Zomato Shares Surge as it Joins BSE Sensex Index

Zomato’s share price will attract attention when the stock market opens. The food delivery giant has seen its stock surge over 43% in the past six months, significantly outperforming the flat performance of the benchmark Sensex. Year-to-date, Zomato shares have delivered multibagger returns of over 126% and skyrocketed by 350% over the past two years.

Zomato will join the prestigious 30-share BSE Sensex index, becoming the first new-age tech stock to do so. This change will take effect on December 23, with Zomato replacing JSW Steel. Nuvama Alternative & Quantitative Research predicts that Zomato’s inclusion in the Sensex will attract passive inflows of approximately $513 million, while JSW Steel’s exclusion will lead to outflows worth $252 million.

Robust financial results have driven Zomato’s impressive performance this year. The company reported a 389% growth in its consolidated net profit for the second quarter of FY25, reaching Rs 176 crore. A steady increase in food delivery margins and near break-even quick commerce business fueled this growth. Zomato’s revenue from operations in Q2FY25 rose 68% year-on-year to Rs 4,799 crore, and the adjusted EBITDA increased to Rs 331 crore from Rs 41 crore in the corresponding period last year.

Zomato’s market capitalization has surpassed some top companies, including Tata Motors, Adani Enterprises, Asian Paints, Coal India, and Bajaj Auto. The company’s valuation now stands at Rs 2,71,995 crore.

Zomato’s inclusion in the Sensex not only reflects its market leadership but also highlights the growing prominence of tech-driven companies in the Indian stock market. Investors will closely watch Zomato’s share price as the market opens to see how it reacts to this significant development.