Zomato share price jumps 5% in two straight sessions. More steam left?

Stock Market Today: Zomato Share price that gained up to 2% in morning trades on Tuesday have gained almost 5% in 2 trading sessions.

Zomato share price opened at ₹274.50 on the BSE on Tuesday, slightly higher than previous closing price of ₹273.60 . Zomato share price thereafter jumped to intraday highs of ₹278.60, marking gains of almost 2%.

The Zomato share price however has been rising and is up almost 5% over its closing price last week.

What's driving the gains-

The positive developments that have helped drive gains for Zomato share price is its inclusion in the 30-stock Sensex, while Zomato also approved for its ₹8,500 crore Qualified Institutional Placement (QIP).

Zomato inclusion in 30- stock Sensex has been a positive development adding to the investor confidence. Companies are added or removed from the Sensex based on their average six-month float-adjusted market capitalisation. The changes to the index and inclusion of Zomato is likely to take place from 23. December, 2024.

Zomato that had approved for raising funds through Qualified Institutional Placement (QIP) , on Monday 25, November, 2024 announced approving and authorizing the opening of the Issue setting a floor price of ₹265.91 per Equity Share.

Analyst views

Analysts have been maintaining positive views on Zomato ever since its Q2 results.

Elara Securities India Pvt Ltd while had said that they expect growth acceleration in H2, backed by the festive season, they had said that they estimate Earnings before interest tax depreciation and amortisation (EBITDA )as a percentage of GOV (Gross order value) to move to 4-5% in FY27, as guided.

Axis Securities that had maintained positive view raising their target price had said that strong brand value and increasing demand for B2C business and quick commerce, they believe Zomato will demonstrate exponential growth from FY25 to FY26

Technical suggest significant upside

Zomato's weekly charts are dishing out an intriguing technical setup, hinting at a possible bullish breakout. For the past 17 weeks, the stock has been simmering in a bullish flat base range—a classic pattern signaling potential upward momentum. Analysts believe this consolidation phase could stretch for another 8-10 weeks as the stock builds strength.

A decisive breakout above the key ₹300 mark could act as a springboard, catapulting the stock towards the ₹450 level—a significant milestone for long-term investors betting on Zomato's growth trajectory, said Anshul Jain, Head of Research at Lakshmishree Investment and Securities. This pattern is shaping up to be a potential game-changer, making Zomato a stock to watch closely for traders and investors eyeing the next big move, added Jain.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.