The shares of Zomato Ltd soared higher by 9 per cent to trade at Rs 69 levels in the early hours of the last trading day of the week. This came after the company posted strong Q2 results yesterday.
In Q2FY23, the company narrowed its losses to Rs 251 crore down from Rs 430 crore which they earned in the same period a year earlier. The company reported a 62 per cent increase in its revenue from operations which stood at Rs 1,661 crore up from Rs 1,024 crore in Q2FY22.
In addition to this, Zomato also completed the acquisition of Blinkit in August. The deal added to the financials of the company as Blinkit’s gross order value grew 26 percent quarter-on-quarter to Rs 14.82 billion while the revenue grew 44% quarter-on-quarter.
Global research firm Jefferies has upgraded the stock to a ‘Buy’ call with a target of Rs 100 per share which represents an upside of 45% from the current levels.
“Adjusted EBITDA (ex-Blinkit) is down to Rs 60 crore which is better than estimates. Blinkit growth was impressive and so is loss reduction, hyperpure also has grown strongly,” the firm said, according to a CNBC-TV18 report.
Zomato Limited is one of the leading online Food Service platforms in terms of the value of food sold. Its offerings include food delivery, dining-out services, Loyalty programs, and others. The company has a market capitalization of Rs 59,220 Crores.
Written by Anoushka Roy
