Shares of Zomato touched a new 52-week high at INR 105.9 as they jumped as much as 4.3% during the intraday trading on the BSE on Tuesday (October 3).
The jump came in the first trading session after Zomato announced the liquidation of its Chile-based wholly owned subsidiary, Zomato Chile SpA (“ZM Chile”), on September 30 after market hours.
Zomato, which has closed down a number of its international subsidiaries in recent months, said that the closure of ZM Chile will have no impact on its turnover/revenue.
Shares of Zomato have been on a bull run since April this year on the back of its aggressive strategies to become profitable and finally achieving profitability in Q1 FY24. Currently, the stock is up 77.4% year-to-date (YTD).
Shares of Zomato have gained over 100% in the last 6 months.
The stock, which plummeted almost 65% from its listing price in 2022, is now trading just 8% below its listing price of INR 115.
After achieving the level last seen at the end of January 2022, the shares ended today’s trading session 3.7% higher at INR 105.3 on the BSE.
Zomato has been experimenting with multiple new features on its platform in a bid to increase its revenue. Kotak Institutional Equities recently said that the foodtech giant’s decision to charge platform fee of INR 2, in some cases INR 3, per food delivery order would increase its customer take rate and contribution margin.
Meanwhile, Bernstein stated last month that Zomato is “raising the profitability bar” and could deliver long-term, high-teens growth in food delivery with continued improvement to contribution margins.
Meanwhile, a few other new-age tech stocks also gained in today’s trading session amid consolidation in the larger domestic equity market. CarTrade Technologies and MapmyIndia jumped over 6% each in today’s trading session, while Paytm was up around 2% and EaseMyTrip rose 3.7%.
Benchmark indices Nifty 50 fell 0.56% to 19,528.75 and Sensex declined 0.48% to 65,512.1 in today’s trading session.
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