Zomato gains 6%; stock rebounds 21% from Wednesday’s low-HDmoviesfreedownload



Shares of Zomato moved higher by 6 per cent to Rs 58.65 on the National Stock Exchange (NSE) in Thursday’s intra-day trade. With this, the stock of the food-delivery company has rebounded 21 per cent from Wednesday’s low of Rs 48.40 as over a dozen institutional investors bought the company’s equity shares via block deals.


American ride-hailing giant Uber, on Wednesday, sold its entire 7.78 per cent stake in domestic food-delivery company Zomato to mop up Rs 3,088 crore ($390 million). A total of 612 million shares were sold at Rs 50.44 apiece on the NSE via block deals, the exchange data shows.


Fidelity Investments bought shares worth Rs 274 crore and ICICI Prudential Life Insurance bought another Rs 226 crore, showed block deal data. CLICK HERE FOR DETAILS

Meanwhile, in the past three days, the stock price of Zomato has gained 27 per cent after the company reported a consolidated loss of Rs 186 crore in the first quarter of 2022-23 (Q1FY23). The company’s loss declined both on year-on-year (YoY) and sequential bases. The company’s consolidated loss was Rs 359 crore in Q1FY22 and Rs 359.7 crore in Q4FY22.


The management guided that it expects to achieve a break-even (ex-Blinkit) by March 2023 (outer limit: September 2024) driven by rise in take-rate and cost efficiencies.


Some other noteworthy factors that pushed the stock included gross order value (GOV) of food delivery which jumped 10 per cent QoQ and 42 per cent YoY, aided largely by growth in volumes, and mild growth in average order value or AOV (1-2 per cent). The company also broke even on an adjusted Ebitda basis during the quarter (versus -1.3 per cent and -2.2 per cent in Q4 and Q3, respectively). CLICK HERE FOR MORE DETAILS

Zomato got listed in July 2021. Post-listing, the company had hit a peak market cap of Rs 1.26 trillion, which has declined to Rs 45,901 crore. With today’s gain, the stock price of Zomato has recovered 45 per cent from its all-time low of Rs 40.55, touched on July 27, 2022. However, it is still down 23 per cent from its issue price of Rs 76 per share. The stock hit a record high of Rs 169.10 on November 16, 2021.

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