Zomato Continues Its Rally: Shares Touch New Record High At INR 175.5

Shares of foodtech major Zomato touched a fresh all-time high at INR 175.5 during the early trading on the BSE on Monday (March 4).

The stock, which has been on an uptrend since mid-April last year, zoomed almost 5% during the intraday trading to touch the record high.

Even on last Friday, the stock surged almost 5% intraday to touch the previous all-time high of INR 173.45.

After its rally during the early hours today, the shares shed some of their gains to end the day 1.3% higher at a record closing price of INR 169.75 on the BSE.

Currently, Zomato is trading at a level last seen in November last year, when it had reached a record intraday high of INR 169.1.

Shares of Zomato have been on a rollercoaster ride since their listing in July 2021. Amid a slump in the broader tech ecosystem globally, Zomato lost 60% of its market capitalisation in 2022. Concerns about its losses and its acquisition of loss-making Blinkit further added to the woes of the shares of the Deepinder Goyal-led startup.

However, with the startup reporting its first profitable quarter in Q1 and then growing its profits every quarter, the market turned positive on the stock.

While its core food delivery vertical continues to witness muted growth, the improving fundamentals of its quick commerce arm Blinkit has made the D-Street bullish on the stock. 

Now, the company is also onboarding more brands and adding new categories on Blinkit to take on ecommerce giants Amazon and Flipkart.

In its last reported quarter, Q3 FY24, Zomato posted a profit after tax (PAT) of INR 138 Cr, registering a 283% jump quarter-on-quarter.

Its shares are currently trading over 37% higher year to date.