As of December 20, Zomato Ltd., a leading food delivery aggregator, reached a market capitalization of Rs 2.83 lakh crore, reflecting a remarkable 162% surge year-to-date. This achievement has allowed Zomato to surpass Tata Motors Ltd.’s market cap of Rs 2.79 lakh crore, as well as Bajaj Auto’s valuation of Rs 2.5 lakh crore. This milestone comes ahead of Zomato’s inclusion in the Sensex, the main index of the Bombay Stock Exchange (BSE).
Zomato Joins Sensex with Strong Market Outlook
Zomato’s achievement comes as the company is set to replace JSW Steel in the Sensex, effective December 20. The BSE announced this decision last month, with JSW Steel having a market capitalization of Rs 2.31 lakh crore. The Sensex, which includes 30 financially stable and well-established companies, is selected based on their average six-month float-adjusted market capitalization. With Zomato joining this prestigious index, it is expected to bring an influx of $513 million (around Rs 4,356 crore), according to Nuvama Alternative & Quantitative Research.
Zomato’s stock has risen 136% year-to-date, attracting a positive outlook from analysts. In a recent report, Morgan Stanley predicted a potential 75% increase in the stock price, projecting it to reach Rs 510 over the next year, underscoring the company’s strong market position. Analysts are also optimistic about Zomato’s quick commerce arm, Blinkit, highlighting its solid market positioning despite growing competition.
Zomato Stock Faces Slight Decline, Analysts Remain Bullish
Zomato’s stock is currently trading at Rs 291.85, reflecting a 1.67% decrease on the NSE, while the Nifty 50 index has fallen by 0.65%. Among the analysts tracking the stock, 24 have given it a “buy” rating, with only two recommending a “sell.” The average 12-month target price indicates a potential upside of 3.7%.
