Zomato, the leading food delivery app, experienced a remarkable surge on Friday as its shares leaped over 4% and reached a fresh 52-week high of Rs 150.20 on the National Stock Exchange (NSE). This unprecedented spike was fueled by the company’s exceptional performance in the December quarter, surpassing even the loftiest expectations of Wall Street.
Investor enthusiasm for this multibagger stock was palpable, with over 7.32 crore shares changing hands on the NSE by 9:30 am, underscoring the strong demand for Zomato shares.
Following the release of the earnings report, HSBC and Nuvama wasted no time in recommending buy views, while also raising their price targets for the stock. However, Macquarie appeared less impressed, maintaining its Underperform rating.
Zomato’s third-quarter earnings shattered expectations, propelled by robust growth in both its food delivery and hyperpure businesses. The company reported a staggering nearly 4x increase (283% quarter-on-quarter) in net profit, soaring to Rs 138 crore. This figure significantly surpassed the conservative estimate of Rs 36 crore predicted by an ET Now poll. In comparison, Zomato had incurred a loss of Rs 347 crore during the same period last year. Moreover, revenue from operations surged by an impressive 69% year-on-year to Rs 3,288 crore.
The exceptional performance of Zomato in the third quarter underscores its resilience and adaptability in the dynamic landscape of the food delivery industry. With its unwavering commitment to innovation and customer satisfaction, Zomato continues to solidify its position as a market leader, offering investors a delectable feast of opportunities for growth and prosperity.