Zomato’s share price surged by over 4% early on Friday, reaching a new high for the year. This spike followed the company’s impressive performance in the last quarter of 2023, particularly in its food delivery business. Zomato shares climbed up to 4.34% to hit 150.25 rupees each on the BSE.
During the third quarter of FY24, Zomato reported a net profit of 138 crore rupees, a significant improvement from the 347 crore rupees loss in the same period last year. This marked a whopping 283% increase in net profit on a quarter-on-quarter basis.
Revenue from Zomato’s operations in Q3FY24 totaled 3,288 crore rupees, showing a robust growth of 69% compared to the previous year. Additionally, the gross order value (GOV) for food delivery increased by 25% year-on-year. The company anticipates continued growth in GOV, potentially exceeding 20% year-on-year, especially if market share gains and consumer demand improve.
Related News: LIC Share jumps 5.82 percent following Q3 results
On Thursday, Zomato shares closed 2.42% higher after the announcement of its Q3 results.
Foreign brokerage firm Jefferies praised Zomato’s performance in Q3FY24, highlighting strong margin gains in food delivery. They raised their target price for Zomato shares to 205 rupees and maintained a ‘Buy’ rating.
Zomato Share Jumps 4 Percent Following Q3 Strong Results
Analysts at Emkay Global Financial Services also commended Zomato’s execution and growth across segments. Although food delivery GOV fell short of expectations due to subdued demand, they noted improvements in contribution margins. Zomato anticipates over 50% year-on-year growth in consolidated adjusted revenue in the coming quarters, with subsidiary Blinkit playing a significant role.
Emkay Global increased its earnings estimates and raised the target price for Zomato shares to 170 rupees, retaining a ‘Buy’ rating. Zomato’s shares have seen a remarkable rise of over 121% in the past year. As of 3:00 pm, Zomato shares were trading at 150 rupees each on the NSE, up by 4.10%.
