Stock Market

Zomato share price : Zomato Share Price Rises 12% After First-Ever Quarterly Profit

Zomato share price : In a significant development for the food delivery company Zomato, its share price soared by 12% in early trade following the announcement of its first-ever quarterly profit. The news has garnered widespread attention in the financial markets and among investors. This article will delve into the details of Zomato’s recent performance, explore the reasons behind its success, and analyze the company’s prospects for the future.

1. Zomato’s Impressive Quarterly Profit

Zomato, one of India’s leading food delivery platforms, achieved a significant milestone in its financial performance for the first quarter of FY24. The company reported a remarkable net profit of ₹2 crore, marking a notable turnaround from a loss of ₹186 crore during the same period last year. This spectacular improvement in earnings showcases Zomato’s potential for growth and profitability.

2. Steady Rise in Zomato share price

The positive financial results had an immediate impact on Zomato share price. The stock opened at ₹89, a notable increase from the previous day’s closing price of ₹86.22. In the morning trade, the share price surged further to reach ₹98.39, representing a remarkable 12% jump. At the time of writing, Zomato shares were trading at ₹96.23, up ₹10 or 11.61% from the previous day’s closing price.

3. Revenue Growth and Comparison

Zomato’s revenue for the quarter saw a significant uptick as well, reaching ₹2,416 crore, compared to ₹1,414 crore during the same period the previous year. This indicates a remarkable growth rate in the company’s business operations. The steady rise in revenue also reflects the increasing popularity of food delivery services, especially in the wake of the COVID-19 pandemic.

4. Zomato’s Journey in the Stock Market

Zomato share price were listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in July 2021, starting at ₹115.00 against the issue price of ₹76. The company witnessed strong initial enthusiasm from investors, driving its share price higher. However, it faced challenges in sustaining the listing gains, and the stock has been trading below the listing price since then.

5. Zomato’s Market Competition

Zomato is part of a wave of new-age internet companies that have made headlines with their initial public offerings and stock listings. Other notable players in the same category include Policybazaar, Nykaa, Makemytrip, and more. These companies have attracted considerable investor interest due to their disruptive business models and potential for future growth.

6. Expert Outlook and Projections

Analysts and experts have responded positively to Zomato’s performance and future outlook. According to the latest Emkay report, Zomato share price expects its adjusted revenue to grow at a rate of over 40% for the next few years, while also maintaining profitability. In light of the strong first-quarter results and positive projections, Emkay has increased the revenue estimates for FY24-26E by 13-22%, with a more optimistic margin trajectory. Consequently, they have reiterated their “BUY” recommendation and set a target price of ₹110 per share.

Conclusion

Zomato’s recent financial performance and its achievement of its first-ever quarterly profit have undoubtedly made a strong impression on the market. The surge in share price and the positive outlook from experts indicate a potential upward trajectory for the company. However, it remains essential for investors to conduct their due diligence and stay informed about any developments that could impact the company’s future prospects.

For more updates follow Allinfohere

FAQs

Is this the first time Zomato has reported a quarterly profit?

Yes, this is the first time Zomato has posted a net profit in its quarterly earnings.

How did the market respond to Zomato’s quarterly profit announcement?

The market responded positively, with Zomato’s share price rising by 12% in early trade.

What is Zomato’s growth outlook for the coming years?

Zomato expects its adjusted revenue to grow at over 40% for at least the next couple of years and remain profitable going forward.

How did Zomato’s share price perform after its listing in 2021?

Zomato’s shares initially witnessed a strong surge after listing but have been trading below the listing price since then.

Which other companies are competitors of Zomato in the market?

Some notable competitors of Zomato include Policybazaar, Nykaa, and Makemytrip, among others.

Neha Pandey

Recent Posts

Chaitra Navratri 2024 : नवरात्रि के सातवे दिन माँ कालरात्रि को प्रसन्न करने के लिए ऐसे करें पूजा

नवरात्रि के नौ पवित्र दिनों में से प्रत्येक दिन एक अलग देवी को समर्पित होता…

8 months ago

Kamada Ekadashi 2024 :कामदा एकादशी पर पैसे की तंगी से छुटकारा पाने के लिए कामदा एकादशी के उपाय

कामदा एकादशी, हिंदू धर्म में एक महत्वपूर्ण व्रत और उत्सव है। यह भगवान विष्णु को…

8 months ago

October Amavasya 2024 :आश्विन अमावस्या 2024 कब है, तिथि और सुख-समृद्धि प्राप्त करने के उपाय

आश्विन अमावस्या, हिंदू धर्म में एक महत्वपूर्ण दिन माना जाता है. यह हिंदू पंचांग के…

8 months ago

Mata ki Chunari : देवी मां की पूजा में क्यों चढ़ाई जाती है चुनरी ? जाने चुनरी चढ़ाने से होने वाले 6 लाभ

हिंदू धर्म में देवी मां की पूजा का विशेष महत्व है। पूजा की विधि विधान…

9 months ago