Zomato share price edges higher after Goldman Sachs stake buying. Should you buy or sell?

Zomato share price surged as much as 1.30 per cent on Tuesday's trading session after Goldman Sachs bought shares worth ₹281 crore through open market transactions on Friday.

At 10 am, Zomato share price was trading higher at ₹204.68 apiece on NSE despite weak market sentiments.

According to the data, Goldman Sachs, via its affiliate Goldman Sachs (Singapore), purchased 60.07 lakh shares of online food delivery platform Zomato.

Goldman Sachs has also bought 3.85 lakh shares of Bengaluru-based Hindustan Aeronautics (HAL).

The shares were purchased at a price range of ₹199.5 to ₹4,176.25 per share, resulting in a total deal value of ₹280.96 crore. At the same time, Hong Kong-based asset management firm Kadensa Capital, through its subsidiary Kadensa Master Fund, sold an equal number of shares in HAL and Zomato at the same price.

Buy or sell?

Last week, global brokerage firm BofA Securities has downgraded the Zomato stock to ‘neutral’ from ‘buy’. The brokerage firm has also cut the target price of the food delivery aggregator stock to ₹250 from ₹300 earlier.

BofA Securities stated in its report that the downgrade is primarily driven by anticipated increases in losses from quick commerce and a slowdown in food growth.

According to a note from BofA, Zomato Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the financial years 2026 and 2027 are expected to be 20 per cent lower than market consensus.

The brokerage predicts a decline in cash flows within the food delivery sector, though it has not experienced a significant slowdown. For the quick commerce segment, BofA further forecasts extended competition, which is likely to result in greater losses.

Zomato share price has been underperforming by falling over 25.92 per cent in the past six months and over 9 per cent in one month.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.