After the food delivery behemoth was added to the benchmark BSE Sensex index on Monday, Zomato’s share price dropped by more than 3%. One of the first modern IT stocks to join the esteemed 30-share index is Zomato.
Zomato took the position of JSW Steel in the Sensex’s half-year rebalancing, effective December 23. At the closing of Friday, December 20, the change was made.
Nuvama Alternative & Quantitative Research estimates that Zomato’s Sensex listing will draw passive inflows of about $513 million. However, it is expected that the absence of JSW Steel will cause outflows of $252 million.
Zomato’s inclusion in the Sensex not only shows how dominant the meal delivery behemoth is in the industry but also shows how tech-driven businesses are becoming more and more significant in the Indian stock market.
However, early Monday trading saw a 3.08% drop in Zomato’s share price, to ₹273.15 a share.
Share Price Trend
This year, Zomato’s share price has produced remarkable returns thanks to strong financial results. The price of Zomato’s stock has increased by almost 43% in the last six months, greatly surpassing the benchmark Sensex’s flat performance.
Zomato shares have soared by 350% in the last two years and have produced multi-bagger returns of over 126% year-to-date (YTD).
Zomato’s market capitalization was ₹2,71,995 crore on Friday when its shares closed 2.29% lower at ₹281.85 per on the BSE. Some of the leading businesses, including Tata Motors, Adani Enterprises, Asian Paints, Coal India, Bajaj Auto, and others, have seen their valuations surpass Zomato’s.
Zomato’s consolidated net profit for the second quarter of FY25 increased by 389%, to 176 crore, thanks to a sustained rise in food delivery margins and a rapid commerce operation that is still operating close to break-even. In the previous year, the massive online meal delivery company reported a ₹36 crore profit.
Operating revenue for the company increased 68% year over year (YoY) to ₹4,799 crore in Q2FY25. In the same period last year, the adjusted EBITDA was ₹41 crore, but it now stands at ₹331 crore.
Its B2C operations saw a 55% YoY increase in gross order value (GOV) in Q2FY25, reaching ₹17,670 crore.
Zomato’s stock was down 1.76% at ₹276.90 per share on the BSE at 9:30 AM.
