Zomato shares have delivered an incredible return of over 151% in the last one year and are trading near their 52-week high of Rs 298.2. Jefferies sees the momentum persisting as it maintained its buy rating with a target of Rs 335, representing a potential upside of over 17 per cent.

The buy call was launched on the sidelines of the food aggregator’s unveiling of the ‘District’ app, a platform through which the company aims to expand its services beyond food delivery services as well as fast trade (QC).

Primarily, the app will integrate all “outing” services, including dining, movies, sports ticketing, live shows, shopping and stays, creating a one-stop destination for customers.

The global brokerage said Zomato unveiled the ‘District’ app, a one-stop destination for going out, a theme for the direction of the next decade.

Starting with restaurants and ticketing, new use cases will emerge, he adds.

Additionally, the brokerage emphasized that while the industry is in its infancy, the current TAM may be limited, but that’s how food delivery and quality control were until ago some time.

The market is supply constrained, which means there are plenty of opportunities – ask Coldplay and Diljit Dosanjh fans in India who are still trying their luck to get a pass, he adds.

Zomato QIP

The company’s QIP closed the day before with an issue price fixed at Rs 252.62, a discount of 11.7 per cent to the previous close.

Zomato Stock Price Performance

Since the start of the year, the stock has surged 131 percent.