Zomato shares may gain up to 50% in its pursuit of more loyal customers, say analysts

After analysts expected an up to 50 percent upside in Zomato stock price (from yesterday's closing price) with the food tech platform shifting its focus to growth, the firm's shares traded in the green on February 24. At 10:27 am, Zomato shares were trading 1.46 percent higher at Rs 55.75 on BSE than the previous day.

Brokerage Morgan Stanley said that Zomato's pilot of home-cooked meals at an affordable price in Haryana’s Gurugram would increase the company’s total addressable market and contribution profit pool but dilute profit per order.

The brokerage also pointed out that this was an experiment, which could be closed if it "doesn’t work out". Morgan Stanley has an overweight rating on the stock with a target price of Rs 82 per share.