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Published: June 10, 2023
Updated: June 10, 2023

Zomato Stock Skyrockets to a 52-Week High, Surging Over 50% in Two Months

Zomato, the leading food delivery platform, has experienced a remarkable surge in its stock price, reaching a 52-week high. This article delves into the recent developments, factors driving the growth, and provides an overview of Zomato's financial performance.

Zomato Shares Surge by Over 50% since March:

Zomato's stock has witnessed a significant uptrend, soaring by more than 50% since March. This impressive rally has caught the attention of investors, signalling renewed confidence in the company's prospects. However, it's important to note that despite this surge, Zomato's shares are still down by 52% from their record high of ₹160.3, reached in November 2021.

Strong Financial Performance:

Zomato's recent success is bolstered by robust financial results. The company's total revenue has seen a remarkable 70% year-over-year increase, reaching ₹2,056 crore. This surge in revenue demonstrates Zomato's ability to capitalise on the growing demand for food delivery services.

Reaching a 52-Week High:

Zomato's stock price reached a 52-week high, peaking at ₹77.9 per share. The closing price represented a 2.7% increase, marking the highest value since April 26, 2022. The positive momentum in the stock reflects growing investor interest and optimism surrounding Zomato's future prospects.

Favourable Circumstances Driving Investor Confidence:

Several factors have contributed to the surge in Zomato's stock price. Firstly, the company's improved earnings performance, including a narrower loss in the March quarter, has been well-received by analysts and investors alike. Zomato's net loss decreased to ₹188 crore, compared to ₹360 crore a year ago. This positive development has instilled confidence in the company's ability to enhance profitability.

Endorsement from Prominent Investors:

Renowned investor Chris Woods of Jefferies recently added Zomato stock to two of his long- only portfolios, allocating a weight of 4% to each. Such endorsements from notable investors further validate the growth potential and attractiveness of Zomato as an investment.

Zomato's remarkable surge to a 52-week high, with shares rising over 50% in just two months, signifies a strong comeback for the food delivery giant. Bolstered by impressive financial performance and endorsements from influential investors, Zomato has successfully captured investor confidence. As the company continues to expand its services and adapt to changing market dynamics, it remains poised for further growth and value creation.