Zomato Stocks Rally 5% Ahead of BSE Sensex Inclusion; Strong Market Outlook

Food delivery giant Zomato shares rallied 5% in today's trading session, as the company is all set to enter the BSE Sensex. Zomato is going to replace JSW Steel on the BSE Sensex to be included in the list of 30 companies effective from December 23rd, 2024.

Zomato Stock Performance So Far in 2024

On 25th November 2024, Zomato shares opened on the National Stock Exchange (NSE) at Rs.273.25, registering a notable 5.20% gain during early trading hours. The stock has exhibited significant volatility in recent sessions, with a modest 2.08% rise observed in the previous trading day. Over the past six months, Zomato's shares have delivered impressive returns, climbing by a robust 50%. The year-to-date (YTD) performance is even more remarkable, with the stock skyrocketing by 122.75%. In terms of market capitalization, Zomato commands a substantial valuation of Rs. 2.42 lakh crore, with a strong standing in the market. Over the past 12 months, the shares have rallied by a staggering 143%, making it one of the top-performing stocks in the Indian tech and food delivery sectors.

Approval of Rs. 8,500 Crore QIP Fundraise

In addition to its Sensex inclusion, Zomato also received approval for its Rs. 8,500 crore Qualified Institutional Placement (QIP), aimed at strengthening its balance sheet and supporting future growth initiatives. This fundraising initiative follows an earlier board approval in October, designed to reinforce the company's financial standing amid an increasingly competitive market.

Despite its cash reserves taking a hit due to recent acquisitions, including a Rs. 2,014 crore purchase of Paytm's entertainment ticketing business, Zomato remains confident in its ability to grow. For the quarter ending September 2024, Zomato reported a Rs. 1,726 crore dip in its cash reserves, with its cash balance now at approximately Rs. 10,800 crore, down from Rs. 14,400 crore.

Q2FY25 Financial Report

In the July-September 2024 quarter, Zomato delivered exceptional financial performance with its strong growth. The company's revenue from operations surged to Rs. 2,848 crore in Q2FY25, showing a significant increase compared to Rs. 1,661 crore reported last year in the same quarters. The firm also reported a significant 69% rise in consolidated revenue, which climbed to Rs. 4,799 crore, due to increased consumer demand and effective business strategies. The company's net profit also saw a remarkable turnaround, registering a huge increase to reach Rs. 176 crore, compared to the same period in the previous year.