The shares of the large-cap company gained up to 2 percent after a foreign institutional investor, Goldman Sachs Pte, bought 6,007,412 equity shares via a Block Deal.
Price movement
With a market capitalization of Rs 1.94 lakh crore, the shares of Zomato Ltd were trading at Rs 202.35 per share, increasing around 0.42 percent as compared to the previous closing price of Rs 201.50 apiece.
Reason for rise
The shares of Zomato Ltd have seen a bearish movement after a foreign institutional investor, Goldman Sachs Pte, bought 6,007,412 equity shares of the company at an average price of Rs 199.5 per share from Kadensa Master Fund via a Block Deal.
Financial performance
Examine the company’s financial condition, revenue zoomed by 64 percent from Rs c crore in Q3FY24 to Rs 5,405 crore in Q3FY25, and during the same time frame, net profit plummeted drastically by 57 percent from Rs 138 crore to Rs 59 crore.
Expansion Strategy
The company’s expansion strategy focuses on accelerated store additions driven by improved organizational bandwidth, not competitive pressure. While 80% of business remains in the top eight cities, smaller cities show promising traction with attractive ROI, highlighting growing market potential beyond metro areas. This strategic approach ensures sustainable and profitable growth.
Also read: PSU stock jumps after receiving ₹245 Cr order from Govt. of Maharashtra & West Bengal
Margins and Costs
Food delivery margins are driven by delivery costs and platform fees. Optimizing these expenses and consumer fees is crucial for margin expansion. The company aims to improve efficiencies, targeting 5% margins in the coming quarters through strategic cost management and operational enhancements in its delivery network and pricing structure.
Future Outlook
The management remains optimistic about profitability growth as store maturity enhances and operational efficiencies improve. They emphasize sustaining market share while optimizing margins, ensuring service levels remain uncompromised. A strategic approach focuses on long-term stability, balancing cost efficiency with quality service to drive sustainable growth and competitive positioning in the market.
Company Profile
Zomato Limited serves as an Internet site that connects users, restaurant partners, and delivery partners. The Company also provides a platform for restaurant partners to market themselves to their target audiences in India and overseas, as well as supply ingredients to restaurant partners.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
