Zomato share price rallies 18%, mcap tops Rs 50,000-cr; Here’s what’s fueling the rally. buy, sell, hold? Zomato share price rallied over 18 per cent to Rs 67.60 apiece on BSE on Tuesday, a day after the company posted a 75 per cent jump in revenue in fourth quarter of FY22. The total market capitalisation of Zomato crossed Rs 50,000 crore-mark. The company, in a stock exchange filing, said that the average monthly transacting customers were at an all-time high of 15.7 million in Q4FY22, growing from 15.3 million in the December quarter. Likewise, the average monthly active restaurant partners and delivery partners were at all-time highs as well. From its high point of 169 to its most recent low of 50, Zomato had witnessed a very steep and ferocious decline which had made the stock deeply oversold, said a technical analyst. “We have witnessed a sharp technical pullback. However, speaking strictly from a technical perspective, investors should not jump in at this price as some consolidation is likely. Also, there is no confirmation of a bottom being in place. At the most, one can just invest a small portion and wait for the prices to settle down,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com. In traded volume terms, a total of 65.02 lakh shares exchanged hands on BSE, while 12.92 crore scrips traded on National Stock Exchange (NSE), so far in the day. AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com that despite widening losses in Q4FY22, an increasing customer base coupled with a technical bounce back from oversold levels has led to a sharp uptrend in Zomato today. “Technically, 60 now acts as a good support. Consistent daily close above 66 should lead to 74-78 in the coming days,” Ramachandran advised investors. The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.