Zomato is an Indian multinational online food delivery company headquartered in Gurugram, Haryana. It was founded in 2008 by Deepinder Goyal and Pankaj Chaddah. The company went public in July 2021 and is listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
As of March 8, 2023, Zomato’s share price is ₹51.05 per share. The company’s market capitalization is ₹60,329.50 crore.
Can Zomato’s share price increase?
There are a number of factors that could contribute to an increase in Zomato’s share price. These include:
- Increased user base: Zomato has been growing its user base at a rapid pace. In the financial year 2022, the company’s user base grew by 52%. This growth is being driven by a number of factors, including the increasing popularity of online food delivery in India, the company’s strong marketing campaigns, and its expansion into new markets.
- Improved profitability: Zomato has been working to improve its profitability. In the financial year 2022, the company’s adjusted EBITDA margin improved by 100 basis points. This improvement was driven by a number of factors, including the company’s focus on cost control, its expansion into new markets, and the growth of its advertising business.
- Acquisitions: Zomato has been actively pursuing acquisitions in recent years. In 2022, the company acquired Blinkit, a quick commerce company. This acquisition will help Zomato to expand its reach in the fast-growing quick commerce market.
- Strong management team: Zomato has a strong management team with a proven track record of success. The company’s CEO, Deepinder Goyal, is a well-respected entrepreneur who has been with the company since its inception.
Overall, there are a number of factors that could contribute to an increase in Zomato’s share price. However, it is important to note that there are also risks associated with investing in the company. These risks include:
- Competition: Zomato faces stiff competition from other online food delivery companies, such as Swiggy and Uber Eats.
- Regulation: The food delivery industry is subject to regulation by the government. These regulations could impact Zomato’s business.
- Economic conditions: The Indian economy is currently facing a number of challenges, such as high inflation and rising interest rates. These challenges could impact Zomato’s business.
Investors should carefully consider all of these factors before investing in Zomato.
Read Why is Zomato Share Falling?