Highlights
Zomato Makes History on the BSE Sensex 30
Foodtech leader Zomato has achieved a significant milestone as the first Indian startup to be included in the Bombay Stock Exchange (BSE) Sensex 30, taking the spot previously held by JSW Steel Limited in this prestigious index of India’s top 30 companies.
Strong Stock Performance
Zomato’s entrance into the SENSEX reflects its robust performance over the past year:
- Stock price growth of 38% in the past six months
- Year-to-date gain of 124.79%
- Annual increase of 114.29%
However, on Monday, following the announcement of its inclusion in Sensex 30, Zomato’s stock experienced a drop of 3.15% (as of 12:28 PM), settling at Rs 278.70 on the Bombay Stock Exchange. The company’s total market capitalisation stands at Rs 2.68 lakh crore (approximately $31.9 billion).
Impressive Financial Growth
For the second quarter of the current fiscal year, Zomato reported remarkable results:
- Operating revenue surged by 68.5% quarter-on-quarter, reaching Rs 4,799 crore, up from Rs 2,848 crore in Q2 FY24
- A net profit increase of 4.8 times, achieving Rs 176 crore for the quarter ending September
In contrast, its competitor Swiggy announced revenue of Rs 3,601 crore, with a net loss of Rs 625 crore during the same fiscal period. Currently, Swiggy trades at Rs 592.8 per share, with a total market capitalisation of Rs 1,32,695 crore (approximately $15.8 billion).
Strategic Investments and Future Prospects
Last month, Zomato secured $1 billion from qualified institutional investors (QIIs). This funding positions the company well for future ventures, allowing it to invest strategically while benefitting from index investments. It is worth noting that the BSE Sensex, while significant, offers a narrower view of India’s investment landscape compared to the 50-share NSE Nifty.
Zomato’s inclusion in the index serves as a strong endorsement of its ambitious, high-risk strategies. The company has continually sought to innovate, whether through the acquisition of Blinkit, creative marketing initiatives, or investments in start-ups. This approach has helped maintain impressive valuations and met investor expectations. The recent fundraising further emphasises Zomato’s commitment to substantial investments when opportunities arise. The inclusion in the Sensex marks a logical progression for this pioneering tech firm, leaving many to wonder what new heights it will reach next.