Zomato, a major player in the foodtech industry, saw its shares surge to a record peak of INR 175.5 during early trading on the BSE on Monday, March 4th.
The stock, which has been experiencing an upward trend since mid-April last year, surged nearly 5% during intraday trading to reach its all-time high.
Even last Friday, the stock surged almost 5% intraday to touch the previous all-time high of INR 173.45.
Continue Exploring: Zomato’s bull run continues: Stock jumps 5%, setting new record peak
Following its rally earlier today, the shares retraced some of their gains to conclude the day with a 1.3% increase, reaching a new record closing price of INR 169.75 on the BSE.
Currently, Zomato is trading at a level last observed in November last year, when it had reached a record intraday high of INR 169.1.
Since its listing in July 2021, Zomato’s shares have experienced significant fluctuations. In the backdrop of a downturn in the global tech sector, the company witnessed a substantial 60% decline in market capitalization in 2022. Moreover, apprehensions surrounding its losses and the acquisition of the loss-making Blinkit contributed to the challenges faced by shares of the startup led by Deepinder Goyal.
However, as the startup reported its first profitable quarter in Q1 and continued to grow its profits every quarter thereafter, the market sentiment towards the stock became positive.
Although its primary food delivery segment experiences sluggish growth, the strengthening fundamentals of its quick commerce division, Blinkit, have sparked bullish sentiment on the stock among investors.
Presently, the company is expanding its roster of brands and introducing fresh categories on Blinkit, positioning itself to compete against ecommerce giants like Amazon and Flipkart.
Continue Exploring: Zomato’s Blinkit set to ramp up e-commerce deliveries with diverse product range
During its most recent reported quarter, Q3 FY24, Zomato recorded a profit after tax (PAT) of INR 138 Cr, marking a substantial 283% increase quarter-on-quarter.
The company’s shares have surged by over 37% since the beginning of the year.
Continue Exploring: Zomato reports third consecutive profitable quarter with INR 138 Cr PAT in Q3 FY24
