Zomato shares are up 12% after the company reported its first-ever quarterly profit, with a net profit of 2 crore and revenue of 2,416 crore.
The share price of Zomato climbed 12% in early trading Wednesday, a day after the meal delivery firm reported its first-ever quarterly profit. The Zomato stock began at 89, compared to yesterday’s close of 86.22. In the morning trade, the Zomato share price rose further to 98.39, a 12% increase. Zomato shares were trading at 96.23 at the time of writing, up $10, or 11.61%.
Zomato, a meal delivery company, released its Q1 profits for FY24 on Thursday. The firm recorded a net profit of 2 crore, compared to a loss of 186 crore (year on year). The company’s revenue increased by 24% year on year to 2,416 crore.
Zomato shares will be launched on the bourses in July 2021 at 115.00, up from the issue price of 76.
After an initial public offering, Zomato shares will be listed on the NSE and BSE in July 2021. Zomato shares were listed at 115, compared to an issue price of 76. The stock, however, was unable to maintain its listing gains and has been trading below the offering price since then.
Since several of them filed initial public offerings and issued shares on the NSE and BSE, new-age online businesses have been in the spotlight. Other firms in the same area include Policybazaar, Nykaa, Makemytrip, and more.
“Zomato expects adjusted revenue to grow at least 40% over the next couple of years while remaining profitable.” Given the Q1 beat and the positive forecast, we upgraded FY24-26E sales by 13-22%, with a stronger margin trajectory. “We maintain BUY with a target price of Rs110 (previously Rs90),” according to the most recent Emkay report.