Zomato shares soar 9% as Deepinder Goyal hints at profitability ahead of Q3 results
The tweet congratulating Paytm on achieving profitability gave Zomato's investors hope that the company will follow suit ahead of its third-quarter results.
Shares of food delivery major soared by over 9% on Wednesday after Founder and CEO Deepinder Goyal spoke about the company's profitability in a tweet.
The founder cheered Paytm's Founder Vijay Shekhar Sharma on achieving EBITDA-level profitability a day after the development, noting that the delay was caused because he was busy working towards Zomato's profitability.
The tweet stirred a sense of optimism in Zomato's investors who have been spooked by the stock's downturn in recent months, sending the shares to soar more than 9% during the day. The intraday high was an 11.6% rise to Rs 55.3.
Zomato will reveal its third-quarter performance tomorrow, February 9. Its food delivery numbers are expected to improve, along with growth in the quick commerce segment through .
The Gurugram-based company reported a loss of Rs 260 crore in the July-September quarter last year, followed by the widely criticised acquisition of the hyperlocal grocery firm Blinkit. However, its food delivery gross order value (GOV) grew by 23% in Q2 compared to the previous year, led by a 200% year-on-year growth in the Hyperpure business.
Zomato's stock, along with its tech industry peers including Nykaa and Paytm, has taken a beating since its listing.
On July 23, 2021, when Zomato made its debut on the Indian bourses, its share price touched the day's high of Rs 138 after opening at Rs 115 on the Bombay Stock Exchange (BSE). It also touched an all-time high of Rs 169.1 on November 16, 2021. However, since its debut, the stock has corrected by 68.8% in absolute terms to the day's low of Rs 47.5 on February 7, 2023.
Since January 1, 2023, Zomato's share price has fallen by 9.71% on the BSE. In the same period, the S&P BSE Sensex declined by 0.81%.
Edited by Kanishk Singh