Zomato’s stock at its highest level since 5 December 2022.
Over the last month, Zomato’s stock has climbed 27 per cent, while the benchmark index Sensex has only seen a 4 per cent increase during the same period.
Shares of online food delivery platform Zomato reached its highest value in the last five months on Thursday. The stock closed with a gain of over 3 per cent at Rs 65.70 per piece on BSE on Thursday. However, the shares marginally dropped to close at Rs 65.41 apiece, down 0.34 per cent, on BSE on Friday.
Zomato stocks surged to Rs 66.46 per piece on BSE in Thursday’s trade, marking the highest value of the shares in the last five months, since December 2022, when the shares closed at Rs 65.5 apiece.
Over the last month, the stock has climbed up by 27 percent, while the benchmark index Sensex has only seen a 4 percent increase during the same period. The brokerage houses also showed a positive outlook on its further growth potential.
The shares of Zomato have experienced a significant surge, but they are still trading below the issue price.
Zomato made its debut on Indian bourses on 23 July 2021, at an issue price of Rs 76 per unit. In the last year, Zomato’s stock has gained 7 percent. In 2023, the stock has seen a growth of over 10 percent.
Last month, Motilal Oswal had said that Zomato is a major player in the food delivery market. It predicted that the company will achieve a 29 percent revenue compound annual growth rate (CAGR) between FY23-25. Despite facing strong competition, Zomato is expected to become profitable by FY25, thanks to its robust growth. The food delivery sector in India is poised for rapid growth in the coming years, driven by increasing internet access, higher consumption, and urbanisation, as stated by the domestic brokerage firm.
It also said that Zomato’s increased usage and adoption are expected to drive a 13 percent compound annual growth rate (CAGR) in Monthly Transacting Users (MTU) from FY23-25.
Zomato’s food business achieved Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) breakeven in 1QFY23, and as a result, it is anticipated that the company will become profitable by FY25.
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