On December 5, 2024, Zomato's shares soared to a new high of Rs 304.50, marking a 6% increase during intra-day trading and surpassing its previous peak of Rs 298.2 from September 24, 2024.

This impressive surge in stock price comes as Zomato's shares have risen 27% over the past month, significantly outperforming the S&P BSE Sensex, which only gained 1.5% during the same period.

As of late morning trading on December 5, Zomato's market capitalization approached Rs 3 trillion, reaching Rs 2.91 trillion, while the BSE Sensex saw a decline of 0.38% to 80,647.

The company recently announced a successful Qualified Institutional Placement (QIP) fundraise of Rs 8,500 crore ($1 billion), marking its first significant fundraising effort since going public in July 2021.

The funds raised through the QIP will bolster Zomato's balance sheet and support its expansion in the competitive food delivery and quick commerce sectors, including a substantial Rs 2,137 crore investment in enhancing Blinkit's network of dark stores and warehouses.

Following this fundraising, Zomato's cash balance is expected to increase from Rs 10,800 crore as of Q2 FY25 to Rs 19,300 crore.

Analysts attribute Zomato's strong market position to its effective execution across food delivery, quick commerce, and 'Go Out' sectors, positioning it as a leader in cash earnings and free cash flow among listed consumer Internet businesses.

JP Morgan has given Zomato an overweight rating, setting a target price of Rs 340 per share, citing profit and margin expansion in food delivery and robust growth in the Blinkit business, which has reached breakeven at both contribution margin and EBITDA levels.

Looking ahead, Axis Securities projects that Zomato will experience exponential growth from FY25 to FY26, estimating compound annual growth rates (CAGRs) of 25% for revenue, 60% for EBITDA, and 55% for adjusted profit after tax (APAT) from FY25E to FY28E.

Trading activity for Zomato stocks has also increased significantly, with trading volumes more than doubling, resulting in 65.47 million shares traded on the NSE and BSE combined.

As part of the QIP, Zomato issued 336.47 million shares at Rs 252.62 each, which is 21% higher than the current trading price.