Zomato Ltd., the prominent food delivery aggregator, has achieved a significant milestone by surpassing Tata Motors Ltd. in market capitalization. As of December 18, 2024, Zomato’s market cap stands at approximately ₹2.83 lakh crore, a 162% increase year-to-date, overtaking Tata Motors’ ₹2.79 lakh crore and Bajaj Auto’s ₹2.5 lakh crore.
This surge in valuation precedes Zomato’s inclusion in the BSE Sensex, India’s benchmark stock index, effective December 20, 2024. The company will replace JSW Steel Ltd., which has a market cap of ₹2.31 lakh crore. The Sensex comprises 30 large, financially sound companies across key sectors, and Zomato’s inclusion is expected to attract significant investor attention. Analysts anticipate an inflow of approximately $513 million (₹4,356 crore) into Zomato’s shares due to this inclusion.
Brokerage firm Morgan Stanley has expressed optimism about Zomato’s future performance, projecting a potential 75% increase in its stock price to ₹510 over the next year under favorable conditions. Morgan Stanley also highlighted the strong positioning of Blinkit, Zomato’s quick commerce arm, noting its superior unit economics and robust consumer base, which should help maintain Blinkit’s market share above 40%.
As of December 18, 2024, Zomato’s shares are trading at ₹291.85 on the NSE, reflecting a 127% increase over the past 12 months. Among the 26 analysts tracking the stock, 24 recommend a ‘buy,’ with an average 12-month price target indicating a potential upside of 3.7%.
This remarkable growth underscores Zomato’s expanding influence in the Indian food delivery and quick commerce sectors, positioning it as a formidable player in the market.
