Shares of food delivery firm Zomato Ltd jumped more than 18 per cent on Tuesday and were set for their best session, a day after the Ant Group-backed company recorded more orders and narrowed its losses in the June quarter.
The Gurugram-based company, which operates in more than 1,000 towns and cities, posted a quarterly loss of Rs 186 crore on Monday, compared with a loss of Rs 356 crore last year.
Revenue from operations, which mostly comes from its mainstay food delivery and related fees it charges restaurants for using its platform, rose 67 per cent to Rs 1,414 crore in the three-month period that ended in June 30.
Gross order value or the total value of all food delivery orders placed online on Zomato's platform rose 41.6 per cent, and the company said its adjusted EBITDA for the food delivery unit broke-even for the quarter.
"We like Zomato for its long runway for growth, steady market share gains, and fast pivot to profitability, despite challenges – slower growth than in the last two years and heavy investments in Quick Commerce, where profitability is not in sight in the near term," Morgan Stanley analysts said.
The brokerage resumed coverage of the stock with an 'overweight' rating and price target of 80 rupees.
The stock, which lost nearly 60 per cent from its debut price a year ago, was last up 16.5 per cent at 54 rupees, bouncing from record lows seen last week.
Published 02 August 2022, 06:40 IST