The stock had last hit a year-high on September 18, when it touched Rs 105 in intraday trade.
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The Gurugram-based company’s market capitalisation stood at around $10.8 billion onTuesday. Its market capitalisation had breached the$10-billion mark in August on the back of its maiden profit.
The Deepinder Goyal-led company on August 3 reported its first-ever consolidated quarterly net profit at Rs 2 crore, on the back of higher order frequency from subscribers of its loyalty programme. This was on the back of a 71% surge in revenue to Rs 2,416 crore. It had reported a loss of Rs 186 crore in the year-ago period.
Additionally, the stock’s value has surged in the last eight months. Mutual funds have increased their investments in Zomato, making it one of the top buys of domestic fund houses in August, with purchases exceeding 80 million shares. Compared to its closing price on December 30, 2022, the stock has surged more than 78% in this calendar year.
Rival Swiggy to list soon?
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The surge in Zomato’s share price comes amid reports of its rival Swiggy planning to go public soon. The SoftBank-backed food delivery company is eyeing a 2024 stock market listing and has initiated talks with bankers to assess its valuation, after halting the process for months due to weak markets, according to a Reuters report on August 25. Swiggy was last valued at $10.7 billion in a January 2022 funding round, when it raised $700 million. However, since then the Bengaluru-based company has seen several markdowns from its investors, including Atlanta-based Invesco which trimmed its valuation by 33%, ET had reported in May.
Invescohad earlier marked down its investment in Swiggy by 23%, as ET reported in April. AnotherUS-based asset management firm, Baron Capital Group, marked down its valuation of Swiggy by 34% to $7.1 billion as of December 2022.