Zomato, the prominent food delivery and restaurant aggregation company, has seen a rebound in its stock price. It is trading 1% higher as it nears the announcement of its Q3 FY25 results. This comes after a series of fluctuations, with the stock showing resilience despite recent setbacks.
Zomato's share price reached ₹251.40 during Monday’s early trade on the National Stock Exchange (NSE), reflecting a positive shift after a drop earlier in the session. The company's performance has sparked interest among investors, especially those looking to invest in stocks related to the growing food-tech industry.
Key updates surrounding Zomato's stock performance
While Zomato’s shares have faced volatility in recent weeks, with a 12% decline over the past 30 days, the company has shown remarkable growth over the past 12 months. The stock price has surged by over 91%, reflecting investor confidence in Zomato’s long-term prospects.
Zomato's strategic moves and investments
As part of its broader strategy, Zomato has made several significant moves that have positively impacted its stock performance. The company infused ₹500 crore into Blinkit, its quick-commerce arm, which has been a key driver of Zomato's diversified business model. Blinkit’s rapid expansion into the e-commerce sector has been a key focus, and this latest capital infusion strengthens Zomato’s position in this growing market.
Zomato’s entry into the SENSEX and other market highlights
Another significant achievement for Zomato was its inclusion in the SENSEX index in December 2024. This milestone saw Zomato replace JSW Steel in the benchmark index, marking a significant moment for the company’s market credibility. The SENSEX inclusion is expected to drive substantial institutional inflows into Zomato, as it has attracted attention from large investors.
Zomato's Q2 results show exceptional growth
Zomato’s Q2 FY25 results, released in late 2024, indicated strong performance, with a net profit of ₹176 crore, up from ₹36 crore in Q2 FY24. The company’s revenue also saw impressive growth, reaching ₹4,799 crore, compared to ₹2,848 crore in the same period last year. These results reflect the company’s efforts to drive expansion and improve profitability.
Zomato diversifies into health and wellness
In another strategic move, Zomato co-founder and CEO Deepinder Goyal launched "Continue", a new venture focusing on health tracking and mental wellness. This new initiative aims to provide users with a comprehensive health-tracking platform, potentially expanding Zomato’s reach beyond food delivery and into the wellness space.
By diversifying its business model, Zomato is positioning itself as a more comprehensive service provider, increasing its potential to attract different types of investors looking to invest in stocks in sectors beyond food delivery.
Zomato's performance amidst market volatility
The recent market fluctuations highlight the volatility of Zomato’s stock. This volatility can be impacted by various factors, including competition in the food delivery space, changing consumer preferences, and broader market trends.
Despite these challenges, Zomato has kept its stock above its 52-week low of ₹121.7. It is also trading near its 52-week high of ₹304.5, demonstrating strong performance amidst fluctuations.
Key insights
As of the most recent update, Zomato’s shares are trading 1% higher at ₹251.40, reflecting a positive sentiment as the company heads towards announcing its Q3 results. Despite recent volatility, the company’s performance over the past year remains strong, supported by strategic investments and acquisitions. This continues to make it an appealing option for those looking to invest in stocks in the food-tech and e-commerce sectors.
At 12:41 PM on Monday, Zomato Limited shares are trading 1.70% higher at ₹252.90 per share. This is compared to the previous close of ₹248.75 per share on the National Stock Exchange (NSE).
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