Zomato’s Shares Gain 200% Over 1 Year, Hitting Historic Highs

Zomato's (NSE: ZOMATO) stock prices have soared to an all-time high, with shares hitting INR 298.25 on the Bombay Stock Exchange (BSE) today, up 2.36%. With gains of 138.84% on a YTD basis, the impressive rally comes as a testament to the company's robust financial performance and optimistic growth outlook provided by analysts.

Bolstering the positive momentum, brokerage giant JP Morgan reiterated its “overweight” stance on Zomato and raised its price target for the company's shares from INR 208 to an ambitious INR 340. This endorsement underscores the investment firm's belief in Zomato's potential for growth and profitability.

Financially, Zomato has exhibited an astonishing turnaround, with its first-quarter profit for the financial year 2025 (Q1 FY25) escalating to INR 253 crore. This performance is markedly improved from the INR 2 crore profit posted in the corresponding quarter of the previous year. This leap in profitability can be attributed to the substantial 74% increase in revenue from operations for the same period, with figures rising from INR 2,416 crore in Q1 FY24 to INR 4,206 crore in Q1 FY25.

Contributing to Zomato's 1 year share price increase of over 200% are several factors, including the company's enhanced profitability and the integration of innovative services like group ordering and ticket rescheduling, which presumably improved customer engagement and retention.

Additionally, the financial markets received an external stimulus from the US Federal Reserve's decision to reduce interest rates by half a percentage point, marking the institution's first rate cut in four years. This policy move has had wide-reaching implications, instilling optimism in global financial markets and supporting the upward trajectory of stocks like Zomato's.

Zomato's elevated share price not only reflects the company's operational successes and strategic expansions but also mirrors the favorable conditions in the global financial markets. As investors continue to show faith in Zomato's growth narrative, the food delivery giant's stock shows no signs of slowing down amidst the buzz of market optimism. With a trajectory set firmly towards growth and innovation, stakeholders look forward to what the future holds for the company.