Zomato shares: A day after the meal delivery aggregator announced it was raising its platform fee to ₹6 from ₹5, Zomato’s share price soared over 4% to reach a 52-week high on Monday’s session. The expected outcome of the new platform fees, which are set to be introduced in certain cities such as Bengaluru and Delhi, is that the profitability of the business would be slightly boosted. With its ₹2 trillion market capitalization (m-cap), Zomato joined a select group of businesses on Monday. Zomato’s stock price on the BSE began the day at ₹225 per share, and it increased to ₹232 per share at its intraday high. Zomato has seen an over 83% growth in share price so far in 2024.
Zomato shares, The share price of Zomato is now rising as a result of the formation of a Higher Bottom structure. In the short term, resistance may be found in the ₹245-250 zone, although the 20 DEMA at 206 is strong support, according to Ruchit Jain, Lead Research Analyst at 5paisa.
According to Trendlyne data, the stock price grew by 173.8% last year, outpacing the sector by 129.31%.
Zomato is one of India’s most well-known food aggregators, operating in 23 other countries. Strong success in multiple key areas contributed to the revenue growth of 73.3% YoY in Q4FY24, which came to ₹3,562 crore. EBITDA achieved ₹86 crore thanks to the introduction of platform fees, higher average order values, higher topline, and effective cost control.
The company increased the platform cost from ₹4 to ₹5 per order, a 25% increase, taking effect from April 20. This was a few weeks before its Q4 results.
Rapid commerce and meal delivery are two areas where Zomato expects to see considerable growth, according to brokerage firm Geojit Financial Services. Zomato has a bright future ahead of it because of its expanding customer base, rising order frequency, expanding delivery partner network, the opening of new locations, untapped potential, and operational leverage.
Following the company’s Q4 earnings announcement, the brokerage upped its target price to ₹220, which the stock has already achieved, and confirmed its BUY recommendation on the stock.
“Zomato has effectively expanded its business, propelled by rising sales and expansion in every area. The company anticipates success in its meal delivery business because of improvements in scale, a bigger client base, higher order frequency, and operational efficiency. Because more stores are being added, it is anticipated that the rapid commerce industry will grow. Zomato is well-positioned for future growth with its expanding customer base, growing network of delivery partners, and substantial unrealized market potential, according to the brokerage.
