Zomato, the online food delivery giant, is set to join the prestigious BSE Sensex on December 23, replacing JSW Steel. Brokerage firm Nuvama projects inflows of approximately $513 million due to this rejig, reflecting Zomato’s stellar performance in 2024.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Zomato’s market dominance

The company’s market capitalization has surged to Rs 2.75 lakh crore, eclipsing leading automotive players Tata Motors (Rs 2.74 lakh crore) and Bajaj Auto (Rs 2.51 lakh crore). The stock is currently trading at Rs 289.20, marking a gain of two point two five per cent over the past five days and a year-to-date surge of one hundred thirty-two per cent.

Strong financial performance

Zomato has shown robust growth in 2024, reporting revenue of Rs 4,800 crore (up 68.5 per cent year-on-year) and net income of Rs 176 crore, a three hundred eighty-nine per cent increase. Its net profit margin improved to 3.67 per cent.

Impact of Sensex inclusion

Zomato’s addition to Sensex will prompt passive funds and ETFs tracking the index to buy its shares, driving inflows worth $513 million. Conversely, JSW Steel’s exit will result in outflows of $252 million. These portfolio adjustments are expected to occur in the last trading minutes on December 23, based on volume-weighted average prices.

A brief journey

Zomato’s rise began with its Rs 9,375 crore IPO in July 2021, debuting at Rs 72-76 per share. Since then, its innovative strategies and strong financials have propelled it to this landmark moment.

Zomato’s inclusion in the Sensex not only underscores its market dominance but also highlights the evolving landscape of tech-driven companies in India’s stock markets.