By Soni 
Shares of food delivery giant Zomato are in the news these days. The stock witnessed huge volatility on Thrusday 24th Oct 2024. The stock reached an intra-day high of ₹ 267.20 and intraday low 252.55. At the time of market close 3.30PM, Zomato share fell by 3.5% and settle at ₹ 254.80. Brokerage firms are positive about this stock and are advising to buy it.
Zomato Q2 Results: Zomato Ltd net profit rise to 389% rise in Q2FY25 which is ₹176 crore, and The profit is up from ₹36 crore last year. Revenue of Zomato increases to 68.5% which is ₹4,799 crore,. However, net profit decreased by 30.43% from Q1FY25 due to a cash balance drop after acquiring Paytm’s ticketing business.
Q2 financials Statics: Sept 2024
| (INR) | Sept 2024 | Y/Y |
|---|---|---|
| Revenue | 5.02KCr | 76.26% |
| Net income | 176Cr | 388.89% |
| Diluted EPS | 0.2 | 400% |
| Net profit margin | 3.51% | 178.57% |
| Operating income | 267Cr | 252.57% |
| Net change in cash | – | – |
| Cash on hand | – | – |
| Cost of revenue | 1.92KCr | 76.35% |
Zomato Revenue jump: The revenue from operations increases by 68.50% from corresponding quarter of the previous year. Total revenue is ₹4,799 crore for the July-September quarter and ₹2,848 crore reported in the corresponding quarter of the previous financial year. The consolidated total income for the quarter Q2 that ended September is at ₹5,020 crore which was up 64% from ₹3,060 crore reported in the corresponding quarter of the previous financial year (Q2FY24).
Fund raise via QIP : Through a QIP (qualified institutional placement ), Zomato’s board approved raising an additional ₹8500 crore to strengthen finances in a competitive market. The company said, “While the business is now generating cash (vis-a-vis a loss making business at the time of IPO), we believe that we need to enhance our cash balance given the competitive landscape and the much larger scale of our business today”
District app: The CEO and co-founder of Zomato, Deepinder Goyal stated that the new District app will launch within the next four weeks. Right now, the company’s main goal is to ensure that the migration from Paytm ticket booking platforms to the new District app goes smoothly
Blinkit revenue: Zomato’s quick commerce business increases a 129% year-on-year growthand revenues reached to ₹1,156 crore. The gross order value (GOV) also saw a 122% year-on-year increase to ₹6,132 crore.
Zomato Share Target Price: Experts’ Opinion: Brokerage houses are excited about this stock. CLSA has maintained its ‘outperform’ rating and has set a new target price of ₹ 370 for Zomato, while the earlier target was ₹ 353. HSBC has also given it a ‘buy’ rating and has set the target at ₹ 330. Nomura has given a target price of ₹ 320 for Zomato and has recommended ‘buy’. Nuvama has also maintained its ‘buy’ recommendation and increased the target price from ₹ 285 to ₹ 325.