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Zomato breaks Rs 300 barrier, sets new record high

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Last Updated : Dec 05 2024 | 2:50 PM IST

Zomato jumped 4.51% to Rs 299.20, driven by strong investor sentiment and positive industry trends.

The stock hit a record high of Rs 304.50 today, buoyed by investor optimism in both the food delivery and quick commerce businesses. With this surge, Zomato is on the brink of crossing the Rs 3 lakh crore market capitalization mark.

Positive financial results from rival Swiggy have strengthened investor optimism in the entire food delivery sector, benefiting Zomato as well.

The stock is set to be included in the BSE Sensex from the end of December. Meanwhile, a leading global brokerage firm reaffirmed its 'outperform' rating on Zomato, with a target price of Rs 370. The firm cited the company's strong position in the quick commerce segment and its dominant market share as key drivers.

Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.

Zomatos consolidated net profit surged 388.89% to Rs 176 crore on 68.5% jump in revenue from operations to Rs 4,799 crore in Q2 FY25 over Q2 FY24.

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First Published: Dec 05 2024 | 2:41 PM IST

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