While the stock has given a return of 30.31% in the past one year, it has declined over 6% in the last month amid the downturn in the broader market
Zomato’s market capitalisation stood at INR 1.94 Lakh Cr and more than 6.6 Cr shares changed hands by 12:30 PM
On Monday, Zomato said that it has received approval from its shareholders to change its name to Eternal Limited
Shares of foodtech giant Zomato
slumped 5.4% to INR 199.75 during the intraday trading session on the BSE on Tuesday (March 11).
However, the stock made a slight recovery from there and was trading 4.8% lower at 12:30 PM from its previous close of INR 211.20 on the BSE. The company’s market capitalisation stood at INR 1.94 Lakh Cr and more than 6.6 Cr shares changed hands by then.
Amid the downturn in the broader market, shares of Zomato have been under pressure for the last few months. While the stock has given a return of 30.31% in the past one year, it has declined over 6% in the last month.
Further, if the stock maintains its losses until the close, it will mark the fifth consecutive session of decline.
On Monday, Zomato said that it has received approval from its shareholders to change its name to Eternal Limited. The shareholders passed a special resolution to approve the proposal to change the name of the company and consequent alteration in the Memorandum of Association and Articles of Association of the company.
In its rationale to change its corporate entity’s name, its cofounder and CEO Deepinder Goyal last month said Zomato started using ‘Eternal’ internally after acquiring Blinkit to distinguish between its corporate identity and the food delivery app.
“We also thought that we would publicly rename the company to Eternal, the day something beyond Zomato became a significant driver of our future. Today, with Blinkit, I feel we are there. We would like to rename Zomato Ltd., the company (not the brand/app), to Eternal Ltd,” Goyal added.
Amid the rising popularity of quick commerce platforms, Blinkit has seen exponential growth over the last year or so. However, the competition in the segment, dominated by Blinkit, Zepto, and Swiggy Instamart, has been intensifying with the entry of newer players like Amazon, Flipkart Minutes, among others, over the last few months.
This has weighed on shares of Zomato, as Blinkit’s adjusted EBITDA loss zoomed 13X to INR 103 Cr in Q3 FY25 from INR 8 Cr in the preceding September quarter.
Despite this, brokerage ICICI Securities, in a recent note, said it is bullish on Zomato and its rival Swiggy. It added that concerns about cash burn of the quick commerce verticals of the companies are exaggerated.
Meanwhile, shares of rival Swiggy were also trading 2.14% lower at INR 352.05 at 12:40 PM on the BSE.
Zomato closed the trading session on Tuesday (March 11) 1.52% lower at INR 208 on the BSE
