Zomato share price zooms on positive quarterly numbers
The stock market reacted positively to the first quarter financial numbers of Zomato, which saw a steep rise in net profit and strong revenue growth.
The share price of Zomato rose as much as 17% on Friday, a day after it announced market-beating financial results for the first quarter of FY25, even as the stock markets declined.
Zomato's share price closed at Rs 234.09 on Thursday and opened at Rs 244.50 at the start of trading on Friday. It touched a high of Rs 278.70 on Friday. At 10:30 am it was trading at Rs 267.99, showing a gain of 14.48%.
The Nifty 50 was down 0.76% on Friday morning following the trend of the US stock markets, which dipped on Thursday. In addition, Friday is generally the day for profit taking where trades make settlement of their stocks.
Zomato reported a multifold growth in first quarter profit at Rs 253 crore and an operating revenue of Rs 4,206 crore, as consumers continued to stay bullish on quick commerce.
The gross order value for its quick commerce business more than doubled year-on-year to Rs 4,923 crore.
The company is banking on improved gross margins, delivery fee, and advertising income to boost its take rate, which refers to how much money the company stands to make on every transaction.
Zomato has come a long way since its public listing in July 2021 at a price of Rs 76 per share. In the last one year, its stock price has risen by 170%.
The financial performance of Zomato has also led to a 'buy' recommendation on the stock from various brokerage houses.
Edited by Swetha Kannan
