Zomato shares hit all time-high amid expectations of strong Q4 results

Shares of food delivery giant Zomato were in focus on Friday’s trade after the stock surged to its all-time high level to trade near ₹200 mark.

Zomato shares rallied during the day amid expectations of a strong growth in the quarter ending March 31, 2024 (Q4FY24).

After opening marginally higher on the NSE, the food delivery stock gained as much as 2.56% to its all-time high of ₹191.8 apiece. While the stock maintained its upward momentum for most of the session, it closed marginally lower from intraday peak at ₹190.8 apiece, up 2.03%.

The rally in the stock was witnessed due to expectations of strong growth in Q4FY24 backed by a significant rise in food delivery and volume growth in its grocery delivery arm Blinkit.

Experts predict a double-digit growth in food delivery business and gross merchandise value for Blinkit.

The company’s monthly active restaurant base grew by more than 20% year-on-year in Q3FY24. In February, Zomato’s chief executive officer Deepinder Goyal had said that the company expects food-delivery gross order value (GOV) to grow at over 20% year-on-year.

On the other hand, Blinkit’s GOV in Q3 grew 28% quarter-on-quarter.

The expectations for Q4 are high for Blinkit’s GMV and revenue growth as the company is likely to benefit from the quick expansion of newer stores and enhanced productivity at older stores.

Shares of Zomato have given stellar returns to investors in the last one year with a 268% surge in value while the stock has gained 54% so far this year (YTD). In the last three months the stock has gained over 42% and nearly 15% in the past month.