Food delivery giant Zomato Ltd has achieved a historic milestone by debuting on the Bombay Stock Exchange’s (BSE) benchmark Sensex index on Monday, December 23, 2024. Zomato is the first startup or newer company to join the Sensex, replacing steel giant JSW Steel Ltd in the index comprising India’s top 30 companies.
Impact of Sensex Inclusion
Zomato’s inclusion in the Sensex is projected to attract inflows worth $513 million (₹4,362.35 crore) and trigger outflows of $252 million (₹2,142.91 crore) from JSW Steel, according to estimates from brokerage firm Nuvama reported by Economic Times.
Zomato’s Performance Surge
Over the last six months, Zomato’s shares have rallied nearly 43%, while the company achieved an impressive 126% growth over the past year. This compares starkly with JSW Steel’s modest 9% annual gain.
The company’s market capitalization surged to ₹2.72 lakh crore, surpassing JSW Steel’s ₹2.24 lakh crore.
Driving Factors Behind the Growth
Brokerage firm UBS attributed Zomato’s stock rally of nearly 150% in the last 18 months to its focus on improving unit economics and moving towards breakeven, particularly in the quick commerce (qcom) segment.
Strong Financial Results
Zomato’s consolidated revenue from operations increased by 69% year-on-year to ₹4,799 crore in Q2 of FY2024-25. Net profit rose fivefold to ₹176 crore, signaling robust growth and investor confidence.
Conclusion
Zomato’s debut on the Sensex not only marks a significant moment for the company but also highlights the growing influence of startups in India’s financial ecosystem. The move sets a precedent for other innovative firms aspiring to achieve similar success in the capital markets.
