Zomato’s Remarkable Rebound: Shares Surge from Rs 40 All-Time Low to Rs 100

The shares of Zomato experienced a sharp rise today crossing Rs 100 after a long time. The stock opened at Rs 97, which was 1.6% higher than the previous day’s closing price of Rs 95.43. During the intraday session, the stock surged by 8% with significant trading volume.  

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 3.45 times in volumes than its normal trading volumes on the BSE. While writing this article, the shares of the company are up by Rs 5.07 or 5.31%, which is at Rs 100.50 on the BSE. 

On Thursday, Zomato, the food delivery platform, disclosed its Q1 earnings for FY24. The company achieved a net profit of Rs 2 crore, a significant improvement from the Rs 186 crore loss in the same period last year. 

After the announcement of the company’s results on July 03, the company’s stock surged by 11% on the very next day and closed the session at Rs 95.43 that day. 

If we recall the past data of the IPO and its listing price, the stock debuted at Rs 115 on July 23, 2021, from the final issue price of Rs 75 each. Since then, it has hit an all-time high of Rs 169.10 but started falling from the all-time high and touched an all-time low of Rs 40.55 on July 27, 2022.

If we calculate the return from the low point to the current market price, it generates an impressive return of 147%. Furthermore, if we calculate the return from the IPO’s final issue price of Rs 75, it has generated a negative return of 32%. 

In FY24 during the first quarter, the consolidated revenue from operations stood at Rs 2,416 crore, a significant surge from Rs 1,414 crore in the corresponding period of the previous 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.