Zomato Joins BSE Sensex, Replacing JSW Steel in Benchmark Rejig

Zomato shares are in focus as the food delivery giant becomes the first new-age tech firm to join the BSE Sensex. This index reshuffle, effective December 23, replaces JSW Steel with Zomato in the 30-share benchmark.

Zomato’s Remarkable Rally

Zomato’s stock has surged by 126% over the past year and 43% in the last 6 months, significantly outperforming the Sensex, which gained 10.7% during the same period. JSW Steel, by contrast, delivered 9% returns over the year. UBS attributes Zomato’s stock rally—nearly 150% in 18 months—to improved unit economics and progress toward breakeven, particularly in its quick commerce (qcom) segment.

Zomato’s Q2FY25 Performance

Zomato recorded a remarkable 389% jump in its consolidated net profit for the second quarter of FY25, reaching ₹176 crore, compared to ₹36 crore in the same quarter last year. This growth was fueled by improved food delivery margins and the quick commerce business nearing breakeven.

The company’s revenue from operations surged 68% year-on-year to ₹4,799 crore in Q2FY25. Adjusted EBITDA also saw a significant rise, climbing to ₹331 crore from ₹41 crore a year ago.

Additionally, Zomato reported a 55% year-on-year increase in gross order value (GOV) across its B2C businesses, totalling ₹17,670 crore during the quarter.

Broader Index Changes

The reshuffle extends beyond the Sensex to the BSE 100 index, adding 6 new entrants: Jio Financial Services, Suzlon Energy, Adani Green Energy, Adani Power, Samvardhana Motherson International, and PB Fintech. These stocks replace Ashok Leyland, P.I. Industries, IDFC First Bank, IRCTC, UPL, and APL Apollo Tubes.

Zomato share price is trading at ₹280.45, down by ₹1.65 (0.58%) as of 10:26 am on December 23, 2024. The stock opened at ₹273.90, with an intraday high of ₹281.30 and a low of ₹273.00. 

Zomato’s market capitalisation stands at ₹2.67 lakh crore, with a P/E ratio of 334.54. Over the past 52 weeks, the stock has reached a high of ₹304.70 and a low of ₹120.20.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.