Zomato Shares Fall 4% During Intraday

SUMMARY

The fall in Zomato’s share price led to a decline in its market capitalisation to INR 2,24,032 Cr

More than 2.28 Cr Zomato shares traded hands by 11:58 AM

On a year-to-date (YTD) basis, the stock declined nearly 16% at the current market price

Shares of foodtech giant Zomato plunged nearly 4% to INR 229.35 during the intraday trading session on the BSE today (February 4). 

With a drop in its share price, its market capitalisation declined to INR 2,24,032 Cr with more than 2.28 Cr shares traded hands by 11:58 AM. 

On a year-to-date (YTD) basis, the stock declined nearly 16% at the current market price. 

At the time of writing, Zomato recouped some of its losses and was trading nearly 2.5% low at INR 232.05  apiece on BSE. 

The fall in Zomato’s share price is in contrast with the rise in benchmark indices today. 

Zomato’s consolidated net profit slumped 57.2% to INR 59 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 138 Cr in the year-ago quarter due to a slowdown in the food delivery segment and rising competition in quick commerce.

After the company disclosed its Q3 financials, Brokerage ICICI Securities said Zomato may have lost market share in the food delivery segment in the third quarter (Q3) of the financial year 2024-25 (FY25) amid rising competition. ICICI Securities attributed this potential decline to Zomato’s rivals scaling up 10-15 minute food delivery business faster. 

The company however set its eyes on scaling up its quick food delivery business soon. In a letter to the shareholders published alongside Q3 FY25 numbers, Zomato founder and CEO Deepinder Goyal said that data shows that bringing down delivery time creates incremental demand for restaurant food and leads to “meaningful expansion” of demand on the platform. 

Zomato closed the trading session yesterday(February 3) at INR 238.25 apiece on the BSE. The stock has ended in the green in four out of the last five trading sessions.

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