Zomato Hits Fresh All-Time High At INR 298.05 Amid Broader Market Rally

Shares of foodtech major Zomato continued their four-day winning streak and climbed over 2% in early trading hours today (September 23) to reach a fresh all-time high at INR 298.05 apiece on the BSE.

While the stock jumped as much as 2.5% to hit its lifetime intraday peak, it pared some of the gains later and by 3:01 PM, it was trading at 294.75 apiece on the BSE, up 1.4% from the previous close.

The surge in share prices of Zomato came on the back of a rally in the broader market, with Sensex and Nifty 50 also touching their respective all-time intraday highs. 

 While the 30-share BSE Sensex climbed over 0.44% to hit its all-time intraday high of  84,922.72, the NSE Nifty 50 advanced 0.57% to touch its lifetime intraday peak of 25,936.90.

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 17% from the stock’s previous close.

Shares of Zomato have rallied nearly 140% on a year-to-date basis on the back of the company’s improving profitability and launch of several enticing 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.

On the flip side, Zomato has been facing mounting pressure from GST authorities in the country. Last week, West Bengal GST authorities slapped the company with a fresh goods and services tax (GST) demand and penalty order of over INR 17.70 Cr. 

The same month, the foodtech major had received an  INR 9.85 Cr GST notice from the Assistant Commissioner of Revenue, Government of West Bengal.

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