Zomato Shares Regain Momentum As Credit Suisse Sees Potential Growth Spurt

Zomato’s share price saw a rebound on Thursday after global brokerage firm Credit Suisse revealed its positive stance on the company.

What Happened? Credit Suisse speaking on the internet economy in India told ETNow on Thursday that it sees a slowdown in growth, which could affect a number of companies.

The brokerage highlighted a channel shift in urban consumption patterns with an increased focus towards offline and wallet share, which could impact the profitability figures of certain companies.

That said, it does clarify that Zomato could see a spurt “given favourable industry dynamics and push towards profitability" as e-commerce growth begins normalizing towards the trend line.

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The popular food delivery platform on Wednesday launched a new service that offers home-styled cooked meals for users, ditching its 10-minute delivery business dubbed ‘Instant’.

Beginning with select areas of Gurugram, Zomato Everyday aims to tap a void that the company claims is yet to be drawn on.

The company’s share price did not catch on with the launch of Zomato Everyday on Wednesday, however, Credit Suisse’s recent comments appear to have lifted spirits a fair bit on Thursday.

Since run at the bourses through the week has been largely positive after a number of analysts revealed a bullish stance towards the company despite an underwhelming quarterly earnings scoresheet.

Price Action: Zomato shares were trading 3.68% higher at ₹54.95 when markets closed on Thursday.

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Posted In: Credit Suisseinternet companiesZomato