Zomato Share Performance Since Its Listing and Financial Overview

Founded in 2010, Zomato Limited is a major online food service platform known for its high food sales value. Its services include food delivery, dining-out options, loyalty programs, and more.

As of December 31, 2020, Zomato operates in 23 countries with a network of 131,233 active restaurants for food delivery, 161,637 delivery partners, and an average of 10.7 million customer food orders each month. In this article, learn about Zomato’s share performance since its listing, its financial results, and recent developments.

Zomato Share Performance

Zomato’s shares debuted at ₹116 on the NSE and ₹115 on the BSE on July 23, 2021, reflecting a premium of 51% to 52.63% above the IPO price. Zomato’s stock has reached a 52-week high of ₹298.20 and a low of ₹103.25.

As of October 30, 2024, Zomato’s share price opened at ₹249.15 and touched the day low of ₹245.05, reflecting a loss of 1.74% at 01:07 PM. Zomato shares delivered a return of 28.16% in the past 6 months and 130.27% in the past 1 year. In addition, Year to date, or YTD return by Zomato stood at 99.20%. From a fundamental analysis viewpoint, the company has a return on equity (ROE) of 1.76%. The stock’s current price-to-earnings (P/E) ratio stands at 300.96, while the price-to-book (P/B) ratio is at 10.30.

Financial Highlights 

Zomato Ltd posted a net profit of ₹176 crore for July-September. In the same quarter last year, Zomato’s net profit was ₹36 crore. Zomato’s revenue on an adjusted basis grew by 69% year-on-year to ₹4,799 crore, and EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) reached ₹226 crore, a significant improvement from a loss of ₹47 crore last year.

Adjusted EBITDA was ₹330 crore, compared to ₹41 crore in the same period last year, with an EBITDA margin of 4.7%. In line with recent reports, Zomato’s board approved a proposal to raise ₹8,500 crore through a Qualified Institutional Placement (QIP). In a letter to shareholders, Zomato stated that the fundraising aims to strengthen its cash reserves to compete effectively and ensure parity with other players. The company also noted that its quick commerce segment is operating close to break-even on an adjusted EBITDA basis, with no immediate plans for additional acquisitions or minority investments.

Recent Developments

Recently, Zomato acquired Paytm’s ticketing business for over ₹2,000 crore. Gross Order Value (GOV) for the B2C segment rose by 55% year-over-year to ₹17,670 crore. For food delivery alone, GOV increased by 21% from last year and 5% quarter-over-quarter, with food delivery EBITDA at ₹341 crore and a contribution margin of 7.6%, up from 7.3% in June and 6.6% last year.

In the quick commerce sector, GOV more than doubled year-over-year with a 122% increase and a 25% rise sequentially. The “going-out” segment also saw GOV grow by 171% from last year and by 46% from the previous quarter.

Blinkit, Zomato’s quick-commerce arm, expanded its network to 791 stores by the end of September, up from 639 stores in June and 411 stores last year. Blinkit reported an EBITDA loss of ₹8 crore for the quarter, narrowing from a loss of ₹125 crore last year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.