Zomato’s stock price displayed big changes over the last year because of shifts in the food delivery sector. In November 2024 Zomato’s business valued at $26.04 billion and each share traded for $2.87.
Zomato Share Price Movements
Throughout the year, Zomato’s stock has been influenced by several key factors:
- Quarterly Earnings Reports: When investors see quarterly earnings their market responses create share price volatility.
- User Growth and Market Expansion Announcements: Share prices rose because of good news about user growth and market expansion.
- Profitability Concerns: Analysts who talk about profit margins sometimes cause the stock price to drop.
Comparative Market Capitalization
In the global food delivery sector, Zomato’s market capitalization is positioned among leading companies:
- DoorDash: DoorDash tops other food delivery companies in market value at $72.47 billion as its stock trades at $174.48 per share.
- Grab Holdings: The company holds $18.12 billion in market capitalization while its shares sell for $4.50 each.
- Delivery Hero: The company currently values at 8.65 billion dollars and sells its shares for 29.94 dollars each.
- Just Eat Takeaway: The business has achieved a market cap worth $2.64 billion and trades at $12.65 per share.
Why is Zomato Share Price Falling Today? (January 21, 2025)
Multiple linked issues caused Zomato’s share price to reach its lowest level in six months today. Company-specific problems and industry market pressure combine to trigger investor worry. Our analysis shows Zomato’s stock trends along with identifying the main factors leading to its market drop.
Investors lost confidence in Zomato because of poor financial results and unclear business operations during the quarter.
Zomato's Share Price Performance on January 21, 2025
| Metric | Value |
|---|---|
| Opening Price | ₹240.00 |
| Intraday High | ₹242.50 |
| Intraday Low | ₹207.80 |
| Closing Price | ₹207.80 |
| Percentage Change | -13.33% |
Reasons for Zomato Share Price Drop
1. Weak Q3 FY25 Results
In Q3 FY25 Zomato experienced a sharp 57% drop in profits going from ₹138 crore last year to only ₹59 crore this year. This decline is attributed to:
Expenses rise because Zomato handles operational costs for its Blinkit quick-commerce business.
The new delivery systems that company spent money on did not start generating income yet.
The company’s profitability outlook faces challenges while it maintains a 25% gross margin yet extends spending.
2. Regulatory Scrutiny
CCI started an investigation of Zomato and Swiggy following claims that their methods of favoring particular restaurants could reduce the level of competition within their industry. The potential regulatory consequences have deterred investors through the uncertainty they create about future fines and operating limitations.3. Tax Liabilities
Zomato must pay 8.04 billion rupees in taxes and penalties after the government found reporting mistakes in the company’s filings from 2019 until 2022. The sudden tax debt created financial challenges for Zomato at the same time they pursued their Blinkit growth strategy.4. Broader Market Sentiment
The stock market as a whole has been affected by macroeconomic concerns, including:Global political conflicts and international trade policies create market instability.
Stock market pressure on global technology companies spreads to growth-oriented businesses such as Zomato.
Investor Insights
Key Technical Analysis Metrics
Indicator Value
50-Day Moving Avg ₹230.15
200-Day Moving Avg ₹225.30
RSI 28 (Oversold)
Comparison with Competitors
| Metric | Zomato | Swiggy (Private)* | DoorDash | Delivery Hero |
|---|---|---|---|---|
| Revenue (Q3 FY25) | ₹2,150 Cr | ₹2,200 Cr (est.) | ₹4,800 Cr | ₹3,900 Cr |
| EBITDA Margin | 8.4% | 6.5% | 12% | 9.8% |
| Net Profit (Loss) | ₹59 Cr | ₹(80 Cr)** | ₹380 Cr | ₹(120 Cr) |
| Market Valuation | ₹1.8 Lakh Cr | N/A | ₹4.2 Lakh Cr | ₹2.3 Lakh Cr |
(*Swiggy data is estimated due to its private ownership.)