Motilal Oswal Mutual Fund offloaded 4.5 crore equity shares in a bulk sale on Monday, putting shares of an online meal delivery company in the spotlight today. The bulk transaction includes the sale of 0.51 percent of the food delivery giant's paid up shares via open market transactions.
The shares were sold for an average of Rs 138.15 each. At the end of December 2023, Motilal Oswal Flexi Cap Fund owned 15.94 crore shares, or 1.83 percent of Zomato.
On the BSE today, Zomato shares were trading flat at Rs 134.45. Zomato's stock had previously opened higher at Rs 135.15. Zomato stock has grown 154% in a year and is expected to rise 7.83% in 2024.
On the BSE, 2.68 lakh shares of Zomato were traded, resulting in a turnover of Rs 3.62 crore. On Tuesday, the company's market capitalization increased to Rs 1.17 lakh billion.
In terms of technicals, Zomato's relative strength index (RSI) is 58.3, indicating that the company is neither overbought nor oversold. Zomato stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages.
The Zomato company has a share price objective of Rs 168 set by international brokerage CLSA.
In the consumer space, Zomato is its top pick. CLSA believes that with competitive pricing and the ease of 10-20 minute delivery, rapid commerce may be viable across cities in India, outside metros and tier-1 cities.
"With Blinkit achieving a positive contribution in Q2FY24, we believe added scale as they expand their dark store network and city reach will drive positive adjusted Ebitda in FY25," the brokerage said in a statement.
Zomato reported a net profit of Rs 36 crore in the September 2023 quarter, compared to a net loss of Rs 251 crore the previous year. Revenue in the second quarter increased 72% year on year to Rs 2,848 crore, up from Rs 1,661 crore in the September 2022 period.
Revenue increased 18% sequentially, while the operating deficit remained practically unchanged. Zomato declared a net profit of Rs 2 crore in the June quarter.
