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  5. Zomato Q3 results: Check earnings preview and options strategy ahead of Q3 results

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Zomato Q3 results: Check earnings preview and options strategy ahead of Q3 results

Upstox
By Upstox News Desk

3 min read | Updated on January 20, 2025, 09:32 IST

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SUMMARY

Shares of Zomato took support at the 200 EMA on 13 January and are currently trading between 50 and 200 EMA. With the options market pricing an ±8% move ahead of the 30 January expiry, traders can monitor these levels and plan strategies accordingly.

Stock list

ZOMATO
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Experts anticipate Zomato's Q3 revenue to be between ₹5,300 crore and ₹5,650 crore, marking a 65-73% YoY increase.

Experts anticipate Zomato's Q3 revenue to be between ₹5,300 crore and ₹5,650 crore, marking a 65-73% YoY increase.

Food delivery major Zomato will announce its quarterly results on Monday, January 20, after market hours. The company is expected to post double-digit growth in revenues and net profit, helped by a robust performance in its food delivery and quick commerce businesses.

Experts anticipate Zomato's Q3 revenue to be between ₹5,300 crore and ₹5,650 crore, marking a 65-73% YoY increase and a 10-16% sequential rise. Festive season demand and year-end consumption are likely to fuel this growth. The company posted ₹4,799 crore in revenue in Q2FY25 and ₹3,288 crore in the same quarter last year.

Zomato’s net profit is expected to rise 55-70% YoY to ₹210 to 235 crore, with a sequential growth of 19-33%. The company reported a net profit of ₹176 crore in Q2FY25 and ₹138 crore in the December quarter of FY24.

During the earnings announcement, the investors will closely monitor critical metrics such as the gross merchandise value (GOV) for the food delivery segment and performance updates from the Blinkit business.

Ahead of the Q3 earnings announcement, Zomato shares are trading 0.5% lower at ₹247.5 per share on Monday, January 20. So far this month, Zomato shares are 10.5% lower, but have outperformed the benchmark NIFTY50 index with a return of 124.7% in the calendar year 2024.

Technical view

The technical structure of Zomato stands at a crucial juncture after taking support from its crucial 200-day exponential moving average. Traders can monitor the resistance and support zones of 50 and 200 EMA. Positionally, a close above or below this zone will provide further directional clues to traders and investors.

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Options build-up

Zomato’s 30 January ATM strike is set at ₹250, with both call and put options priced at ₹20. This pricing reflects traders' anticipation of a price movement of approximately ±8% from the 19 January closing price. To capitalise on this expected price swing ahead of the 30 January expiry, traders can explore strategies that align with volatility projections, such as straddles, to benefit from price movements.

Options strategy for Zomato

If you expect volatility to increase, a Long Straddle could be an effective approach. This strategy involves purchasing an at-the-money (ATM) call and put option with the same strike price and expiry. It yields profits when Zomato's price moves significantly in either direction, exceeding the ±8% range.
On the other hand, if you anticipate minimal volatility or price movement, a Short Straddle might be more suitable. This strategy requires selling both the ATM call and put options with the same strike price and expiry. It generates profits if Zomato's price remains relatively stable within the ±8% range.
For a deeper dive into Straddles, explore our UpLearn educational content for comprehensive insights. Interested in historical earnings price data? Join our community and connect with us—we’d be delighted to share it with you!

Disclaimer Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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