New Delhi: Online food delivery giant Zomato has surpassed Tata Motors and Bajaj Auto to become a larger company, with a market capitalization of ₹2.78 lakh crore. This remarkable achievement has earned Zomato a spot in the Sensex, effective from today, December 20, 2024.
On Thursday, December 19, 2024, after trading on the BSE, Tata Motors’ market cap stood at ₹2.73 lakh crore, while Bajaj Auto’s was ₹2.50 lakh crore. Following Zomato’s stellar performance, the company is set to replace JSW Steel in the top 30 shares of the Sensex, as announced by the BSE last month.
Zomato Delivers 130% Returns
In 2024, Zomato’s stock witnessed impressive growth. On December 20, 2023, a Zomato share was priced at ₹124, which has now surged to ₹286, delivering an astonishing 130% return to its investors.
Strong Financial Performance
Zomato’s financials are also strengthening. During the July-September 2024 quarter, the company reported a 388% increase in profits, with net profit reaching ₹176 crore compared to ₹36 crore in the same period last year. The company’s total revenue surged by 68.50%, reaching ₹4,799 crore from ₹2,848 crore a year earlier.
What is Market Cap?
Market capitalization, or market cap, represents the total market value of a company. It is calculated by multiplying the company’s total outstanding shares by its share price. This metric helps investors gauge the size of a company and categorizes them into large-cap, mid-cap, and small-cap segments.
Zomato’s Journey
Founded in 2008 by Deepinder Goyal and Pankaj Chaddah as a food directory website called Foodiebay, Zomato soon rebranded itself. After initial success in Delhi-NCR, Zomato expanded to other major Indian cities and began its global expansion in 2012.
Zomato became India’s first food-tech unicorn, valued at over $1 billion. Recently, the company acquired Blinkit to enter the grocery delivery segment.
Benefits of Joining Sensex
Zomato’s inclusion in the Sensex will enhance its reputation and increase its appeal among investors. Additionally, it will solidify the company’s position in the Indian stock market, further boosting its growth and influence.
