Zomato Touches All-Time High At INR 173.45 During Intraday Trading

Shares of food tech major Zomato jumped almost 5% to touch an all-time high of INR 173.45 during the intraday trading on the BSE on Friday (March 1) as they continued their upward trajectory amid consistently improving fundamentals and favourable market conditions.

However, the shares shed some of their gains later in the day. Despite this, the stock ended the week at a record closing price of INR 166.5 on the BSE.

Zomato shares earlier traded at this level in November 2021, when they reached a record intraday high of INR 169.1. Post that, the stock started slumping amid the rout in tech stocks globally and concerns about profitability.

By the end of July 2022, Zomato shares touched their all-time low at INR 40.5 amid worries about the impact of the acquisition of loss-making Blinkit on its bottom line.

However, the turnaround in Zomato’s fortune over the last three quarters has largely been driven by Blinkit’s growth. Despite muted growth in the company’s core food delivery vertical, the quick commerce arm has been witnessing significant growth.

In its last reported quarter – Q3 FY24 –  Blinkit posted its second consecutive contribution positive quarter. The startup’s revenue grew to INR 644 Cr in Q3 FY24 from INR 301 Cr in the year-ago period.

Blinkit’s gross order value jumped 103% year-on-year to INR 3,542 Cr in Q3.

On the other hand, Zomato posted its third consecutive profitable quarter in Q3. Its consolidated profit after tax grew to INR 138 Cr during the quarter from INR 36 Cr in the preceding quarter.

Analysts remain bullish on Zomato and expect the stock to continue its rally and move towards INR 200 level in the next few months.

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