Shares of food delivery platform Zomato surged 8 per cent to Rs 261.50 on the BSE in Thursday’s intra-day trade amid heavy volumes in an otherwise lacklustre market.
JPMorgan stated that Zomato is leading rapid retail consumer transformation through convenience-focused Quick Commerce. The company is expanding its presence across all metros after successfully proving the model in NCR.
This scale should help Zomato drive monetization through channel margins and ad spending. The global brokerage firm expects it to lead the disruption of modern trade and e-commerce.
The global brokerage has raised its forecasts for FY25-27 by 15-41 per cent. Additionally, Zomato has expanded its “Going Out” business by integrating core dining with a new ticketing service.
Recently, One97 Communications-operated Paytm transferred its events and movie ticketing business to Zomato. The transaction was completed earlier in August.
According to the agreement, Zomato was set to acquire the entire stake held by OCL in Orbgen Technologies Private Limited (OTPL) and Wasteland Entertainment Private Limited (WEPL) through a share purchase transaction, making OTPL and WEPL wholly-owned subsidiaries of Zomato.
The online food delivery giant reported a substantial year-on-year growth in its consolidated net profit, reaching Rs 253 crore for the quarter ended June 30, 2024.
For Blinkit, the company’s quick commerce arm, revenues surged 145 per cent year-on-year to Rs 942 crore, though adjusted EBITDA for the same period stood at Rs -3 crore.
The gross order value (GOV) across Zomato’s B2C businesses (food delivery, quick commerce, and Going Out) grew 53 per cent year-on-year to Rs 15,455 crore.
Zomato’s shares have rallied by 160 per cent over the past year and have increased by 105 per cent year-to-date.
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