Zomato, the popular food delivery platform, witnessed a remarkable surge in its share price, climbing 12% during early trade today. This remarkable upswing comes just a day after the company unveiled its inaugural quarterly profit. The opening price of Zomato shares stood at ₹89, surpassing the previous day’s closing figure of ₹86.22. As the morning session unfolded, the Zomato stock escalated even further, reaching an impressive ₹98.39, marking a substantial 12% leap. As of the time of reporting, Zomato shares were actively trading at ₹96.23, showcasing a substantial increase of ₹10 or 11.61%.
In an encouraging financial update, Zomato disclosed its Q1 earnings for the fiscal year 2024. The company revealed a net profit of ₹2 crore, marking a significant turnaround from the loss of ₹186 crore recorded in the same period the previous year. The revenue performance was equally impressive, surging to ₹2,416 crore in contrast to the ₹1,414 crore reported in the previous year.
Zomato’s journey on the stock exchanges commenced in July 2021, with shares being listed at ₹115.00 against the issue price of ₹76.
Despite the initial excitement, the stock’s trajectory took a different course. Following its listing on the NSE and BSE in July 2021 through an initial public offering, Zomato shares commenced trading at ₹115, a figure higher than the issue price of ₹76. However, the subsequent trading period witnessed the stock’s value gradually descending below the listing price.
In the evolving landscape of new-age internet companies, numerous players have attracted attention by initiating their public offerings and listing shares on the NSE and BSE. Notable entities in this category include Policybazaar, Nykaa, Makemytrip, among others.
Market experts have weighed in on Zomato’s performance. According to the latest Emkay report, “Zomato expects adjusted revenue to grow at over 40% for at least the next couple of years and remain profitable going forward. Considering the Q1 beat and strong outlook, we have increased FY24-26E revenue by 13-22%, with better margin trajectory. We retain BUY with TP of Rs110 (earlier Rs90).”
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