Tue Jan 21 10:37:59 UTC 2025: ## Zomato Shares Plunge Over 11% After Disappointing Quarterly Results
**MUMBAI, INDIA** – Zomato shares experienced a sharp decline on Tuesday, falling over 11% to ₹210.15, following the release of weaker-than-expected December 2024 quarter results. The drop follows a similar downturn on Monday. The company’s consolidated net profit plummeted 57% year-on-year to ₹59 crore (approximately $7.1 million USD), compared to ₹138 crore in the same period last year. While revenue saw a substantial 64% increase to ₹5405 crore (approximately $650 million USD), the significant profit decrease has spooked investors. On a sequential basis, profit fell by 66%.
The poor performance prompted several brokerage houses to revise their target prices for Zomato stock. Macquarie maintained an “underperform” rating and lowered its target price to ₹130 (approximately $15.6 USD), citing concerns about Blinkit’s potentially long-term negative margins. Jefferies downgraded its target price from ₹275 to ₹255 while maintaining a “hold” rating. However, not all analysts are bearish. Nomura retained a “buy” rating with a ₹290 target price, and Bernstein gave an “outperform” rating with a ₹310 target price.
The significant drop in Zomato’s share price underscores investor concerns about the company’s profitability despite strong revenue growth. The market reaction highlights the sensitivity of investor sentiment to financial performance, particularly in the volatile food delivery sector.
First Piper 