Zomato shares rally for fourth day in a row, gain 4% to hit record high
Upstox
2 min read • Updated: February 21, 2024, 12:42 AM
Summary
The food delivery stock traded higher in 8 of the 9 sessions since the release of its Q3 results. Zomato shares have surged from ₹144.1 levels to the current ₹160 per piece during this period, reflecting an 11% gain.
Online food delivery platform Zomato shares gained 4% on Tuesday to hit a fresh 52-week high for the second straight day. Extending the rally for fourth consecutive session Zomato shares touched a fresh record high of ₹163.8 apiece on NSE in intraday trade.
The spike in Zomato share prices was recorded after reports of the company's expansion plan for Blinkit. Zomato reportedly is eyeing to expand Blinkit, its quick commerce arm, with an entry into new segments and brands to compete with e-commerce giants like Amazon and Flipkart.
Zomato acquired the quick commerce platform for ₹4,447 crore in June 2022.
Zomato share prices have shown a positive momentum since the announcement of its quarterly results for the December quarter on February 8. The stock traded higher in 8 of the 9 sessions since the release of its Q3 results. Zomato shares have surged from ₹144.1 levels to the current price of ₹160 per piece during this period, reflecting an 11% gain.
The company reported a 47% YoY growth in gross order value at ₹12,886 crore in Q3FY24.
The online food delivery platform's adjusted revenue also grew by a strong 53% to ₹3,609 crore as against ₹2,363 crore in the year-ago period.
The company's adjusted EBITDA for the third quarter of FY24 stood at ₹125 crore, up from a negative ₹265 crore in the year-ago period.
Meanwhile, Blinkit reported ₹644 crore in revenue in the third quarter of FY24 compared to ₹301 crore in the year-ago period.
Blinkit’s contribution margin, as a percentage of Zomato's gross order value (GOV), further improved to 2.4% in Q3FY24 from 1.3% in the year-ago period. Blinkit's GOV in the December quarter grew 103% to ₹3,542, riding on the surge in order in festive season during the quarter.
The quick commerce platform has also posted an improvement in its average order value, with help from a higher mix of high ASP (average selling price) categories including electronics, festive needs, and home decor.
Blinkit's minimum order value jumped 14% YoY to ₹635 in Q3FY24.
Zomato shares closed 2.5% higher at ₹161.5 a piece on the NSE on Tuesday.