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Zomato Share Price Takes a Dive After Q4 Earnings (May 14, 2024)
Zomato’s share price took a tumble today, defying the positive market sentiment. As of May 14th, 2024 (afternoon IST), the stock is trading at ₹189.95, a decrease of over 2% compared to yesterday’s closing price.
Zomato share price fell 6% in early trade on Tuesday after the company announced its Q4 results. Zomato shares declined as much as 5.98% to 182.10 apiece on the BSE.
Zomato began the week on a slightly sour note, with its share price dipping even as the broader market rose. As of May 14th, 2024, Zomato is trading at ₹189.50, down 2.47% from yesterday’s closing price.
Zomato share price of online food delivery giant Zomato fell sharply on Tuesday even as the company announced Q4 results a day ago.Zomato shares fell as much as 6% in early trade, but rebounded to trade 1.63% lower at Rs 190.55 at around 10:45 am.
The company reported a consolidated net profit of Rs 175 crore, compared to a loss of Rs 188 crore in the same period a year ago. Its revenue from operations stood at Rs 3,562 crore, compared to Rs 2,056 crore in the corresponding period a year ago.
Market Movement
Zomato share price This decline comes despite a positive day for the Indian stock market. The NSE Nifty 50 and BSE Sensex both closed higher today, suggesting a bullish overall sentiment. However, Zomato seems to be bucking this trend.
While Zomato delivered a solid performance in the March quarter, its shares fell today. According to market experts, this could be due to profit booking and ongoing market volatility.
In fact, multiple brokerages continue to maintain their bullish outlook on Zomato stock and some have even raised their target price.
Emkay Global said in a note that the company’s management is bullish on Blinkit and aims to maintain its adjusted EBITDA close to break-even levels over the next few quarters.
It noted that Blinkit intends to increase its dark store count from 525 in the March quarter of the fiscal year 2024 to 1,000 by the conclusion of the fiscal year 2025.
At the operating level, the company posted an EBITDA of ₹86 crore, an improvement from the loss of ₹226 crore incurred during the same period last year
Possible Reasons for the Dip
Zomato Share Price There could be a few reasons behind Zomato’s share price movement. Recent earnings reports might be playing a role. While Zomato did report a profit in Q4, some investors might have been expecting stronger growth. Additionally, the company’s focus on expansion through quick commerce ventures like Blinkit/Hyperpure could be leading to higher expenses, which might not be sitting well with some shareholders.
Analyst Viewpoints Differ
Zomato Share Price It’s important to note that analyst opinions on Zomato remain divided. While the share price dipped todays , some brokerages continue to hold a bullish view. They point to Zomato’s impressive revenue growth and the potential of the quick commerce segment to drive future profits.
Uncertain Outlook
Zomato Share Price Zomato’s short-term stock price movement seems uncertain. Investors are likely waiting to see if the company can translate its expansion plans into sustainable profitability. Long-term prospects, however, hinge on Zomato’s ability to improve its bottom line. Zomato’s quick commerce arm Blinkit achieved operational EBITDA break-even in March 2024. March quarter grew across B2C businesses.
Stay Informed
Zomato Share Price This is a developing story, and Zomato’s share price could a fluctuate throughout the day. Keep an eye on financial news outlets for further updates.
Nice .. very well informed
Thanks…