Zomato share price falls as 2% equity changes hands via block deals on BSE

Shares of Zomato were down 2 per cent at Rs 257.10 on the BSE in Tuesday’s intra-day trade after 2 per cent equity of food aggregator changed hands via block deals. In the past two trading days, the stock declined 8 per cent from its record high level of Rs 280 touched on Monday, August 19.

At 09:15 am; as many as 19.19 crore equity shares representing 2.17 per cent of total equity of Zomato changed hands on the BSE, the exchange data shows. Meanwhile, till 09:59 am; a combined 25.6 million shares or 2.9 per cent equity of Zomato have changed hands on the NSE and BSE. The names of the buyers and sellers were not accessible immediately.

 

According to reports, Antfin Singapore will likely sell shares in Zomato worth $408 million at floor price of Rs 251.68 per share via block deal. It holds 4.24 per cent stake in the food delivery platform at the end of June 2024 quarter, the shareholding pattern data shows.

Earlier, on March 6, 2024, Antfin Singapore had offloaded 176.4 million shares of Zomato at an average price of Rs 160.26 per share on the BSE with the Morgan Stanley Asia (Singapore) Pte. buying 56.81 million shares out of the total selling offer.

Meanwhile, in past one month, Zomato has outperformed the market by surging 17 per cent, as compared to 0.5 per cent gain in the BSE Sensex. It has bounced back 91 per cent from its June month low of Rs 146.85 on the BSE. In past one year, it has zoomed 190 per cent, and skyrocketed 591 per cent from its all-time low level of Rs 40.55 on July 27, 2022.

Zomato operates a B2C technology platform that provides customers with a seamless, on-demand solution to search and discover local restaurants, order food, and have it delivered quickly. Blinkit, the company's arm is a quick commerce marketplace providing on-demand delivery of thousands of products across multiple categories in less than 15 minutes.

Zomato’s net profit in June 2024 (Q1FY25) quarter rose sharply to Rs 253 crore from Rs 2-crore net profit reported last year. Revenue for the restaurant aggregator rose by nearly 74 per cent year-on-year (YoY) to Rs 4,206 crore.

All verticals of Zomato saw sequential growth with Food Delivery (FD) growing 11.7 per cent, Hyperpure 27.4 per cent, Quick Commerce 22.5 per cent, and Going Out 2.2 per cent.

In Q1FY25, FD business achieved adjusted EBITDA margin of 3.4 per cent (as a  per cent of gross order value or GOV). The company expects this to increase to 4-5 per cent adjusted EBITDA margin over the medium term.

The quick commerce business achieved Adjusted EBITDA break-even in the month of March 2024 and the company expects margins to increase to 4-5 per cent in stable state. 

”Our Going-out and B2B supplies business (Hyperpure) are still in nascent stages of market penetration and growth. We expect to achieve similar Adjusted EBITDA margin in these businesses as well over the long term,” Zomato said in its FY24 annual report. The company is profitable from FY24 onwards and continues to build its four key businesses with a focus on both growth and overall profitability, it added.