Zomato market-cap touches Rs 2 trillion; stock zooms 88% thus far in 2024

Zomato stock outlook: In the past one week, Zomato stock price has outperformed the market by surging 12 per cent as against 1 per cent rise in the benchmark index

Zomato m-cap: Zomato, on Monday, joined the elite group of companies having a market capitalisation (m-cap) of Rs 2 trillion. This comes after Zomato stock price hit a new high of Rs 232, rising 4 per cent on the BSE in the intraday trade.

Zomato's m-cap touched an intraday high of Rs 2.01 trillion on the BSE. The stock of the food delivery and quick commerce company, meanwhile, was trading 2 per cent higher at Rs 227 on the BSE. In comparison, the BSE Sensex was up 0.23 per cent at 80,708. 

In the past one week, Zomato stock price has outperformed the market by surging 12 per cent as against 1 per cent rise in the benchmark index. The stock has recovered 58 per cent from its previous month's low of Rs 146.85, touched on June 4. Thus far in the calendar year 2024, the market price of Zomato has zoomed 88 per cent on a healthy business outlook. In comparison, BSE Sensex rallied nearly 12 per cent.

Zomato is a leading food delivery aggregator in India with a presence in 23 other countries.

According to reports, food delivery majors Zomato and Swiggy have increased their platform fees to Rs 6 in key markets like Bengaluru and Delhi. This marks an increase of 20 per cent from the Rs 5 that the two platforms were charging until now in these markets 

Meanwhile, Zomato expects strong growth in its food delivery and quick commerce businesses. Rising customer base, higher order frequency, expanding network of delivery partners, addition of new stores, untapped opportunities, and operational leverage augur well for Zomato's prospects, brokerage firm Geojit Financial Services said.

Zomato has successfully scaled its operations, driven by growth across all segments and improved profitability. The company expects its food delivery business to display a strong performance, owing to scale improvements, growing customer base, increased order frequency and operational efficiency.

"The quick commerce business is expected to thrive, owing to the addition of new stores. With a rising customer base, increasing delivery partners and significant untapped market potential, Zomato is poised for continued success," the brokerage firm said. 

Meanwhile, Zomato expects strong growth in its food delivery and quick commerce businesses. Rising customer base, higher order frequency, expanding network of delivery partners, addition of new stores, untapped opportunities, and operational leverage augur well for Zomato's prospects, brokerage firm Geojit Financial Services said.

Zomato has successfully scaled its operations, driven by growth across all segments and improved profitability. The company expects its food delivery business to display a strong performance, owing to scale improvements, growing customer base, increased order frequency and operational efficiency.

"The quick commerce business is expected to thrive, owing to the addition of new stores. With a rising customer base, increasing delivery partners and significant untapped market potential, Zomato is poised for continued success," the brokerage firm said.  In BlinkIt, the brokerage firm said it expects sequential GOV growth of 22 per cent led by robust increase of 20 per cent in order volumes (that in turn should be driven by MTU increase from 6.4 million to 7.5 million). Take-rates can improve to 19.5 per cent from 19.1 per cent in Q4, driven by ad income and customer fees.

Indians are discovering regional cuisine as they travel and eat out. (Stock photo)