Deepinder Goyal Becomes Billionaire as Zomato's Stock Soars 83% in 2024

Deepanshu Jain

    15/Jul/2024

Key Points:

Zomato's share price surged over 4% to hit a 52-week high, driven by a platform fee hike.

The company's market capitalization reached ₹2 trillion, with shares rising 83% in 2024.

Deepinder Goyal, Zomato's founder, has become a billionaire amid this financial rally.

Zomato's Meteoric Rise in 2024: Deepinder Goyal Becomes Billionaire

Zomato, one of India's leading food delivery aggregators, has witnessed a remarkable surge in its stock price in 2024, leading to a significant milestone for the company and its founder, Deepinder Goyal. The stock's impressive performance has propelled Goyal into the billionaire's club, marking a pivotal moment for the company and its stakeholders.

Zomato's Stock Performance and Market Cap Milestone

On Monday, Zomato's share price surged over 4% to touch a 52-week high after the company announced an increase in its platform fee from ₹5 to ₹6. This strategic move is expected to enhance the company's profitability, particularly in key markets like Bengaluru and Delhi. The stock opened at an intraday low of ₹225 apiece on the BSE and reached an intraday high of ₹232 apiece, demonstrating strong investor confidence.

In 2024, Zomato's share price has soared by nearly 83%, reflecting a robust growth trajectory. The company's market capitalization crossed the ₹2 trillion mark, a significant achievement that underscores its growing influence in the food delivery sector. This surge in share price and market cap has elevated Deepinder Goyal's net worth, officially making him a billionaire.

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Technical Analysis and Expert Insights

According to Ruchit Jain, Lead Research Analyst at 5paisa, Zomato's share price has formed a Higher Top Higher Bottom structure, indicating an uptrend. The 20-day Exponential Moving Average (DEMA) at ₹206 serves as a near-term support level, while resistance is anticipated around the ₹245-₹250 zone. Data from Trendlyne shows that over the last year, Zomato's stock price has increased by 173.8%, significantly outpacing its sector by 129.31%.

Kushal Gandhi, Technical Analyst at StoxBox, highlighted that Zomato's share price has surged by over 450% since its all-time low in July 2022. Following a bullish breakout from its previous all-time high of ₹169, the stock entered a brief accumulation phase, suggesting potential for further bullish momentum. With improving Earnings Per Share (EPS), high relative price strength, and strong buyer demand, analysts recommend buying Zomato with a target price of ₹265 and a stop loss of ₹211.

Strategic Moves and Financial Performance

Zomato's recent decision to increase its platform fee is part of a broader strategy to boost profitability. This follows an earlier fee hike from ₹4 to ₹5 per order in April 2024. These adjustments are expected to positively impact the company's financial performance, particularly in high-demand regions.

The company's strong performance in several key areas has driven its revenue growth. In Q4FY24, Zomato's revenue increased by 73.3% year-on-year to ₹3,562 crore. The introduction of platform fees, higher average order values, increased topline, and effective cost control measures contributed to an EBITDA of ₹86 crore.

Brokerage and Market Analysis

Geojit Financial Services has reiterated its BUY recommendation on Zomato, citing significant growth potential in the company's rapid commerce and meal delivery segments. The brokerage firm highlights Zomato's expanding customer base, increasing order frequency, growing network of delivery partners, and operational leverage as key drivers of its bright prospects.

After the release of its Q4 earnings, Zomato has successfully scaled its operations, driven by growth across all segments and improved profitability. The company anticipates strong performance in its food delivery business, driven by scale improvements, a growing customer base, increased order frequency, and operational efficiency. The quick commerce business is also expected to thrive with the addition of new stores and rising customer demand.

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Conclusion

Zomato's stellar performance in 2024 has not only boosted its market capitalization but also transformed Deepinder Goyal into a billionaire. The company's strategic initiatives, robust financial performance, and strong market presence position it for continued success in the highly competitive food delivery sector. As Zomato continues to innovate and expand, investors and stakeholders can look forward to sustained growth and profitability.

For more in-depth analysis and updates on Zomato's stock performance, stay tuned to official reports and expert insights.

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