Zomato shares jumped 7.6% in a day on BSE Sensex gain

Zomato is therefore set to replace JSW Steel in the 30-share benchmark index as part of the upcoming recovery, which will come into effect on December 23.

In addition, its shareholders have approved raising INR 8,500 (approx. US$1 billion) through a qualified institutional placement (QIP).

Last week, global brokerage firm Morgan Stanley predicted that Zomato shares could double in value within five years.

Shares Zomato during intraday trade jumped 7.62% to INR 284.30 per piece on BSE today (November 25) following news of its inclusion in the BSE Sensex.

At the same time, Zomato will replace JSW Steel in the benchmark 30-share index. as part of the upcoming reconstruction, which comes into force on December 23.

Except, its shareholders approve raising INR 8,500 Cr (about $1 billion) through a qualified institutional placement (QIP).

However, the stock was marginally lower and was trading 5.47% higher at INR 278.60 at 12:35 pm.

This comes after the company ended its last three trading sessions in the red. The company’s stock opened higher today at INR 273 as against its previous close of INR 264.15.

Until 12:35 pm, 71 Cr Zomato share changed hands while the company’s market capitalization remained at INR 2,45,385 by then.

Last week global brokerage firm Morgan Stanley predicted that Zomato shares could double in value within five years or even in less than three years in an optimistic scenario. The company raised its target price to INR 355 per share from INR 278 per share earlier.

The brokerage firm maintained an “outperform” rating and a “top pick” status on the stock, highlighting Zomato’s growing share of the fast commerce space in the Indian retail market, strong performance in food delivery and quick commerce, deep balance sheet and large earnings pool. by 2030.

Another brokerage firm said in a June 25 research note that while the leading food technology company faces near-term challenges such as stiff competition and high expansion costs, its “deep balance sheet” and ability to withstand competitive pressures are key strengths.

On the financial front, the company saw 68.5% operating income rises to Rs 4,799 in Q2 FY25 from Rs 2,848 in September quarter of previous fiscal.

The company’s net profit fell 30% to Rs 176 in the September quarter from Rs 253 in the previous June quarter. The GOV of Blinkit’s fast commerce business grew 25% QoQ to Rs 6,132.