zomato share price: Zomato shares plunge over 4% on block deal worth Rs 622 crore

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Shares of Zomato plunged over 4% to the day’s low of Rs 133.35 on the NSE on Monday following a block deal which saw equity worth Rs 621.68 crore changing hands at Rs 138.15 per share.

While the details of the buyers and sellers were not known at the time of filing the story, data on NSE showed the deal getting executed ahead of the market opening time. The transaction involved 4.50 crore shares changing hands.

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The block deal took place at a discount of 1%. The stock had closed at Rs 139.55 on Friday after hitting a fresh 52-week high of Rs 141.50.

After hitting a 52-week low of Rs 44 on January 25, 2023, the stock has witnessed a sharp rally and delivered over 220% returns as of January 12, 2024.

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The rally has been on account of strong quarterly earnings posted by the company in back-to-back quarters between April and September where the food delivery platform reported net profits against losses in previous quarters.

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The online platform improved its profitability significantly for the quarter ended September 2023 to Rs 36 crore. The company had posted a surprise profit of Rs 2 crore in the preceding June quarter and a loss of Rs 251 crore in the year-ago period.Revenue from operations surged 71% year-on-year (YoY) to Rs 2,848 crore, which was also higher than Street expectations of Rs 2,607 crore. The gross order value (GOV) across its B2C businesses (food delivery + quick commerce + going-out) grew 47% YoY to Rs 11,422 crore.

The GOV growth was almost entirely led by growth in order volumes, while the average order value remained largely flat. Another key driver of GOV growth was the growing adoption of Zomato’s “Gold” program, which drove higher ordering frequency amongst members.

The stock has delivered multibagger returns of 151% in the past 12 months.

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