Zomato’s stock at the highest level since 5 December 2022.
During the past month, Zomato’s stock has climbed 27 per cent, while the benchmark index Sensex has seen only a 4 per cent rise during the same period.
Shares of online food delivery platform Zomato on Thursday hit their highest value in the last five months. On Thursday, the stock closed at Rs 65.70 a piece on the BSE, up over 3 per cent. However, on Friday, the stock ended marginally lower at Rs 65.41 on the BSE, down 0.34 per cent.
Zomato stock rose to Rs 66.46 a piece on BSE in Thursday’s trade, which was the highest price for shares in last five months since December 2022, when the stock had closed at Rs 65.5.
During the past month, the stock has rallied 27 per cent, while the benchmark index Sensex has seen only a 4 per cent rise during the same period. Brokerage houses also showed a positive outlook on its further growth potential.
Zomato shares have gained significantly, but they are still trading below the issue price.
Zomato made its debut in the Indian markets on 23 July 2021 at an issue price of Rs 76 per unit. Zomato’s stock has gained 7 per cent in the last one year. In 2023, this stock has seen a growth of more than 10 percent.
Last month, Motilal Oswal had said that Zomato is a big player in the food delivery market. It predicted that the company would achieve 29 per cent revenue compound annual growth rate (CAGR) between FY23-25. Despite facing strong competition, Zomato is expected to turn profitable by FY25 owing to its strong growth. The food delivery sector in India is set for rapid growth in the coming years, driven by increasing internet penetration, higher consumption and urbanisation, as stated by a domestic brokerage firm.
It also said that the growing usage and adoption of Zomato is expected to drive 13 per cent compound annual growth rate (CAGR) in monthly transacting users (MTU) from FY23-25.
Zomato’s food business achieved earnings before interest, tax, depreciation and amortization (EBITDA) in 1QFY23, and as a result, it is estimated that the company will turn profitable by FY25.
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