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Analysts Eye Gains Amid Market Volatility
As markets remain volatile amid geopolitical concerns, with the NSE Nifty 50 index dipping 2.4% in May, analysts are focusing on Zomato (now Eternal Limited) and Maruti Suzuki India. Both stocks have underperformed the Nifty 50 this year, with Zomato down 3.7% in May and both large-cap companies declining up to 21% year-to-date versus the index's 3% fall. However, technical analyst Muthuselvaraj M from Mirae Asset Sharekhan holds an optimistic view, predicting potential gains of up to 30% for Zomato and 22% for Maruti Suzuki. This positive outlook stems from technical signals suggesting a rebound following significant corrections.
Zomato Shows Technical Strength After Correction
Zomato, now officially operating under the parent entity Eternal Limited since March 2025, has dropped significantly from its peak of ₹368, losing about 42% and now trading around ₹238. Muthuselvaraj M points to positive weekly momentum, showing higher highs and lows, which suggests a potential rally towards ₹270-₹310. This target implies a 30.3% rise from current levels and aligns with a 61.8% Fibonacci retracement of its previous drop. As of May 2026, the company's market value was about $21.55 billion, with a P/E ratio of 377.63 in April 2026. Yet, the wider food delivery sector faces ongoing issues like intense competition, high customer acquisition costs, and pressure on restaurant commission rates, impacting profitability. Zomato's operations span food delivery, quick commerce (Blinkit), B2B supplies (Hyperpure), and dining-out services (District). While Zomato saw robust revenue growth of 64.49% in FY25 and a net profit of ₹527 crore, its EBITDA margin fell to 2.3% in Q3 FY26. The company also raised ₹8,500 crore via QIP to fund expansion.
Maruti Suzuki Consolidates Near Key Average
Maruti Suzuki India, a leader in the Indian auto market, has also seen a drop of about 30% from its peak and is now consolidating near its 20-day average. Positive daily signals suggest a potential breakout above ₹14,057, potentially lifting it to ₹15,180-₹15,980, a rise of about 22%. As of May 12, 2026, Maruti Suzuki's market value was ₹4.315 lakh crore, or roughly $47.61 billion. Its P/E ratio stands at 28.08, slightly above the industry average of 24.64. Maruti Suzuki reported a record quarterly revenue of ₹52,462.50 crores in Q4 FY26, a 28.21% year-on-year increase. However, its consolidated net profit fell 6.45% to ₹3,659.00 crores due to squeezed margins and higher costs. The profit margin dropped to 7.31% from 10.07% a year earlier. Despite these pressures, Maruti Suzuki achieved its highest total sales in FY24 (over 2 million units) and aims to double production to 4 million units by FY2030-31. The company is also exploring EVs, hybrids, and biofuels.
Persistent Challenges for Both Firms
Even with the positive technical outlook, significant challenges remain for both companies. Zomato faces ongoing concerns about the profitability of its food delivery model. Intense competition drives up customer acquisition costs and pressures restaurant margins. Heavy reliance on discounts can hurt brand loyalty and pricing, making sustainable profits difficult. While Blinkit has improved, Zomato's overall EBITDA margin remains under pressure. Regulatory reviews, especially concerning antitrust and the gig economy, also pose risks. For Maruti Suzuki, shifting to electric vehicles (EVs) is a major challenge. Its strong market position relies on traditional engine cars, facing an uncertain future due to stricter emission rules and changing customer tastes. Competition from EV-focused startups and other automakers pushing EVs adds pressure. Moreover, its Q4 FY26 results showed squeezed margins despite strong sales growth, indicating difficulty turning volume into profit. Analysts point out that Maruti Suzuki's P/E ratio is higher than the industry average. Investors are paying a premium for its market leadership, which could be threatened if its EV transition doesn't succeed.
Analyst Views Mixed with Market Caution
Looking beyond this single analyst, broader market sentiment is cautiously positive for Maruti Suzuki. Most analysts rate it a 'Buy' (40 out of 40 surveyed, with 34 recommending purchase), targeting an average 12-month price of ₹15,886.50, an upside of 21.24%. Some assessments, however, give Maruti Suzuki a 'Neutral' rating based on its current stock assessment. For Zomato, analyst consensus is a 'Strong Buy' with a ₹370 average 12-month price target, suggesting a 44.31% upside from its April 2026 price of ₹256.39. Yet, other analyses from April 2026 showed a trading price near ₹218 with a 12-month target of ₹255–290, reflecting a more conservative outlook on short-term drivers. Reaching profitability is a key focus for Zomato, with forecasts now expecting a ₹14.2 billion profit, though the breakeven point has been pushed back to 2025. These varied views show how technicals, company performance, and the wider economy influence investor sentiment for these two major Indian firms.