Kotak sees Zomato shares rallying up to 26%, maintains buy rating

Kotak Institutional Equities reaffirmed a "buy" rating on Zomato, maintaining a target price of Rs 275, citing strong food delivery margins and Blinkits long-term profitability potential. Despite near-term pressures and Blinkits aggressive expansion, Kotak expects improvement in profitability by FY2026. The current stock price reflects overly pessimistic views, with an expected 26% upside potential.