With a 102% increase this year, the market value of Zomato Ltd.’s food delivery platform’s shares has surpassed Rs 1 lakh crore, a record set on January 19, 2022. On November 6, Zomato’s opening trading saw a 5 percent increase, reaching a nearly 22-month high of Rs 121.90. The company’s second consecutive quarter of profit during the July-September period thrilled brokerages worldwide, leading several of them to raise their price estimates for the stock.
Zomato shares were up over 2 percent at Rs 118.60 on the NSE at 09.28 am. On the BSE, the stock reached a high of Rs 121.90, a level last touched on January 22, 2022. Following the release of the company’s Q2 earnings on November 3, shares of the business also finished 8.3 percent higher on the NSE.
Zomato’s revenue increased by 71% year over year to Rs 2,848 crore, while the company reported a net profit of Rs 36 crore. In the same time last year, the company reported revenue of Rs 1,661 crore and a net loss of Rs 302 crore. The expansion occurs when the e-commerce industry struggles with inflation and slowing demand.
Zomato’s revenue growth was significantly stronger than anticipated, according to Nuvama Institutional Equities, which increased its price objective for the stock by almost 27% to Rs 140. The company noted that all businesses were continuing to grow at full speed.
The company maintained its “buy” call on the stock in a note, saying, “Strong growth across business gives us confidence in Zomato’s ability to maintain its lead in food delivery as well as gain market share in quick commerce.”
