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.