Food delivery platform Zomato’s shares are on the rise amid a wider post-Q3 earnings rebound among new-age tech stocks.
What Happened? Zomato shares were trading lower early last week after the company posted its Q3FY23 results. The popular services player reported consolidated losses of ₹346.6 crore, up 38% from ₹250.8 crore in the previous quarter.
The company’s shares sunk around 6% with its share value dropping to ₹52 on Feb.9 at the BSE before commencing a recovery run early last week. Zomato shares are currently up by close to 12% over the past 5 days.
A major reason for Zomato’s strong performance lately has been the bullish stance analysts have sided with despite what appeared to be an underwhelming quarterly earnings scoresheet.
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Global analysts Jefferies and Morgan Stanley stood positive on the food tech company turning it around, seeing over 50% upside with price targets of ₹100 and ₹82 respectively.
To add to the spurt, CEO Deepinder Goyal took to Twitter on Feb. 16 to announce the launch of a project named ‘The Shelter Project' which aims to support delivery partners ahead of the sweltering heat of summer.
Under the project, Zomato will build public infrastructure called Rest Points that would offer clean drinking water, phone-charging stations, washrooms, internet, an all-day helpdesk, as well as, first aid support.
Price Action: Zomato shares were trading 2.29% higher at ₹55.90 on Tuesday afternoon.
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