The food aggregator platform recorded a net loss of Rs 359 crore for the quarter ending March 2022, more than double the loss of Rs 134 crore recorded in the corresponding period last year.
However, the company’s consolidated revenue from operations rose to Rs 1,212 crore in the fourth quarter of 2021-22 compared to Rs 692 crore recorded in the corresponding period of the previous year, posting a year-over-year growth of 75%.
Following the increase in revenue, Zomato’s stock was up 19% to Rs 67.6 on Tuesday around 10:30 a.m. The script had stabilized at Rs 57 on Monday. The shares saw the largest intraday rise since their listing.
Due to the extraordinary intraday increase in branches, the market capitalization of the new age technology platform reached Rs 50,000 crore after a long time.
Adjusted EBITDA loss was reduced to Rs 220 crore, (-15 percent of adjusted revenue) in the fourth quarter of fiscal year 22 compared to Rs 270 crore (-19 percent of adjusted revenue) in the third quarter of fiscal year. 22, Zomato said in a regulatory filing.
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Global brokerage is largely positive over the counter and has target prices above the issue price indicated. They believe the worst is over for the company and the downside risk for investors is limited.
JP Morgan he said adjusted EBITDA losses continued to decline and gross order value (GOV) saw strong growth as orders returned. He said food delivery revenue rebounded for Zomato in the March quarter as he suggested a price target of Rs 130 for the stock.
city has a target of Rs 80 on the stock as it has revised its estimates to incorporate the FY22 numbers. He also spoke of a sequential 6 percent growth in GOVs and a decline in adjusted Ebitda losses to Rs 220 crore.
Morgan Stanley he kept the “overweight” for the food delivery company with a target of 135. He noted that the company is moving in the right direction, but it needs consistent execution to meet the high expectations.
Listed as of July 2021, Zomato’s shares were still 15% below the issue price of Rs 76. In addition, the meter corrected about 65% from its all-time high of Rs 169.10.