In the benchmark index of India’s top 30 firms, Zomato, a foodtech powerhouse, became the first Indian startup to reach the Bombay Stock Exchange (BSE) Sensex 30, taking the place of JSW Steel Limited.
Zomato’s participation in the SENSEX comes after a year of impressive performance. The stock has increased by 114.29% over the last year, 124.79% so far this year, and 38% during the last six months.
With a total market value of Rs 2.68 lakh crore (about $31.9 billion), Zomato’s shares fell 3.15% to Rs 278.70 on the Bombay shares Exchange on Monday after being included in the Sensex 30.
Zomato’s operating revenue increased by an astounding 68.5% from the second quarter of the current fiscal year to the second quarter of FY24, from Rs 2,848 crore to Rs 4,799 crore. In the quarter that ended in September, the Gurugram-based company’s net profit increased by 4.8 times to Rs 176 crore.
During the second quarter of the current fiscal year, its fiercest rival Swiggy reported revenue of Rs 3,601 crore and a net loss of Rs 625 crore. The newly listed company’s market value is Rs 1,32,695 crore, or approximately $15.8 billion, and its shares are now trading at Rs 592.8 each.
Last month, Zomato also obtained $1 billion from QIIs, or qualified institutional investors. Even if the BSE Sensex is still a smaller reflection of India’s investment potential than, example, the 50-share NSE Nifty, the money keeps the company with enough powder for future investments, even as the stock will profit from index investing now.
The inclusion of Zomato in the index is a huge endorsement of its ostensibly high-risk strategy, in which the company has consistently pushed the envelope in an effort to gain a competitive advantage. The company has done enough to meet the high expectations and valuations of investors thus far, whether it is through the acquisition of Blinkit, innovative communication tactics, or investments in other firms.
