On Monday, September 23, during intraday trading on the BSE, the price of Zomato shares increased by 2.5 percent, setting a new all-time high of ₹298.05. At ₹296.90, the stock ultimately closed 2.13 percent higher, maintaining gains for the fourth straight day.
Why does Zomato’s stock rise? Several international brokerage firms have increased their target prices for the stock in recent months, including JPMorgan, CLSA, and Jefferies.
They have also voiced optimism about the company’s rapid commerce business, Blinkit. Furthermore, the company will generate additional revenue from its entry into the movie and event tickets market as a result of its acquisition of Paytm’s market share.
Zomato is growing its business, attracting specialists and investors with its offerings that include rapid commerce, movie tickets, and food delivery. Its recent quarter-over-quarter earnings rise has likewise been exceptionally noteworthy.
The company’s net profit in Q1FY25 above Street projections, rising from ₹2 crore to ₹253 crore, primarily due to greater gross order values in its food delivery, rapid commerce, and going-out verticals.
During the quarter, its total revenue was ₹4,442 crore, which was higher than ₹2,597 crore in the same period last year. With a 130% increase in gross order value (GOV), the rapid commerce vertical led the growth. In contrast, the meal delivery and going-out verticals saw growth of 27% and 106%, respectively.