Should I buy Zomato stock in 2025 in the UAE?

What is Zomato?

How much is the Zomato stock?

The price of Zomato stock is rising this week. As of now, Zomato (trading as Eternal Ltd.) stands at ₹238.31 per share, up 0.49% in the last 24 hours and showing a strong 7.33% gain over the past week.

The company’s market capitalization is ₹2,23,550 crore, with high average daily trading volume over the last three months. The current price-to-earnings (P/E) ratio is an elevated 424.19, and the dividend yield remains at 0.00%, while beta data is currently not available.

Given the sharp price swings and high P/E, investors should stay alert to elevated volatility in this rapidly developing sector.

Our full analysis on the Zomato stock

Having thoroughly reviewed the latest financial results of Zomato (now Eternal Ltd.), in conjunction with its three-year stock performance and competitive positioning, we leveraged both quantitative indicators and qualitative signals—processed through proprietary analytical models—to provide a holistic stock assessment. Our approach integrates up-to-date valuation multiples, technical readings, and sectoral shifts, benchmarking Zomato’s trajectory against market peers. So, why might Zomato stock once again become a strategic entry point into the high-growth digital commerce sector in 2025?

Recent Performance and Market Context

Zomato’s stock (trading as “ETERNAL” post-rebranding) has demonstrated a striking resurgence over the past year, with the share price currently at ₹238.31, reflecting an impressive +24.9% return over 12 months and an extraordinary +332% since IPO. Importantly, recent weeks have seen robust momentum—the stock advanced +9.8% over the past month and +12.9% in three months—mirroring rising optimism following several transformative business events.

The rebranding from Zomato Ltd. to Eternal Ltd. in March 2025 marked a significant strategic shift. This move not only broadened the company’s public narrative beyond food delivery into quick commerce (Blinkit) and B2B restaurant supply (Hyperpure), but also aligned its perception with structurally higher-growth industries within India’s digital economy.

India itself maintains one of the world’s fastest-growing e-commerce and food delivery sectors, buoyed by expanding digitization, a burgeoning middle class, and favorable government policies. The quick commerce segment, in particular, is entering a new phase of consolidation and scalability—Eternal (Zomato) is well-positioned to capture incremental share, propelled by brand strength and operational expansion. Consequently, the macro and sector backdrop continues to foster a bullish setup for leading digital services players.

Technical Analysis

Recent price action in Eternal Ltd. exhibits a technically constructive pattern, with the stock consolidating above fundamental support in the ₹225–230 zone—levels that historically triggered strong bullish reversals. Moving averages—both short- and long-term—signal continued buy-side interest, as the 50-day and 200-day lines remain upward sloping and the price consistently trades above these moving references.

Momentum oscillators such as the Relative Strength Index (RSI) have retraced from overbought territory into a neutral-to-bullish band, suggesting further upside potential without the risk of being technically overextended. Notably, the MACD remains in positive territory and recently generated a fresh bullish crossover, underscoring renewed upward momentum.

Consensus technical targets place a near-term focus on ₹250–255 as an interim resistance range, with a broader medium-term objective of ₹310—a level that would represent over 30% potential upside from current pricing. The technical structure appears supportive of tactical positioning, either on pullbacks towards the ₹228–232 range or during momentum surges that clear the ₹255 area.

Fundamental Analysis

Beneath the surface of price action, Zomato’s fundamentals continue to impress. Fiscal year 2025 results highlight:

• Total Revenue (FY25): ₹21,320 Cr. (+64.5% YoY), outpacing most digital platform peers.
• Net Profit: ₹527 Cr., representing +50.1% YoY growth, despite margin headwinds from ongoing expansion.
• Operating Profit Margin: 4.2% with a net profit margin of 2.6%—metrics that, while thin, denote a clear path towards scalable profitability.
• Three-year CAGR: 56.9%—exceptional by regional and global standards.

What stands out is the company’s ability to drive high topline growth while retaining discipline in capital allocation. The Q4 results reveal increased strategic investments in Blinkit and AI innovation, which, in the short term, weighed on margins (Q4 net profit declined to ₹39 Cr.), but crucially set the stage for superior future operating leverage.

Valuation-wise, while the current P/E ratio (424x) may superficially seem steep, such multiples are typical for early-stage digital bellwethers reinvesting aggressively for future scale. When benchmarked against platform peers and adjusted for growth (PEG ratio), Eternal’s valuation appears justified, if not attractive, given its rapid expansion and unique ecosystem positioning.

Structurally, Zomato/Eternal’s competitive advantages merit recognition:

• Brand Leadership: Undisputed leader in Indian food delivery, with substantial customer mindshare.
• Platform Diversification: Expanding into high-potential quick commerce and B2B verticals (e.g., Hyperpure), buffering against sector cyclicality.
• Technology Focus: AI-driven service enhancements (such as the ‘Nugget’ platform) augment scalability and user retention—innovative capabilities that enhance medium-term margin profiles.

The company remains debt-free (₹459 Cr. cash on hand), protecting against rate-cycle risk and leaving runway for further aggressive growth or opportunistic M&A.

Volume and Liquidity

Eternal Ltd. continues to exhibit commendable liquidity, underpinned by sustained high volumes and strong institutional investor participation. This is further evidenced by robust foreign institutional holding (44.4%) alongside growing domestic and mutual fund engagement. Such liquidity not only facilitates smooth price discovery but also increases the likelihood of responsive, dynamic valuation shifts as market narratives evolve.

The share float is sufficiently broad-based to allow for efficient entry and exit, meaning investors angling for either tactical or strategic positioning can do so without significant slippage or liquidity discounts.

Catalysts and Positive Outlook

Several compelling catalysts underscore Zomato’s upside profile heading into 2025 and beyond:

• Quick Commerce Surge: Blinkit’s continued rapid rollout of ‘dark stores’ and urban market penetration is transforming India’s grocery and essentials delivery, tapping into a high-frequency, high-value consumer segment.
• B2B Expansion: Hyperpure’s scaling B2B logistics for restaurants unlocks new margin pools and strengthens ecosystem defensibility.
• AI and Technology Innovations: The launch of the proprietary ‘Nugget’ AI platform signals a shift toward automation, better customer experience, and operational efficiency.
• ESG Initiatives: Ongoing attention to environmental and social KPIs positions Eternal favorably within international capital pools increasingly tilted towards responsible investment.
• Regulatory Climate: Indian regulators’ pro-digital, pro-entrepreneurship policy stances support continued sector expansion, even as competitive intensity remains high.
• Analyst Upgrades: The consensus target sits comfortably higher (₹265–280), with some houses (CLSA) projecting as high as ₹375, providing a positive feedback loop for sentiment and institutional inflows.

Investment Strategies

Given these dynamics, Zomato/Eternal offers multiple entry points for different investor profiles:

• Short-Term Tactical Entry: Traders may consider initiating positions near technical support (₹228–232), targeting an initial move toward the ₹250–255 resistance zone, with disciplined risk management set below ₹220.
• Medium-Term Positioning: Investors with a 6–12 month horizon could seek to benefit from anticipated Q3/Q4 catalysts and consensus upgrades, with a medium-term target of ₹280–310.
• Long-Term Strategic Stake: For investors building core exposure to the Asian new-economy theme—especially those in the UAE looking to diversify into India’s digital transformation narrative—Eternal’s compelling growth, diversification, and high-quality management argue for a measured, multi-year investment.

The stock’s volatility and the sector’s competitive landscape warrant prudent position sizing, but technical and fundamental signals point toward an advantageous risk-reward balance at current levels.

Is It the Right Time to Buy Zomato?

In summary, Zomato (Eternal Ltd.) amalgamates a rare combination of sustained high growth, prudent capital management, brand dominance, and technological innovation—all underpinned by outstanding liquidity and robust institutional sponsorship. While near-term margin compression is a natural result of high-growth investment cycles, the scale of top-line expansion, structural tailwinds in India’s digital economy, and catalyzing business innovations suggest that the stock may be entering a new bullish phase.

The fundamentals justify renewed investor interest, with upside potential reinforced by sector momentum, supportive analyst targets, and transformative management actions. For investors seeking exposure to vibrant, tech-led growth stories—particularly those emphasizing resilience and scalability—Zomato/Eternal appears to represent an excellent opportunity at a strategic inflection point for India’s digital commerce sector.

As the path to sustained profitability and market leadership becomes clearer, Eternal Ltd. stands out as a dynamic investment candidate both for UAE-based investors looking to capture Asia’s digital revolution and for global allocators seeking differentiated growth. The question for forward-looking portfolios is not whether Zomato will participate in India’s next growth wave, but how significant its contribution will be. With key catalysts on the horizon, Eternal Ltd. deserves serious consideration as an anchor position in any technology-oriented investment strategy.

How to buy Zomato stock in the UAE?

Buying Zomato (Eternal Ltd.) stock online is simple, secure, and accessible for investors in the UAE. Regulated online brokers allow you to invest in Zomato shares with confidence, using robust security protocols and easy-to-use platforms—right from your phone or computer. There are two main ways: spot buying shares for direct ownership, or trading Contracts for Difference (CFDs) for leveraged, flexible trading. Both methods can be accessed from the UAE, and each has its own set of benefits and pricing. To choose the right platform for you, see our broker comparison further down this page.

Spot Buying

A spot, or cash, purchase means you buy real Zomato (Eternal Ltd.) shares in your name through a licensed international broker. You become the actual shareholder, eligible for any capital gains and for participating in company votes (if available to foreign investors). Fees are usually a fixed commission per order—typically around $5 to $10 USD (approx. AED 18–36) for UAE residents, depending on the brokerage.

Example

Suppose Zomato’s stock price is ₹238.31 per share (approx. $2.85 USD, or AED 10.47). With $1,000 (about AED 3,672), after a $5 commission, you could purchase roughly 349 Zomato shares.
✔️ Gain scenario:
If the share price rises by 10%, your shares are worth $1,100 (AED 4,039).
Result: That’s a $100 gross gain (+10%), minus your initial fees—a straightforward way to participate in Zomato’s growth.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Zomato’s price movement without owning the actual shares. CFD trading is popular for its flexibility and leverage—meaning you can control a larger position with a smaller deposit. Fees typically include the spread (the difference between buy and sell prices), and overnight financing charges if you hold positions open past the trading day.

Example

You open a CFD position on Zomato with $1,000 (AED 3,672) and apply 5x leverage. This gives you $5,000 (AED 18,360) market exposure.
✔️ Gain scenario:
If Zomato’s stock price rises by 8%, you earn 8% × 5 = 40%.
Result: That’s a $400 profit (AED 1,468) on your initial $1,000—excluding fees like the spread and overnight costs.
Note: Losses can be magnified just as gains are.

Final Advice

Before investing, always compare brokers’ fees, available platforms, and minimum deposit requirements. Not all brokers offer equal access to Indian shares or CFD products, and costs can impact your returns. Your ideal method—direct share ownership for long-term growth, or CFD trading for flexibility and leverage—depends on your goals and risk appetite. Explore our in-depth broker comparison below to find the solution that best fits your needs. Happy investing!

Our 7 tips for buying Zomato stock

The latest news about Zomato

Zomato (now Eternal Ltd.) stock surged over 7% in the past week, reflecting strong investor confidence. In the last seven days, Eternal Ltd. experienced a notable weekly gain of +7.33%, markedly outperforming broader market indices during a period of high institutional participation and trading liquidity. This surge mirrors sustained optimism driven by the company’s robust business strategy, reinforced by significant upward momentum since the start of the year, ultimately making it one of the best-performing stocks in its segment. The stock’s positive movement is being complemented by high analyst coverage and favorable buy ratings, which further enhance its attractiveness for internationally focused investors, including those in the AE region seeking exposure to high-growth Indian technology plays.

Eternal Ltd. posted stellar revenue growth of over 64% YoY in both quarterly and annual results. For the March 2025 quarter, the company reported revenue from operations of ₹5,833 crore (+64% YoY), and full-year revenue reached ₹21,320 crore, marking a 64.5% annual increase. Although the net profit for the quarter declined due to aggressive investments—primarily in expanding quick commerce services—annual net profit rose significantly, up 50% YoY to ₹527 crore. This growth demonstrates robust demand and execution capability across its business units, particularly food delivery and emerging quick commerce, which are especially relevant for analysts in the AE region monitoring high-growth consumer sectors with a technology tilt.

The successful rebranding from Zomato Ltd. to Eternal Ltd. underscores strategic diversification beyond core food delivery. In March 2025, the company officially transitioned its corporate identity, now trading as "ETERNAL" on NSE and BSE. This move signals the group’s broadening focus, not only maintaining its market leadership in food delivery but also scaling up its Blinkit quick commerce offering and expanding its Hyperpure B2B restaurant supply chain. This repositioning aligns with global consumer trends towards integrated commerce ecosystems, serving as a model for digital transformation and sectoral convergence observed in leading emerging markets—overtures of keen interest to AE-based investment strategists assessing parallels in local and regional market development.

Eternal Ltd. stands out for its exceptional financial health, with zero debt and sustained high cash flow. The company remains debt-free as of the latest reporting period, boasting a strong cash reserve of ₹459 crore. This positions Eternal favorably amid periods of market volatility, enabling continued investment in innovation and expansion without the burden of leverage risks. Its three-year revenue CAGR of 56.9% and leadership ranking by market capitalization in the Indian services sector offer additional assurance for investors seeking growth stability, especially those in the AE market aiming to diversify into resilient, high-caliber international equities.

Consensus analyst recommendations remain strongly positive, raising target prices and reinforcing a long-term buy thesis. With 28 analysts covering the stock, including leading global houses, the consensus rating stands at "BUY," supported by upward revisions in target prices. The mid-range consensus suggests upside towards ₹265–₹280, with some brokerages, such as CLSA, setting ambitious targets up to ₹375. The robust institutional and mutual fund holdings, alongside rising domestic participation, reflect growing confidence in Eternal Ltd.’s long-term profitability and scalability, providing a solid investment narrative for AE-based investors and funds seeking access to dynamic growth trends in India’s digital economy.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.