Zomato's market capitalization (m-cap): On Monday, Zomato became a part of the exclusive group of businesses with an m-cap of Rs 2 trillion. This occurs after Zomato's stock price surged 4% intraday on the BSE to a new high of Rs 232.
On the BSE, Zomato's market capitalization reached an intraday high of Rs 2.01 trillion. On the BSE, the fast commerce and meal delivery company's shares were trading 2% higher at Rs 227. The BSE Sensex, in contrast, increased by 0.23 percent to 80,708. Over the last week, Zomato's stock price has risen by 12%, outpacing the market's 1% increase in the benchmark index. From its June 4 low of Rs 146.85, which was reached last month, the stock has gained 58 percent of its value. With a positive commercial outlook, Zomato's market price has increased by 88 percent thus far in 2024. BSE Sensex, on the other hand, increased by around 12 percent.
Major meal delivery services Zomato and Swiggy have raised their platform fees to Rs 6 in important cities like Bengaluru and Delhi. Compared to the Rs 5 that the two sites were previously charging in these areas, this is a 20% increase.
Zomato anticipates significant development in its fast commerce and meal delivery operations in the meantime. Zomato's prospects are bright thanks to its growing customer base, increasing order frequency, growing network of delivery partners, opening of new outlets, unrealized potential, and operational leverage, according to brokerage company Geojit Financial Services.
Zomato has effectively expanded its business activities, propelled by expansion in all areas and enhanced financial gains. The company anticipates good success from its meal delivery business because of improvements in scale, a bigger client base, higher order frequency, and operational efficiency.
"The opening of new outlets is anticipated to boost the rapid commerce industry. Zomato's performance is expected to continue due to its growing customer base, expanding delivery partners, and substantial unrealized market potential, according to the brokerage business.
With a target price of Rs 230 per share, IIFL Securities rates Zomato as a "buy," noting that increased valuations will be supported by steady growth and profitable execution in the Quick Commerce (QC) and Food Delivery segments.
Financially speaking, JM Financial Institutional Securities analysts predict that the April–June quarter (Q1 FY25) will be a very strong quarter, sequentially, for quick commerce and food delivery businesses due to the country's heat waves and the IPL and Cricket World Cup. The brokerage company projects sequential gross order value (GOV) growth in the food delivery industry of 8% (up 25% year-over-year, in line with management expectations of 20% plus growth).
The trading business stated in BlinkIt that it anticipates sequential GOV growth of 22%, driven by a strong 20% increase in order volumes (which should be driven by an increase in MTU from 6.4 million to 7.5 million). Take-rates, which are fueled by ad revenue and consumer fees, might increase to 19.5 percent from 19.1 percent in Q4.
