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.

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.

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.

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

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

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