Zomato‘s shares surged as much as 7.62% to INR 284.30 apiece on the BSE today (November 25) after the company announced its inclusion in the BSE Sensex.
Zomato replaces JSW Steel in Index
This development comes as part of the upcoming reconstitution of the 30-stock benchmark index, effective December 23. Zomato will replace JSW Steel in the index.
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According to INC42, the company’s shareholders have also approved raising INR 8,500 Cr (around $1 Bn) through a qualified institutional placement (QIP). This move is expected to provide a boost to the company’s growth plans. The shares pared some gains to trade 5.47% higher at INR 278.60 at 12:35 PM. This came after the company ended its last three trading sessions in the red.
Morgan Stanley predicts Zomato’s stock to double in 5 years
The company’s inclusion in the BSE Sensex is a significant milestone, and analysts are bullish about its prospects. Global brokerage firm Morgan Stanley has projected that Zomato’s stock has the potential to double in value within five years—or even in less than three years under a bullish scenario.
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Further, the brokerage firm maintained an “overweight” rating and a “top pick” status for the stock, underlining Zomato’s rising share of quick commerce in India’s retail market, strong execution in food delivery and quick commerce, a deep balance sheet, and a large profit pool by 2030.
Meanwhile, the food tech giant’s financial performance has also been impressive, with a 68.5% surge in operating revenue to INR 4,799 Cr in Q2 FY25 from INR 2,848 Cr in the September quarter of the previous fiscal. Its Quick commerce business Blinkit’s GOV surged 25% QoQ to INR 6,132 Cr. However, the company’s net profit slumped 30% to INR 176 Cr in the September quarter from INR 253 Cr posted in the preceding June quarter.
