Zomato share price: The food delivery giant’s stock price has fallen over 14% in the previous two sessions and over 23% in the past month.
Zomato shares fell for the third straight session, continuing their poor run on Dalal Street after the company reported Q3FY25 results.
Zomato’s stock price has fallen 14% in the previous two sessions and over 23% in the past month.
Zomato’s share price fell after a period of substantial gains, as its profit in the third quarter dipped sharply to Rs 59 crore.
While analysts acknowledged the drop in net profit in Q3 FY25, they remain bullish about the company’s quick commerce division, Blinkit.
SHOULD YOU BUY OR AVOID?
Despite the fall in Zomato’s share price, brokerage firms remain optimistic about the company, albeit with rising competition.
As mentioned earlier, most brokerages remain bullish on Zomato’s long-term performance. They cite Blinkit as well-positioned to retain a top spot in the quick commerce space.
Brokerage firms such as Nomura, Jefferies, and Bernstein are all optimistic about Zomato’s long-term growth potential. However, most brokerages said the near-term losses may be higher due to the rapid expansion of dark stores.
It is also worth noting that brokerages such as Nuvama Institutional Equities and Jefferies have trimmed their target price on Zomato’s stock.
ZOMATO Q3 Performance:
In the third quarter, Zomato reported a 57% decline in consolidated net profit to Rs 59 crore, compared to Rs 138 crore in the year-ago period.
Its revenue from operations rose 64.39% to Rs 5,405 crore in the quarter, compared to Rs 3,288 crore in the year-ago period. Its adjusted EBITDA also grew 128% year-on-year, but it fell 14% on a quarter-on-quarter basis.
This was due to increased investments in new stores.
At 10:53 am, shares of Zomato were trading 2.59% lower at Rs 209.10 on the Bombay Stock Exchange (BSE).
