Mumbai: There has been a significant increase in the shares of Zomato, an online food delivery company. The company's shares rose by more than 17% after it announced excellent results for the first quarter of the current financial year. Just a year ago, Zomato recovered from a loss and turned profitable for the first time, with a profit of only 2 crore rupees. This led to various memes going viral on social media, with some users advising Zomato's CEO Deepinder Goyal that they should have taken that amount from them. However, the company's fortunes have now changed, and Zomato has reported a record-breaking profit.

Zomato's shares soar despite market decline

On the strength of the quarterly results, Zomato's shares soared like a rocket on Friday. While the Indian stock market was declining, Zomato's shares rose by 19% and reached ₹278.7. After the excellent results of the June quarter, the shares continued to rally, and brokerages also seemed pleased with this stock. Following the quarterly results, some brokerage firms gave a 'buy' rating to this share.

Zomato's June 2024 quarter results

In the first quarter of the financial year 2024-25, Zomato's profit increased 126 times annually, and the company earned a net profit of ₹253 crore in the last quarter. Zomato's operating income also increased by 75%, reaching ₹4,206 crore, compared to ₹2,416 crore in the first quarter of the previous financial year. Thus, on a quarterly basis, the company's revenue was ₹3,562 crore in the last quarter of the financial year 2023-24. Additionally, in the June quarter, the company's EBITDA reached ₹177 crore.

Brokerages bullish on Zomato

After the company announced better-than-expected results in the first quarter, several brokerage houses increased the target price of Zomato's shares. Brokerage firm Nuvama maintained a 'buy' rating on Zomato's shares and increased the target price from ₹245 to ₹285. At the same time, leading domestic brokerage Motilal Oswal Financial Services also maintained a 'buy' rating on Zomato's shares and set a target price of ₹300, which is 28% above the current price.