Amid Rally In Broader Market, Zomato Shares Hit Fresh All-Time High At INR 290.50

Shares of Zomato touched a fresh all-time high of INR 290.50 apiece on the BSE today (September 20) amid a rally in the broader market, with Sensex and Nifty50 hitting record highs.

The stock jumped more than 4% during early trading hours but shed some of the gains and was trading 3.01% higher at INR 287.25 apiece on the BSE at 12:03 PM.

More than 4.82 Cr Zomato shares had changed hands on the BSE and the NSE till the time of publishing this story, reflecting growing investor confidence in the stock.

The rally in Zomato’s share prices coincided with the 30-share Sensex breaching the 84,000 mark for the first time in its history. The index climbed nearly 1.3% to hit its fresh lifetime intraday peak of 84,248.69.

The NSE Nifty 50 also advanced 1.2% to touch a new all-time intraday high at 25,726.65. The record breaking run in the broader market came after the US Federal Reserve cut interest rates by half a percentage point for the first time in four years. The rates have been lowered to about 4.9%.

It is pertinent to note that brokerage firm JP Morgan recently maintained its “overweight” call on Zomato, raising its target price to INR 340 per share from INR 208 earlier. This would imply an upside potential of almost 22% from the stock’s close today.

Shares of Zomato have gained over 124% year to date on the back of the foodtech giant’s improving profitability and launch of several lucrative features, such as group ordering, ticket rescheduling, among others.

Zomato’s profit grew multifold to INR 253 Cr in Q1 FY25 from INR 2 Cr in the year-ago quarter. Revenue from operations also jumped 74% to INR 4,206 Cr during the quarter under review from INR 2,416 Cr in Q1 FY24.