JM Financial Reduces Zomato Target by 8% on Rising ESOP Costs

The lowering to the PT is on the back of growing concerns over operating costs with increased expenses on ESOPs.

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Zomato is experiencing a high increase in the cost of its ESOPs, making them one of the prime elements in its financial strategy and cost structure.

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The JM Financial revision of the target price for Zomato comes at the back of a time in which its stock performance has equally been particularly volatile.

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The recent rounding of gains does not attribute the company’s stock to market dynamics characterized by regulatory changes and competitive pressure.

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These incentives bring a new framework of pricing incentive capping and restructuring the discount regime.

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JM Financial lowering the target price clearly demonstrates caution to the future profitability of Zomato, as the rise in ESOP cost reflects the same.

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