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  4. Zomato shares extend rally for second day, zoom 5% to hit all-time high

Zomato shares extend rally for second day, zoom 5% to hit all-time high

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2 min read • Updated: March 1, 2024, 5:34 PM

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Summary

Zomato shares have rallied over 200% in the last 12 months. The stock has gained more than 20% since the release of its December quarter results on February 8.

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Zomato shares zoom 5% to hit all-time high of ₹173.5 per share

Shares of Zomato continued the rally for the second straight day on Friday and zoomed nearly 5% to hit an all-time high of ₹173.5 apiece on NSE riding on a positive sentiment around the company's growth following impressive quarterly earnings for the December quarter.

The rally in the Zomato share price could be aided by the investors’ interest in the stock over the future growth prospects after the food delivery giant remained profitable for the third straight quarter in Q3FY24, according to experts.

Zomato shares have risen by over 200% in the last 12 months. The stock has gained more than 20% since its December quarter results were release on February 8. On a year-to-date basis, Zomato shares have gained over 30%.

Over one crore shares of the food delivery giant recently changed hands in a block deal. The value of the deal was estimated at around ₹158 crore.

Zomato's December quarter consolidated net profit stood at ₹138 crore. Its revenue on the consolidated basis for the said three months of the current financial year came in at ₹3,288 crore, as against ₹1,948 crore a year ago. Total expenses rose to ₹3,383 crore for the period, compared to ₹2,485 crore a year ago.

Zomato's revenue from operations in Q3FY24 rose 69% year-on-year to ₹3,288 crore. Its adjusted EBITDA, including its quick-commerce business Blinkit, was positive for the third quarter at ₹125 crore, compared with ₹41 crore in Q2FY24.

The GOV (gross order value) of the food delivery business in the third quarter rose by 27%.

Blinkit's losses have narrowed, and the company's management expects it to meet the guidance of Adjusted EBITDA break-even on or before Q1 of the next financial year. The company said its quick commerce revenues rose 114% to ₹644 crore year-on-year.

Zomato is a significant player in the Indian startup ecosystem. Founded in 2008 by Deepinder Goyal and Pankaj Chadha, Zomato has grown rapidly, expanding its services to multiple cities in India and abroad.

At close, Zomato shares were at ₹166.80 apiece, up 1%, on NSE.