With this, Zomato is set to replace JSW Steel in the 30-stock benchmark index as part of the upcoming reconstitution, effective December 23
Besides, its shareholders approve raising INR 8,500 Cr (around $1 Bn) through a qualified institutional placement (QIP)
Last week, global brokerage firm Morgan Stanley projected that Zomato stock has the potential to double in value within five years
Shares of Zomato jumped as much as 7.62% during intraday trading to INR 284.30 apiece on the BSE today (November 25) following news about its inclusion in the BSE Sensex.
With this, Zomato is set to replace JSW Steel in the 30-stock benchmark index as part of the upcoming reconstitution, effective December 23.
Besides, its shareholders approve raising INR 8,500 Cr (around $1 Bn) through a qualified institutional placement (QIP).
However, the shares pared some gains to trade 5.47% higher at INR 278.60 at 12:35 PM.
This came after the company ended its last three trading sessions in the red. Today, its shares opened above at INR 273 against the previous close of INR 264.15.
As much as 71 Cr shares of Zomato changed hands till 12:35 PM while the company’s market capitalisation remained at INR 2,45,385 Cr by then.
Last week, global brokerage firm Morgan Stanley projected that Zomato stock has the potential to double in value within five years—or even in less than three years under a bullish scenario. It increased its price target to INR 355 per share from INR 278 for the company earlier.
The brokerage firm maintained an “overweight” rating and a “top pick” status for the stock underlining Zomato’s rising share of quick commerce in India’s retail market, strong execution in food delivery and quick commerce, a deep balance sheet, and a large profit pool by 2030.
Another brokerage firm in a research note on June 25, noted that while the foodtech major faces near-term challenges such as fierce competition and high spending on expansion, its ‘deep balance sheet’ and ability to withstand competitive pressures are key strengths.
On the financial front, the company saw a 68.5% surge in operating revenue to INR 4,799 Cr in Q2 FY25 from INR 2,848 Cr in the September quarter of the previous fiscal.
Its net profit slumped 30% to INR 176 Cr in the September quarter from INR 253 Cr posted in the preceding June quarter. Its Quick commerce business Blinkit’s GOV surged 25% QoQ to INR 6,132 Cr.
