In a surprising twist amidst a sluggish atmosphere in the online food delivery sector, global financial services firm Goldman Sachs has expressed strong confidence in Zomato shares. On Friday, the firm reiterated a "Buy" rating on the stock and raised its target price to ₹310, signaling a potential upside of over 50% from the current market levels.
Zomato Share Price Trends: Recent Performance
As of April 4, 2025, Zomato stock touched a low of ₹205.85, significantly lower than its 52-week high of ₹304.50 reached in December 2024. Despite gaining 17.5% over the past year, the stock has been under considerable pressure in recent months. It has declined 22% in the last six months, including a 5.7% drop over the past month.
This volatility is attributed to multiple macroeconomic factors, investor sentiment, and concerns over operational costs. However, analysts believe that the fundamentals of the business remain strong, and recent developments could provide a catalyst for a sharp recovery.
Bullish Outlook from Goldman Sachs
Goldman Sachs, in its latest report, emphasized the robust business model of Zomato and its expansion across verticals. With a target price of ₹310, the stock presents a strong growth potential for long-term investors. The report highlights improvements in delivery margins, increased order frequency, and synergies from its various business arms.
Given that the stock is currently trading near ₹205, the new target represents a potential appreciation of more than 50% — an encouraging sign for investors looking to accumulate at lower levels.
Major Legal Relief: NCLT Dismisses Insolvency Petition
In a recent positive development, the National Company Law Tribunal (NCLT), Delhi, dismissed an insolvency petition filed against Zomato by Nona Lifestyle, a uniform supplier. The petition alleged a payment default of ₹1.64 crore. However, the tribunal found procedural lapses and a lack of compliance with the Insolvency and Bankruptcy Code (IBC), leading to the case's dismissal.
This verdict has been perceived as a positive legal outcome for Zomato, lifting some of the concerns hovering over the company’s financial obligations and reinforcing its legal standing.
Corporate Rebranding: Zomato Becomes 'Eternal'
In March 2025, Zomato shareholders approved a special resolution to change the company's corporate name to 'Eternal'. The rebranding reflects the company’s evolution into a multi-business conglomerate while continuing to operate its food delivery services under the well-known Zomato brand.
Eternal now encompasses four key businesses:
- Zomato (Food Delivery)
- Blinkit (Quick Commerce/Grocery)
- Hyperpure (B2B Supplies for Restaurants)
- District (Upcoming Business Initiative)
According to CEO Deepinder Goyal, the company’s new corporate website will be eternal.com, although the customer-facing Zomato app and brand identity will remain unchanged.
Conclusion: Is Zomato Stock a Good Buy Now?
Despite recent corrections, Zomato appears poised for a potential turnaround. With a positive outlook from Goldman Sachs, key legal victories, and strategic rebranding under the 'Eternal' umbrella, the stock offers compelling value at current levels.
For investors with a medium to long-term view, this could be an opportune moment to accumulate Zomato shares before a possible rally. As always, it's advisable to conduct due diligence or consult with financial advisors before making investment decisions.
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Note:
Before adopting any health tips, consult a doctor. Because no one knows better than your doctor what is appropriate or how appropriate for your body