Zomato’s share price surged on Tuesday on the positive outlook for the firm stemming from the ICC Men’s Cricket World Cup 2023.
What Analysts Say: Zomato could potentially emerge as the foremost beneficiary in the post-Covid era during the World Cup, Karan Taurani, Elara Capital’s senior vice president and research analyst, said in an interview with CNBC-TV18.
“If you look at the market share numbers over the last three-four years, pizza has lost market share as a category within the overall QSR chain. It’s a win-win for burger, fried chicken for aggregators like Zomato, over the near to medium-term,” Taurani said.
Better Than Pizza? In previous World Cups, Jubilant FoodWorks, the operator of Domino’s Pizza in India, held the mantle of the biggest beneficiary due to its speedy delivery service.
However, this time, Taurani suggests that Zomato could steal the spotlight, stating, “We have seen adoption wherein delivery of food has moved to other categories and not just pizza. Zomato is able to replicate or even do better as compared to Jubilant in terms of the overall delivery experience.”
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Brokerage firm Motilal Oswal anticipates that Zomato, as an online food delivery platform, is well-positioned to capitalise on increased orders and restaurant partnerships during the ICC World Cup. This potential boost is particularly relevant for home-viewing gatherings, where Zomato can utilize marketing campaigns and special offers to attract a larger user base.
Price Action: Zomato’s share price jumped 2.56% to 104.10 in afternoon trading on Tuesday. The stock has gained nearly 73% so far this year.
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