Food and grocery delivery platform Zomato traded at its highest price in the last year at Rs 84.50 before paring some gains. At 1511 IST, Zomato’s scrip was trading 6.1% higher than its previous close, at Rs 82.20 per share on the BSE.
Shares of PB Fintech, which operates the Policybazaar platform, also touched a 52-week high of Rs 779.85 apiece. At 1511 IST, PB Fintech’s stock was up 4.1% at Rs 764.45 on the BSE.
On June 9, the Zomato stock closed the day’s trade above its issue price of Rs 76 at the time of its initial public offering (IPO) in 2021. The company’s stock had listed on the stock exchanges at a premium of Rs 125.
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In a research note dated July 10, brokerage firm ICICI Securities said Zomato is expected to have outpaced most quick-service restaurants (QSRs) “on a like to like basis” in the quarter ended June 30. The brokerage firm also said that it expected Zomato to record 9.2% year-on-year growth in its food-delivery gross order value (GOV), and 6.8% growth sequentially.
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Zomato is yet to announce its earnings for the June quarter.“We think this (growth in Zomato’s food delivery GOV) was aided by increased participation from Zomato Gold members. We estimate a marginal improvement in food AOV (average order value) of 0.8% quarter-on-quarter (QoQ), as we think higher cart sizes should more than compensate for lower blended delivery charges (-2% QoQ),” ICICI Securities had said.
Following the March-quarter results, released in May, several brokerages had taken a bullish view of Zomato. Last July, the company’s share price had sunk to a 52-week low of Rs 40.55 on the BSE.
On May 19, Zomato reported that its earnings before interest, taxes, depreciation, and amortisation (ebitda) had turned positive at Rs 28 crore, excluding the quick commerce business, for the quarter ended March 31. The company had also said it aimed to achieve net profit on a consolidated basis in the next four quarters.
PB Fintech
The Policybazaar parent, which also went public in 2021, offered its shares in the Rs 940-980 range, and listed at a 17% premium on the stock exchanges. While the stock is still trading below its listing price of Rs 1,150, it has gained over 11% in the last two days alone.
Following the company declaring its March-quarter and full year FY22 results, brokerages, feeling bullish, had raised the stock price target.
The Gurgaon-based financial services company had reported a loss of Rs 8.9 crore for the three months ended March 2023 compared with a loss of Rs 220 crore in the corresponding period last year. In the December quarter, the loss stood at Rs 87 crore.
Revenue from operations jumped 61% year on year to Rs 869 crore for the three months ended March 2023, up from Rs 540 crore in the corresponding period last year.
Last November, PB Fintech’s stock had fallen to a 52-week low of Rs 356.20 apiece.
Meanwhile, shares of other newage companies traded between 27-43% lower than their respective 52-week highs. While Delhivery’s stock was trading 43% lower on the BSE, CarTrade Tech was down 27% from its 52-week high.
Last month, ETtech had reported that newage companies have together regained nearly one-third of the wealth investors in their shares had lost last year, thanks to their efforts towards profitability, reducing overheads and also due to rationalisation in their strategy on acquisition.
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