Respite For Zomato: After Months Of Turmoil, Shares Rally 58% In 20 Days

Shares of foodtech giant Zomato surged more than 4.05% on Tuesday (August 16) to close at INR 64.25 on the BSE.

The shares of the Gurugram-based company surged to an intraday high of INR 67.35, but pared some of the gains later. 

This represents a reversal of fortunes for Zomato, which was under intense selloff in the last few months. The stock has gained over 58% in about 20 days since touching its all-time low of INR 40.55 on July 27.

The shares of the Deepinder Goyal-led company have surged over 37% so far in August. Recently, Zomato said that it will achieve overall business adjusted EBITDA breakeven between the fourth quarter of the current fiscal and the second quarter of the financial year 2023-24 (FY24).

Shares of Zomato were on a downward spiral over the last few months due to market volatility and concerns over acquisition of loss-making quick commerce startup Blinkit. The end of the lock-in period for its pre-IPO investors in July after one year of listing also added to the woes. Investors such as Uber, Moore and Tiger Global offloaded their stake in the food delivery startup after the lock-in period expired.

Zomato’s market cap stood at INR 50,887.33 Cr at the end of trading on Tuesday.

Following the footsteps of Zomato, a good number of new-age tech stocks also grew marginally on Tuesday. Shares of logistics unicorn Delhivery rose 0.32% to INR 557.15 on the BSE after days of downward spiral. 

Fintech player PB Fintech, the parent company of Policybazaar, also rose 0.77% to INR 577.50, while shares of beauty ecommerce platform Nykaa grew marginally by 0.1% to INR 1,399.75.

Meanwhile, shares of Paytm declined for the second consecutive session, falling 0.48% to INR 783.40 on Tuesday. 

The benchmark index BSE Sensex rose 0.64% to close at 59,842.21 points on Tuesday, while Nifty50 also grew 0.72% to 17,825.25.