27 February 2024

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Zomato

After Q1 earnings, Zomato’s stock price increases by 12% on its first-ever quarterly profit.

After the meal delivery service reported its first-ever quarterly profit yesterday, Zomato’s share price increased 12% in early trade today. When compared to yesterday’s closing price of 86.22, the Zomato stock opened at 89. The Zomato share price increased further in the morning trade, rising 12% to a high of 98.39. Zomato shares were trading at 96.23 at the time of writing this text, up 10 or 11.61%.

The food delivery platform Zomato on Thursday announced its Q1 earnings for FY24. The company reported a net profit of ₹2 crore against a loss of ₹186 crore (YoY). The revenue of the firm was up at ₹2,416 cr versus ₹1,414 crore (YoY).

Zomato shares were offered on the stock exchanges in July 2021 for 115.00 against a 76.00 issue price.

Zomato stock price increases know more:

In July 2021, following the launch of an IPO, Zomato shares got listed on the NSE and BSE. In comparison to their issue price of 76, Zomato shares are priced at 115. Despite this, the stock couldn’t manage to hold onto its listing gains, and it has been trading below that amount ever since.

Zomato

Since several of the new-generation online businesses started their initial public offerings and listed their shares on the NSE and BSE, they have gained attention. In the same category as these businesses are Policybazaar, Nykaa, Makemytrip, etc.

“Zomato expects an ongoing profit and adjusted revenue growth of over 40% for at least the upcoming two years. We have boosted FY24-26E revenue by 13-22%, with higher margin trajectory, in light of the Q1 beat and positive outlook. The most recent Emkay report stated, “We maintain BUY with TP of Rs 110 (previously Rs 90).”

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