclusion
Zomato’s business model is not just limited to food delivery. It has diversified into other areas, such as restaurant reviews, dining-out memberships, and even grocery delivery, showcasing its innovative approach to business. The company has a strong presence in several countries and has built a robust platform connecting restaurants and consumers.
However, it is advised to do your own research and conduct experts’ opinions before investing in this stock.
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