Zomato Jumps Over 5% Intraday To Touch New Record High

SUMMARY

After the intraday rally, shares of Zomato shed some of the gains to end the trading session at a record closing price of INR 182.6 on the BSE

Zomato gained today even as the broader market remained volatile and benchmark indices Nifty50 and Sensex ended in the red

The investor sentiment has turned positive on the foodtech giant after it reported three consecutive profitable quarters in FY24. The stock has gained 47.6% year to date

Shares of foodtech major Zomato jumped almost 5.4% during the intraday trading on the BSE on Tuesday (March 26) to touch a new all-time high at INR 183.5.

The stock also witnessed a steady rise over the last three sessions of the previous week and ended Friday’s close at INR 174.1, slightly below its earlier record high of INR 175.5 on March 4.

After today’s intraday rally, Zomato shares shed some of the gains to end the trading session at a record closing price of INR 182.6 on the BSE.

Zomato gained today even as the broader market remained volatile and benchmark indices Nifty50 and Sensex ended in the red.

In contrast to Zomato’s gains, Zaggle fell over 5% to INR 277.7 and DroneAcharya nosedived almost 6% to 133.95 on the BSE. Several other new-age tech stocks, including Paytm and Yatra, ended today’s trading session in the red.

At the current level, the shares of Zomato are trading almost 60% higher than their listing price of INR 115.

It is pertinent to note that last week, Zomato found itself involved in a controversy following the announcement of the launch of a new delivery fleet, ‘Pure Veg Fleet’. It also announced the launch of a new mode on its app, called ‘Pure Veg Mode’, for customers with 100% vegetarian dietary preference.

Following severe backlash on social media platforms, the startup reversed its decision to introduce a green uniform for delivery partners designated for the new fleet.

However, shares of Zomato remained unaffected with the debate. Meanwhile, brokerage Jefferies also included Zomato in the list of its “top picks” for the next five years.

The brokerage sees a 2.5X upside in Zomato’s share price and has set a price target of INR 400 by March 2029.

After reporting its maiden profitable quarter in Q1 FY24, Zomato saw its net profit grow in the following two quarters. This has turned investors positive on the stock, resulting in its price more than doubling in 2023.

Zomato shares have also gained 47.6% year to date.