Zomato Stocks Surge 5% Before BSE Sensex Inclusion: Positive Market Forecast

Food delivery giant Zomato’s stocks saw a 5% surge in today’s trading session, as it gears up to join the BSE Sensex. Zomato will be replacing JSW Steel on the BSE Sensex and become one of the 30 listed companies starting December 23, 2024.

As of November 25, 2024, Zomato shares opened at Rs. 273.25 on the National Stock Exchange (NSE), showing an impressive 5.20% increase in early trading hours. The stock has been quite volatile recently, with a modest 2.08% gain in the previous trading day. Over the past six months, Zomato shares have climbed by a strong 50%, and the year-to-date performance is even more impressive at 122.75%. With a market capitalization of Rs. 2.42 lakh crore, Zomato holds a significant position in the market. Over the last 12 months, the shares have soared by an impressive 143%, making it one of the top performers in the Indian tech and food delivery sectors.

Apart from its BSE Sensex inclusion, Zomato has also received approval for a Rs. 8,500 crore Qualified Institutional Placement (QIP) to enhance its financial position and support future growth strategies. This fundraising initiative follows a previous board approval in October, intended to strengthen the company’s finances amidst stiff competition in the market.

Despite recent acquisitions impacting its cash reserves, including a Rs. 2,014 crore acquisition of Paytm’s entertainment ticketing business, Zomato remains optimistic about its growth prospects. In the quarter ending September 2024, Zomato reported a Rs. 1,726 crore reduction in its cash reserves, with the balance now standing at around Rs. 10,800 crore, down from Rs. 14,400 crore.

Zomato’s financial performance in Q2FY25 was remarkable, with revenue from operations soaring to Rs. 2,848 crore, a substantial increase compared to the same period last year. The company also reported a 69% rise in consolidated revenue to Rs. 4,799 crore, driven by increased consumer demand and effective business strategies. Zomato’s net profit witnessed a significant turnaround, reaching Rs. 176 crore, showcasing its strong performance in the market.