Foodtech giant Zomato‘s shares continued͏͏ their͏͏ four-day͏͏ winning͏͏ streak,͏͏ rising͏͏ over͏͏ 2%͏͏ in͏͏ early͏͏ trading͏͏ on͏͏ September͏͏ 23͏͏ to͏͏ reach͏͏ a͏͏ new͏͏ all-time͏͏ high͏͏ of͏͏ INR͏͏ 298.05͏͏ each͏͏ on͏͏ the͏͏ BSE.
While͏͏ the͏͏ stock͏͏ surged͏͏ as͏͏ much͏͏ as͏͏ 2.5%͏͏ to͏͏ reach͏͏ a͏͏ lifetime͏͏ intraday͏͏ peak,͏͏ it͏͏ later͏͏ trimmed͏͏ some͏͏ gains.͏͏ By͏͏ 3:01͏͏ PM,͏͏ it͏͏ was͏͏ trading͏͏ at͏͏ INR͏͏ 294.75͏͏ on͏͏ the͏͏ BSE,͏͏ up͏͏ 1.4%͏͏ from͏͏ the͏͏ previous͏͏ close.
Market͏͏ Rally͏͏ Fuels͏͏ Stock͏͏ Surge:
The͏͏ rise͏͏ in͏͏ Zomato’s͏͏ share͏͏ prices͏͏ was͏͏ driven͏͏ by͏͏ a͏͏ rally͏͏ in͏͏ the͏͏ broader͏͏ market,͏͏ with͏͏ both͏͏ the͏͏ Sensex͏͏ and͏͏ Nifty͏͏ 50͏͏ reaching͏͏ their͏͏ respective͏͏ all-time͏͏ intraday͏͏ highs.
The͏͏ 30-share͏͏ BSE͏͏ Sensex͏͏ rose͏͏ over͏͏ 0.44%͏͏ to͏͏ reach͏͏ an͏͏ all-time͏͏ intraday͏͏ high͏͏ of͏͏ 84,922.72,͏͏ while͏͏ the͏͏ NSE͏͏ Nifty͏͏ 50͏͏ gained͏͏ 0.57%͏͏ to͏͏ hit͏͏ its͏͏ lifetime͏͏ intraday͏͏ peak͏͏ of͏͏ 25,936.90.
Continue͏͏ Exploring:͏͏ Zomato shares͏͏ hit͏͏ all-time͏͏ High͏͏ of͏͏ INR͏͏ 290.50͏͏ amid͏͏ broader͏͏ market͏͏ rally
The͏͏ record-breaking͏͏ rally͏͏ in͏͏ the͏͏ broader͏͏ market͏͏ followed͏͏ the͏͏ US͏͏ Federal͏͏ Reserve’s͏͏ decision͏͏ to͏͏ cut͏͏ interest͏͏ rates͏͏ by͏͏ half͏͏ a͏͏ percentage͏͏ point͏͏ for͏͏ the͏͏ first͏͏ time͏͏ in͏͏ four͏͏ years,͏͏ bringing͏͏ the͏͏ rates͏͏ down͏͏ to͏͏ approximately͏͏ 4.9%.
JP͏͏ Morgan͏͏ Raises͏͏ Target͏͏ Price͏͏ for͏͏ Zomato:
Notably,͏͏ brokerage͏͏ firm͏͏ JP͏͏ Morgan͏͏ recently͏͏ reaffirmed͏͏ its͏͏ “overweight”͏͏ rating͏͏ on͏͏ Zomato,͏͏ increasing͏͏ its͏͏ target͏͏ price͏͏ to͏͏ INR͏͏ 340͏͏ per͏͏ share͏͏ from͏͏ INR͏͏ 208.͏͏ This͏͏ suggests͏͏ an͏͏ upside͏͏ potential͏͏ of͏͏ nearly͏͏ 17%͏͏ based͏͏ on͏͏ the͏͏ stock’s͏͏ previous͏͏ close.
Shares͏͏ of͏͏ Zomato͏͏ have͏͏ surged͏͏ nearly͏͏ 140%͏͏ year-to-date,͏͏ driven͏͏ by͏͏ the͏͏ company’s͏͏ improving͏͏ profitability͏͏ and͏͏ the͏͏ introduction͏͏ of͏͏ several͏͏ appealing͏͏ features,͏͏ including͏͏ group͏͏ ordering͏͏ and͏͏ ticket͏͏ rescheduling,͏͏ among͏͏ others.
Continue͏͏ Exploring:͏͏ Zomato shares͏͏ surge͏͏ 7.7%͏͏ after͏͏ JP͏͏ Morgan͏͏ raises͏͏ target͏͏ price͏͏ to͏͏ INR͏͏ 340
Impressive͏͏ Q1͏͏ FY25͏͏ Financial͏͏ Performance:
Zomato’s͏͏ profit͏͏ soared͏͏ to͏͏ INR͏͏ 253͏͏ crore͏͏ in͏͏ Q1͏͏ FY25,͏͏ up͏͏ from͏͏ INR͏͏ 2͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ quarter͏͏ last͏͏ year.͏͏ Revenue͏͏ from͏͏ operations͏͏ also͏͏ increased͏͏ by͏͏ 74%͏͏ to͏͏ INR͏͏ 4,206͏͏ crore,͏͏ compared͏͏ to͏͏ INR͏͏ 2,416͏͏ crore͏͏ in͏͏ Q1͏͏ FY24.
Conversely,͏͏ Zomato͏͏ has͏͏ been͏͏ facing͏͏ growing͏͏ pressure͏͏ from͏͏ GST͏͏ authorities͏͏ in͏͏ the͏͏ country.͏͏ Last͏͏ week,͏͏ the͏͏ West͏͏ Bengal͏͏ GST͏͏ authorities͏͏ issued͏͏ a͏͏ new͏͏ goods͏͏ and͏͏ services͏͏ tax͏͏ (GST)͏͏ demand͏͏ and͏͏ penalty͏͏ order͏͏ exceeding͏͏ INR͏͏ 17.70͏͏ crore.
That͏͏ same͏͏ month,͏͏ the͏͏ foodtech͏͏ giant͏͏ received͏͏ a͏͏ GST͏͏ notice͏͏ amounting͏͏ to͏͏ INR͏͏ 9.85͏͏ crore͏͏ from͏͏ the͏͏ Assistant͏͏ Commissioner͏͏ of͏͏ Revenue,͏͏ Government͏͏ of͏͏ West͏͏ Bengal.
