Zomato shares surge 6 per cent after market value rises in July 2022

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Zomato shares surge 6 per cent after market value rises in July 2022

Shares of Zomato rose by 6 per cent in early trade after data showed the market value of the food delivery firm across asset management companies AMCs rose to Rs 1,343 crore in July 2022 against Rs 963 crore in June. The stock of Zomato was higher at 65.50 against the previous close of Rs 65.30 on the BSE today. It gained 5.97 per cent on the BSE after it reached an intraday high of Rs 69.20. In 2022, Zomato shares fell 50.38 per cent and 49.48 per cent in a year.

The stock hit a 52 week high of Rs 169.10 on November 16, 2021 and a 52 week low of Rs 40.55 on July 27, 2022.

Total 151.36 lakh shares of Zomato Ltd changed hands on BSE to a turnover of Rs 101.57 crore. On BSE, the firm's market cap rose to 54,095 crore.

The share price of Zomato traded 4.59 per cent higher at Rs 68.30 at 11: 15 am.

ALSO READ: Zomato offers to help 7-year-old boy turned delivery executive after father's accident.

In the last month, HDFC AMC's holding in Zomato stock increased by more than 707 per cent to 1.13 crore shares against 14 lakh shares in June, according to the data. The market value of the mutual fund went up to Rs 53 crore on Zomato against Rs 8 crore in June.

ALSO READ: Xomato, Paytm, Nykaa Stocks: Why PEVC Firms Will Earn Profit No Matter When They Sell

The firm announced its Q 1 earnings on August 1 and its shares of Zomato have gained 41 per cent since. In the first quarter of the current fiscal, Zomato reported a net loss of Rs 356 crore compared to a year ago net loss of Rs 186 crore.

Zomato's revenue from operations, which mostly comes from its mainstay food delivery and related fees it charges restaurants for using its platform, went up by 67 per cent to Rs 1,414 crore in the June quarter against Rs 844 crore a year ago.

JM Financial has given a buy call for the Zomato stock with a target price of Rs 115.

We remain bullish about the company's long-term growth prospects in the hyperlocal delivery space, because we believe it is well positioned to benefit from robust industry tailwinds such as improving tech penetration and rising income share of digitally native millennials GenZ. We have raised our core business EBITDA margin estimates over FY 23 -- 25 basis incremental disclosures in Zomato's FY 22 annual report, leading to upward adjustment of our EPS estimates. JM Financial stated that we retain our 15 Yr DCF target price for core business at Rs 115, while highlighting that Blinkit merger integration can add 8 per cent value to our target price.

ALSO READ: 7-year-old delivers food for Zomato after dad meets with accident.

After raising $33.5 million about Rs 270 crore in a funding round co-led by Temasek and Lightrock India, Shiprocket has become India's 106th unicorn. Today, positive sentiments around the stock were also caused by the development.

The funds will help Shiprocket extend its operating system by building newer software and intelligence products and deepening its capabilities on the fulfilment and same-day delivery experience, along with a new capability on the fulfilment and same-day delivery experience, it said.

Sensex fell to 59,984 275 pts, and Nifty lost 76 pts to 17,867 in the afternoon trading session.