Zomato’s shares experienced a 12% surge in value following the announcement of its first-ever quarterly profit. The company reported a net profit of ₹2 crore and recorded revenue amounting to ₹2,416 crore during the quarter. This favorable financial performance has led to an increase in investor confidence, resulting in a significant rise in Zomato’s stock price.
Zomato’s share price witnessed a significant increase of 12% during early trade after the company reported its first-ever quarterly profit. The stock opened at ₹89, rising from yesterday’s closing price of ₹86.22. It further surged to reach a high of ₹98.39 in the morning trade, reflecting a 12% jump. At the time of writing, Zomato shares were trading at ₹96.23, showing a gain of ₹10 or 11.61%.
Zomato announced its first-quarter (Q1) earnings for FY24, reporting a net profit of ₹2 crore, a considerable improvement compared to the previous year’s loss of ₹186 crore. The company’s revenue also witnessed a significant increase, reaching ₹2,416 crore as compared to ₹1,414 crore in the same quarter the previous year.
The food delivery platform Zomato made its debut on the stock exchanges in July 2021, with an initial public offering (IPO) listing at ₹115 against an issue price of ₹76. Despite the initial listing gains, the stock has been trading below the listing price since then.
Various new-age internet companies, including Zomato, Policybazaar, Nykaa, Makemytrip, among others, have been in the spotlight due to their IPO launches and subsequent listing on the NSE and BSE.
Zomato’s positive Q1 results and strong outlook have earned praise from investors, leading to an increase in the target price by analysts. Emkay’s latest report retains a “BUY” recommendation with a target price of ₹110, up from the previous ₹90, based on the improved revenue projections and better margin trajectory.
Please note that the views and recommendations mentioned in the article are of individual analysts or broking companies and not of ShreeStar. Investors are advised to consult certified experts before making any investment decisions.