Zomato Shares See Rally Fade Ahead Of Q3 Earnings

Shares of Zomato gained over 1% to reach ₹55.05  as the markets opened on Thursday.

What Happened: The online food delivery company saw its share surge over 10% on Wednesday after global brokerage firm CLSA put out its positive growth outlook ahead of the company's quarterly earnings report scheduled for Feb. 9.

The firm raised the earning estimates for Zomato for the next two financial years by 4-8%. It also sees Zomato continuing its march toward profitability in Q3.

The company had a ‘buy' rating on the stock with a target price of ₹70. Domestic Brokerage Motilal Oswal Financial Services had a similar stance with a target price of ₹67.

The news sent shares of the company soaring early morning on Wednesday, then late afternoon a tweet from the company's founder Deepinder Goyal provided further impetus.

Goyal in the tweet congratulated Paytm founder Vijay Shekhar Sharma on Paytm “becoming profitable." 

See Also: Paytm Shares Shoot Up Another 6.5% As January Consumer Engagement Numbers Add To Q3-Print Momentum

"Sorry, a bit late to the party – was so busy working on our own profitability," he further added.

Many thought that the tweet from the founder was a hint towards Zomato turning profitable. 

With the company's earning report scheduled for later today, market experts say all eyes will be on the company's future plans.

Price Action: Zomato shares were trading 1.20% lower at  ₹53.65 as the markets opened on Thursday.

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