Zomato's stock has risen 48 percent in the previous month, prompting brokerages to increase their target price

Zomato Ltd's stock has risen by more than 48% in the last month as brokerages raised their target price following the company's March quarter reporting.

On May 11, the stock fell to a low of Rs 50 per share, and on Tuesday, it was trading at Rs 74.4 per share, up 4% from its previous close.

a brokerage firm The stock has a 'overweight' rating from Morgan Stanley, with a target price of Rs 135 per share. The stock has a 'buy' rating from research firm UBS, with a target price of Rs 130 per share. The stock has been raised from hold to buy by Edelweiss Capital, with a price target of Rs 80. Spark Capital has upped its buy recommendation on the company from add to buy, with a target price of Rs 90 per share.

Zomato's overall net loss for the quarter ended March increased to Rs 360 crore, up from Rs 134.2 crore a year before. Revenue from operations totaled Rs 1,211.8 crore, up 75.01 percent from Rs 692.4 crore the previous quarter.

Analysts claim that in the fourth quarter of FY22, Zomato showed considerable sequential improvement in all key operational and financial parameters. Even more impressive were the disclosures and management's willingness to address investor concerns via a shareholders letter and a post-results conference call.

With a dual focus on growth and profitability, management expects sequential top line growth to accelerate to double digits in the first quarter of FY23 (despite supply side problems in some areas), as well as considerable reductions in Adj. EBITDA losses.

The company stated that its contribution profit was positive in 120 of its top 300 cities in FY22 (compared to just 5 in FY20), implying that group contribution profits could reach double digits in the long run, according to experts.

"We remain optimistic about Zomato's long-term growth prospects in the hyperlocal delivery arena, as it is well positioned to benefit from strong industry tailwinds like increased tech penetration and expanding income share of digitally native millennials or GenZ."

"We also maintain a positive view on the company's other hyper-local ecosystem investments (beyond core food delivery) because they could lead to bundled offerings that would not only help it improve customer engagement, retention, and ordering frequency, but also drive operational synergies," according to the JM Financial report.

The stock has been under pressure since the beginning of the year, falling over 65 percent as global equities markets fell amid expectations of global central bank tightening.