Zomato, the leading food delivery and restaurant aggregator platform, experienced a surge in its stock price on May 30 as a block trade of approximately 2,232,081 shares took place on the National Stock Exchange (NSE).
The stock was trading at Rs 67.95 in afternoon trade, marking a 1.3 percent increase.
The block trade was executed at a price of Rs 68.1, amounting to a transaction value of approximately Rs 15.2 crore. Details of the buyer or seller were not immediately known.
Analyst Recommendations
According to ratings from 26 analysts, Zomato has a ‘buy; call from 65 percent of them, while 15 percent suggested an ‘outperform’ rating. A smaller percentage of analysts recommended hold (4 percent), underperform (12 percent), and sell (4 percent).x
Catch up on all LIVE stock market updates here
Chart patterns for Zomato indicate a bullish trend, further supporting the positive sentiment around the stock.
The 5, 10, 20, 50, and 100-day simple moving averages all display a bullish trend.
Financial Performance
Zomato's consolidated net loss for the March quarter stood at Rs 188.2 crore, showcasing a significant improvement compared to a loss of Rs 359.7 crore in the same quarter of the previous year.
The company's revenue from operations reached Rs 2,056 crore, representing a 69.66 percent increase from Rs 1,211.8 crore in the corresponding quarter of the previous year.
Also Read: Jefferies’ long-only portfolios add Zomato, SBI Life, remove HDFC Life
Zomato's business, excluding quick commerce, achieved positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) during the March quarter.
This accomplishment was primarily driven by the food delivery segment, which generated Rs 78 crore of EBITDA.
Zomato aims to achieve positive adjusted EBITDA and profit after tax (PAT) on a consolidated basis, including quick commerce, within the next four quarters.
In a recent note, ICICI Securities said Zomato has demonstrated a sustained improvement in profitability of the food delivery business and a meaningful reduction in losses in the Hyperpure and quick commerce businesses.
“Also, the superior execution of cost control has resulted in the Zomato business (ex- Blinkit) turning profitable on an adjusted EBITDA level 2 quarters before guidance,” it added.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.