Zomato Reaches A Five-month High And Increases By 27% In A Single Month
On Thursday, the price of Zomato's stock rose to its highest level in the previous five months. On Thursday, the stock ended the day on the BSE up more than 3% at Rs 65.70 a unit. On the BSE, the shares did, however, slightly decline to settle at Rs 65.41 per share on Friday, down 0.34 percent.
Zomato shares jumped to Rs 66.46 per piece on the BSE on Thursday, marking the stock's best value in the previous five months since it closed at Rs 65.5 per share in December 2022.
The stock has increased by 27 percent over the last month, although the benchmark Sensex has only risen by 4 percent in the same time frame. The brokerage firms also expressed optimism about the company's prospects for future expansion.
Despite a large increase, the price of Zomato's shares is still below the issue price.
On July 23, 2021, Zomato made its debut on Indian stock exchanges at an issue price of Rs. 76 per unit. The stock price of Zomato has increased by 7% in the past year. The stock has increased by more than 10% since 2023.
Motilal Oswal said that Zomato is a significant participant in the meal delivery industry last month. According to the forecast, the firm would expand its sales at a compound annual growth rate (CAGR) of 29% between FY23 and FY25. Zomato is anticipated to turn a profit by FY25 while facing fierce competition due to its tremendous development. According to the local brokerage business, rising internet connectivity, increased consumption, and urbanization would all contribute to the industry of food delivery in India seeing tremendous development in the next years.
Additionally, it said that a 13 percent compound annual growth rate (CAGR) of monthly transacting users (MTU) is anticipated from FY23 to FY25 as a result of Zomato's growing use and acceptance.
It is expected that the firm would turn a profit by FY25 since Zomato's food division reached Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) breakeven in the first quarter of FY23.