New Delhi [India], August 7 : Zomato shares rose sharply for the second straight day after the company reported its first-ever quarterly profit.
Shares of the food aggregator and delivery company Zomato soared 10 per cent on Friday and about 5 per cent today.
At the time of writing this report, Zomato shares were trading 5 per cent higher at Rs 99.90. Its intraday high and low were Rs 102.85 and Rs 97.0, respectively.
The company reporting profits led to strong interest in its stocks by investors.
The food delivery platform yesterday reported a consolidated net profit of Rs 2 crore for the April-June quarter of 2023 against a loss of Rs 186 crore in the same quarter last year, data showed. It reported a loss of Rs 189 crore in the January-March 2023 quarter.
Further, moving on to its revenue from operations, it was at Rs 2,416 crore in the June quarter, a 71 per cent against from Rs 1,414 crore reported in the year-ago period.
“This company in a duopoly business has a long runway for growth,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, had said.
“For those investors who bought at low rates partial profit booking is fine. It makes sense to remain invested in this growth stock,” Vijayakumar said.
July marked Zomato's completion of its second year as one of the new-age companies listed on the Indian stock exchanges.
Listed on July 23, 2021, the food aggregator's initial public offering was a success as it was subscribed 38.25 times. It made a stellar debut at a premium of 53 per cent.
Even though the company reported healthy gains on its listings on the stock exchanges back then, it could not capitalize on it later.
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