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Shares of the online food delivery platform have rallied 19.19% in five trading sessions from its previous closing low of Rs 84.07 posted on 31 July 2023. The counter hit an all-time high of Rs 102.85 in intraday today. The stock has zoomed over 125% from its 52-week low of Rs 44.35 recorded on 25 January 2023.
On the BSE, 132.38 lakh shares were traded in the counter so far compared with average daily volumes of 42.73 lakh shares in the past two weeks.
The counter saw demand after the company reported profit for the first time in Q1 on 3 August 2023. Zomato reported a consolidated net profit of Rs 2 crore in Q1 FY24, as against a net loss of Rs 186 crore posted in Q1 FY23. Revenue from operations surged 70.86% to Rs 2,416 crore in the quarter ended 30 June 2023 from Rs 1,414 crore reported in Q1 FY23.
Adjusted EBITDA margin improved to 0.4% in Q1 FY24 as against negative 9% posted in the same period last year, driven by both cost side levers and revenue side levers, in addition to some accumulation of operating leverage due to growth in the business, said Ranjan.
In the food delivery business, Gross Order Value (GOV) growth was 13.9% YoY to Rs 7,318 crore during the period under review. Adjusted revenue stood at Rs 1,742 crore in Q1 FY24, registering a growth of 18.5% YoY.
Average monthly transacting customers grew 4.79% YoY to 17.5 million in Q1 FY24 as compared to 16.7 million in Q1 FY23.
Hyperpure revenue zoomed 126% YoY to Rs 617 crore in Q1 FY24. Adjusted EBITDA margin improved to negative 6% in Q1 FY24 as against negative 16% in Q1 FY23. Quick commerce business posted revenue of Rs 384 crore, up 134.15% as against Rs 164 crore in recorded in the corresponding previous quarter.
In last one month, the stock has moved 36.85% higher outperforming the Nifty 50 index which declined 5.94% in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 82.588. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock is trading above its 50-days, 100-days and 200-days simple moving average placed at 77.68, 67.65 and 63.04 respectively. These levels will act as crucial support zones in near term.
Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.
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