Zomato, the popular food delivery platform, has announced an increase in its platform fee from Rs 7 to Rs 10 in preparation for the upcoming festive season. This move is expected to bring an additional Rs 65 crore to the company's revenue annually. Zomato's profits for the second quarter were lower than expected due to investments in its "dark stores" for online orders. The company has also approved a fundraise of up to Rs 8,500 crore to boost its cash reserves after its recent acquisition of a digital payment firm's movie and events ticketing businesses. With competition in the online food and grocery delivery sector heating up, Zomato's move to increase its platform fee may give them an edge in gaining market share.
Zomato's board of directors has approved a plan to raise Rs 8,500 crore through equity shares, following its impressive Q2FY25 earnings report. Analysts have shown strong confidence in the food delivery company's future, with leading brokerages raising their price targets and recommending a "Buy" stance. While some have maintained a more conservative outlook, the overall sentiment points towards growing market confidence in Zomato's ability to thrive in the competitive food delivery landscape.
Paytm's parent company, One97 Communications Ltd, saw a surge in its share prices after selling its movie and events ticketing business to Zomato for a whopping ₹2,048 crore. However, Paytm's overall financials have been impacted, with a significant loss in the last quarter. Despite this, brokerage firms are optimistic about the company's future prospects and have even raised their price target for the stock. The acquisition will allow Zomato to expand its presence in the 'going-out' segment, while Paytm focuses on its core financial services.
Zomato, a food delivery and quick commerce company, stunned the market with its first-quarter results, reporting a massive increase in net profits and market capitalization. With a surge of 126 times in net profit, driven by higher platform fees and improved operational profitability, the company's shares soared by 19% to a record high. The rise in profitability and strong growth in its quick commerce division have led to a steady increase in Zomato's stock price, which has almost tripled over the past year and continues to show promising signs.
Zomato's stock fell over six percent on Tuesday following the release of its March quarter results. Despite four brokerages maintaining a 'buy' rating on the company, several others have lowered their target price. The company's revenue and net profit for the quarter have seen significant growth, but EBITDA and EBITDA margin fell short of expectations. However, experts suggest investing in the company with a 'buy on dips' strategy.
The stocks of Zomato, the popular online food delivery platform, experienced a surge of over 4% in early Friday trading, reaching a new 52-week peak. This growth can be attributed to the company's impressive Q3 results, which showed a significant jump in net profit and revenue. Analysts are optimistic about Zomato's future prospects and have praised its performance across segments, especially its food delivery contribution margin. The company's stocks have risen by 121% in the last year and continue to trade higher on the BSE.