Shares of Zomato Ltd hit a fresh one-year high with the stock surging nearly 53 per cent in the last two months
Zomato Share Price Today: Shares of Zomato Ltd hit a fresh one-year high with the stock surging nearly 53 per cent in the last two months. The stock trades above its issue price of Rs 76 a share.
Zomato shares bottomed out at around Rs 50 apiece levels at the end of March 2023 or FY23, and since then it has remained in uptrend hitting 52-week high on a regular basis.
Read More: IKIO Lighting IPO Last Day: Know Subscription, GMP, Review, Should You Buy?
The stock hit a high of Rs 77.35 a share – a level last seen on April 26, 2022. At 1pm, the stock was trading at Rs 77 on the BSE, up 1.64 per cent from its previous close. The stock has gained nearly 53 per cent since March. It is still down 52 per cent lower from its record closing high of Rs 160.30 hit on November 15, 2021.
In the past one month, the stock has rallied 27 per cent on improved operational performance. It was trading at its highest level since June 2022, and has bounced back 91 per cent from its record low level of Rs 40.55, touched on July 27, 2022.
Read More: Stocks to Watch: Tata Power, Tata Steel, Asian Paints, HAL, Biocon, Aether, and Others
Investors are buying the stock because of a series of positive factors like improvement in earnings and recent addition of the stock by Chris Woods of Jefferies in its long portfolio to two of his long-only portfolios, assigning a weight of 4 per cent each.
The firm had earlier reported a narrower loss in the March quarter which analysts viewed positively. Net loss of Zomato narrowed to Rs 188 crore from Rs 360 crore a year ago and Rs 345 crore a quarter ago. Consolidated revenue for Zomato increased a whopping 70 percent on-year to Rs 2,056 crore.
According to Jefferies, the improvement in profitability will be primarily driven by margin expansion in the food sector and a reduction in losses for Blinkit. Despite challenging macroeconomic conditions that presented growth obstacles, the management demonstrated a sense of urgency in improving profitability, even with the launch of the Gold program.
Jefferies also notes that “green shoots” of positive progress are visible, and in the first quarter, the gross order value is expected to increase by a high single-digit percentage, which is seen as a positive development.
Read More: HAL Rallies 3% to Hit All-Time High As Board To Consider Stock Split; Key Details to Know
Interestingly, Zomato’s share price has been hitting a 52-week high despite ‘#BoycottZomato’ is trending on Twitter after its controversial ad campaign displayed on World Environment Day. Despite Zomato apologizing to the netizens for its unintentionally hurting sentiments, ‘#BoycottZomato’ started was trending on Twitter on Friday morning.
DISCLAIMER:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
