Zomato’s share price continued its bull run on Monday after the company’s results impressed analysts and investors. Zomato’s posted its second consecutive profitable quarter.
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The company posted a net profit of ₹36 crore for the quarter ended September. Post the results, several analysts have expressed confidence that the company is set to hit another all-time high in the next 12 months.
The Investment: If you were to invest ₹10,000 in Zomato today, with the stock price at ₹120, you would buy approximately 83 shares of the company. Now, if the stock were to reach its all-time high of ₹169, your investment would be worth approximately ₹14,027.
Earnings Overview: The food delivery giant also saw a 71% surge in revenue, which reached ₹2,848 crore, primarily attributed to a surge in orders during the festive season. Zomato’s gross order value (GOV) saw a substantial year-on-year increase of 47%, reaching ₹11,422 crore. Zomato’s “Gold” program, launched three quarters ago, has expanded to include 3.8 million members.
Going forward, the company anticipates that the demand uptick in the upcoming December quarter may be somewhat restricted, notwithstanding additional order volumes linked to the Cricket World Cup. As per the food tech company, this is due to the fact that during the Navratri festival and Shradh period, a significant number of Indians observe fasts, leading Zomato to expect the demand surge to be confined to a select few match days and therefore not particularly significant.
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Price Action: Zomato’s share price was up 2.88% to trade at ₹119.85 in afternoon trade on Monday.
