Zomato shares see biggest one-day gain in 2 months after as Q2 losses narrow

Market


Shares of Zomato Ltd today surged the most in two months after the food delivery firm reported a narrower loss for the second quarter. Zomato shared surged 13% to 72.25 at it intraday high. Zomato post market hours on Thursday reported narrowing of its consolidated net loss to 250.8 crore for the second quarter ended September 2022, as compared to 434.9 crore loss in the year-ago period. 

Adjusted core loss, excluding figures for its recently acquired quick-commerce business Blinkit, narrowed to 60 crore from 310 crore.

The transaction with Blinkit closed on August 10, 2022 and hence the financials for Blinkit have been consolidated from that date.

Revenue from operations increased to 1,661.3 crore during the July-September quarter, as against 1,024.2 crore in the corresponding period of the previous financial year, it said in a regulatory filing.

“We are building for the long term, and we are going to continue evaluating and taking bets which may compromise short term expectations for the long term,” Zomato founder Deepinder Goyal said.

In the broader internet stock space, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said there is high activity in some of these stocks where the lock-in period of initial investors is ending. 

“There is huge supply and high volatility in their stock prices. It is difficult to say what is the fair value for such stocks since many are loss-making and, therefore, the conventional parameters of valuations like EPS and PE ratio do not apply. Some of these stocks have a long runway of potential high growth over many years. Some of them may turn out to be big wealth creators in the long run. So this segment may be keenly watched,” he added. 

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