Zomato Shares Jump Nearly 20% In Best Trading Day

Shares of online food delivery platform Zomato on Tuesday jumped nearly 20 per cent and had its best session

Zomato Shares Jump Nearly 20% In Best Trading Day

Zomato's stock had its best day after strong quarter

New Delhi:

Shares of online food delivery platform Zomato on Tuesday jumped nearly 20 per cent and had their best session, a day after the Ant Group-backed company recorded more orders and narrowed its losses in the June quarter.

The stock, which lost nearly 60 per cent from its debut price a year ago, climbed 19.96 per cent to settle at Rs 55.60 -- its upper circuit limit -- on the BSE, bouncing from record lows seen last week.

The company's market valuation climbed by Rs 7,283.52 crore to Rs 43,777.52 crore on the BSE.
On the NSE, it zoomed 19.97 per cent to Rs 55.55. 

In traded volume terms, 803.27 lakh shares were traded on the BSE and over 52.88 crore shares on the NSE during the day. 

Zomato on Monday said its consolidated net loss in the first quarter of the current financial year almost halved to Rs 186 crore due to higher income.

The Gurugram-based company, which operates in more than 1,000 towns and cities in India, posted a quarterly loss of 1.86 billion rupees ($23.67 million) on Monday, compared with a loss of 3.56 billion rupees last year.

Revenue from operations, mostly from its mainstay food delivery and related fees it charges restaurants for using its platform, rose 67 per cent to 14.14 billion rupees in the three months ended June 30.

Gross order value - or the total value of all food delivery orders on Zomato's platform - rose 41.6 per cent, and the company said its adjusted EBITDA for the food delivery unit broke-even for the quarter.

"We like Zomato for its long runway for growth, steady market share gains, and fast pivot to profitability, despite challenges – slower growth than in the last two years and heavy investments in Quick Commerce, where profitability is not in sight in the near term," Morgan Stanley analysts said.

The brokerage resumed coverage of the stock with an "overweight" rating and price target of 80 rupees.

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