Shares of Zomato jumped 6 percent on October 5, extending past few sessions' rally to hit a fresh 52-week high of Rs 107.70 on NSE. The stock is seeing interest from investors as analysts see tailwinds for the food delivery platform from the cricket world cup. Foreign brokerage Jefferies expects overall restaurant consumption to rise with a likely benefit to Zomato.
Domestic firm Way2Wealth has also identified Zomato as one of its playing 11 which could potentially turn out to be the domestic stock market's run machine during world cup. "As an online food delivery platform, Zomato may experience increased orders and restaurant partnerships during the ICC World Cup, especially for home-viewing parties," it said.
Follow our market blog for all the live action
World Cup tailwind for Zomato
Karan Taurani, Senior Vice President - Research Analyst at Elara Capital also believes that Zomato could be the biggest beneficiary of the World Cup in the post-Covid era. "If you look at the market share numbers over the last 3-4 years, pizza has lost market share as a category within the overall QSR chain. It's a win-win for burger, fried chicken for aggregators like Zomato, over the near to medium-term," he said in an interview with CNBC-TV18 recently.
Zomato share technicals
Zomato shares closed at Rs 105.75 on NSE on October 5. The stock has soared 75 percent so far this year. Technicals show that the relative strength index (RSI) of the stock stands at 62.8, implying that it's trading neither in the overbought nor in the oversold territory.
Also Read: Game on: Domino's, Nykaa, Nazara among consumer stocks ready to ride the World Cup wave
The one-year Beta of Zomato stands at 1.65, implying very high volatility. The stock is trading above its 5-day, 10-day, 20-day, 50-day, 100-day and 200-day moving averages, according to Trendlyne data. While Zomato's share price is comfortably above the Rs 100 mark, it is still 37 percent below its all-time high of 169.1, hit in November 2021.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
