In a remarkable turn of events, Zomato, the renowned food delivery platform, witnessed a second consecutive surge in its stock prices during Friday’s trading session. The stock reached an unprecedented high of ₹173.50, marking a nearly 5% increase from the previous day’s closing value of ₹165.50. This surge, despite ongoing uncertainties about the company’s strategic decisions, signals a positive shift in investor sentiment.
Industry experts attribute this change to Zomato’s consistent outperformance in quarterly expectations and a growing consumer affinity towards its business model. Sachin Dixit, an internet research analyst at JM Financial, notes that investors are recognizing Zomato’s efforts, setting the platform apart from its competitors.
Analyst Karan Taurani from Elara emphasizes Zomato’s “consistent earnings improvement” and its clear commitment to growth targets, distinguishing it from competitors that lack a clear path to profitability.
Market experts are optimistic about Zomato’s continued dominance, projecting it to maintain over half of the market share in the food delivery sector, outshining its IPO-bound competitor, Swiggy. The strategic acquisition of Blinkit, Zomato’s quick-commerce business in 2022, is expected to contribute significantly to the company’s growth, aiming for EBITDA positivity in the next fiscal year.
Underlining Zomato’s impressive Q3 results, the company reported a net profit of ₹138 crore for the quarter ending December 31, 2023 – a substantial improvement from the ₹347 crore net loss in the same period the previous fiscal year. The consolidated revenue from operations for Q3 reached ₹3,288 crore, showcasing significant growth from ₹1,948 crore in the corresponding period last year, according to Zomato’s regulatory filing.
