Zomato shares in news today amid bulk deal of 4.5 crore shares

Shares of online food delivery platform are in news today after Motilal Oswal Mutual Fund offloaded 4.5 crore equity shares in a bulk deal on Monday.  The bulk deal involved sale of 0.51 percent of paid up equity, in the food delivery giant via open market transactions.  

The shares were sold at an average price of Rs 138.15 per share. Motilal Oswal Flexi Cap Fund owned 15.94 crore shares or 1.83 percent stake in Zomato at the end of December 2023.  

Zomato shares were trading flat at Rs 134.45 on BSE today. Earlier, Zomato stock opened higher at Rs 135.15. In a year, the Zomato stock has risen 154% and climbed 7.83% in 2024.  

A total of 2.68 lakh shares of Zomato changed hands amounting to a turnover of Rs 3.62 crore on BSE. The market cap of the firm rose to Rs 1.17 lakh crore on Tuesday.    

In terms of technicals, the relative strength index (RSI) of Zomato stock stands at 58.3, signaling it's trading neither in the overbought nor in the oversold zone. Zomato shares are trading higher than the 20 day, 50 day, 100 day and 200 day moving averages. 

International brokerage CLSA has assigned a share price target of Rs 168 on the Zomato stock. 

Zomato is its top pick in the consumer space. With competitive pricing in addition to the convenience of a 10-20 minute delivery, CLSA believes quick commerce can be viable across cities in India, beyond the metros and tier-1 cities.  

"With Blinkit achieving a positive contribution in Q2FY24, we believe added scale as they expand their dark store network and city reach will drive positive adjusted Ebitda in FY25," the foreign brokerage said.  

Zomato reported a net profit of Rs 36 crore in the September 2023 quarter against a net loss of Rs 251 crore during the same quarter last year. Revenue in Q2 climbed 72% year-on-year to Rs 2,848 crore from Rs 1,661 crore in the September 2022 quarter.  

On a sequential basis, the company's revenue rose 18%, while the operating loss remained nearly the same. During the June quarter, Zomato had reported a net profit of Rs 2 crore.  

 

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