Zomato Shares Up 3% On Blinkit Infusion, Brokerage Optimism

Zomato Shares Up 3% On Blinkit Infusion, Brokerage Optimism Tezzbuzz | 25/02/2025 15:24:12

SUMMARY

Even at 11 AM, the stock remained up by 3.1% against its previous close of INR 222.60. At this price, Zomato’s market capitalisation stood at INR 2,21,572 Cr, with a trading volume of 1.8 Cr shares

Just a day ago, Zomato injected another INR 1,500 Cr into Blinkit, following an infusion of INR 500 Cr last month. Cumulatively, the company has invested INR 4,300 Cr in Blinkit since its acquisition

The stock’s rally also coincided with global brokerage firm Bernstein reiterating its optimism on Zomato, maintaining an ‘outperform’ rating with a target price of INR 310 per share

Shares of foodtech major Zomato surged as much as 3.16% to INR 229.65 during the early trading session on the BSE today (February 25).

Even at 11 AM, the stock remained up by 3.1% against its previous close of INR 222.60. At this price, Zomato’s market capitalisation stood at INR 2,21,572 Cr, with a trading volume of 1.8 Cr shares.

Just a day ago, Zomato injected another INR 1,500 Cr into Blinkit, following an infusion of INR 500 Cr last month. Cumulatively, the company has invested INR 4,300 Cr in Blinkit since its acquisition.

The stock’s rally also coincided with global brokerage firm Bernstein reiterating its optimism on Zomatomaintaining an ‘outperform’ rating with a target price of INR 310 per share.

According to Bernstein, Blinkit is expected to strengthen its dominant position in the quick commerce market despite intensifying competition. The sector is witnessing an aggressive land grab by Swiggy Instamart and Zepto, alongside the entry of new players.

According to Citi’s report on February 13, Blinkit leads the quick commerce sector with a market share at around 41% while its rival Swiggy’s market share is at 23%. Factors working for Blinkit include its early mover advantage and strong execution.

It is pertinent to note that the quick commerce segment in India is experiencing intense competition, with Zomato and its rivals like Swiggy Instamart and Zepto doubling down on infusion and expansion.

Blinkit aims to reach 2,000 dark stores by December 2025. Swiggy aims to reach 1,000 stores by March 2025, while Zepto targets 1,200 stores by the end of FY25

The stock’s rally today was further supported by broader Indian indices’ slight gains during early trading today, At 11:25 AM, BSE Sensex was trading at 74,605.01, up 0.2% while Nifty50 was at 22,558.00, up 0.02%.