Zomato Shares Reach New Record High at INR 214; Stock Up 5X in Two Years

Zomato's shares surged nearly 3% in early trading, hitting a new all-time high of INR 214 on the BSE on July 9. This marks the third consecutive session of gains for the foodtech giant, driven by positive sentiment and a broader market uptrend. The stock eventually closed 2.2% higher at INR 212.5.

Recent company developments include shareholder approval for a new employee stock option pool of 18.26 Cr shares and the suspension of its logistics business, ‘Xtreme,’ due to low demand. Despite these changes, JM Financial revised its price target for Zomato to INR 230 from INR 250, suggesting that ESOP grants should be tied to measurable performance outcomes.

Key Highlights:

• Stock Performance: Shares reached INR 214, closing at INR 212.5, marking a 2.2% increase.
• Recent Developments: Approval for new ESOP pool and suspension of ‘Xtreme’ logistics business.
• Analyst Insight: JM Financial lowered the price target, emphasizing performance-based ESOP grants.

Zomato's stock has quintupled in value over the past two years, reflecting its robust growth and market optimism.