Shares of Zomato zoomed over 18 per cent in early trade amid a strong market today after the food delivery firm said its quarterly loss narrowed led by an increase in orders for restaurant meals on its platform.
Zomato reported a net loss of Rs 186 crore for the quarter ended June 2022 against a net loss of Rs 356 crore year ago. Zomato stock gained 18.44 per cent at Rs 54.90 today against the previous close of Rs 46.35 on BSE.
The large-cap stock opened 7.87 percent higher at Rs 50 today. The stock has fallen 61 per cent in 2022 and lost 61.57 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 7, 2022.
Total 388.63 lakh shares of the firm changed hands amounting to a turnover of Rs 196.09 crore on BSE. The market cap of the firm rose to Rs 41,730 crore on BSE.
ALSO READ: Zomato Q1 net loss narrows to Rs 186 cr
Revenue from operations climbed 67.44 percent at Rs 1,413.9 crore in Q1 against Rs 844.4 crore logged in the year-ago quarter.
The company's adjusted revenue rose 18 per cent quarter-over-quarter (QoQ) and 56 per cent year-over-year (YoY) to Rs 1,810 crore in Q1FY23.
Adjusted EBITDA loss reduced to Rs 150 crore (-8 per cent of Adjusted Revenue) in the quarter under review as compared to Rs 220 crore (-15 per cent of Adjusted Revenue) sequentially.
Zomato's revenue from operations, which mostly comes from its mainstay food delivery and related fees it charges restaurants for using its platform, zoomed 67 per cent to Rs 1,414 crore in the June quarter against Rs 844 crore a year ago.
UBS has given a buy call on the stock with a target price of Rs 95.
"Q1 was another strong quarter and the firm logged EBITDA breakeven in food delivery. Believe growth drivers continue to remain strong and losses continue to reduce QoQ, which is a positive," said UBS.
Morgan Stanley is overweight on the stock with a target price of Rs 80
"Q1 was good quality beat, driven by healthy increase in MTUs, steady to improving AOVs, better monetisation (take rates) and break-even at segment level for food delivery. Sustained and steady execution over the coming quarters is a key to re-rating," added Morgan Stanley.
Goldman Sachs has given a buy call with a target of Rs 100 post Q1 show
"Q1 was inline on GMV front with improving profitability. Key positives were 1) AOVs sustaining at higher levels 2) food delivery segment seeing a narrowing of losses; 3) Blinkit scaling up. A key negative is subdued MTU print that could result in downside risk to GOV estimates," said Goldman Sachs.