Zomato Limited jumped 1.12% in morning trading 24/7 after the food delivery platform announced it had begun the process of liquidating its Portugal-based subsidiary.
Zomato Media Portugal is not a significant subsidiary and its liquidation will not affect Zomato Limited’s revenue or income, the food aggregator said in an after-hours filing on July 21. The company did not specify the reason for the liquidation of the subsidiary that did not have an active business.
As of 10:02 am, Zomato was trading at Rs 81.60 on the National Stock Exchange, up 1.62% from the previous close. So far, the market share has increased by 33% this year. As of January 1, Zomato has commenced procedures to liquidate five subsidiaries and delist one. Subsidiaries are based in Indonesia, New Zealand, Australia, Jordan and Portugal. He argued that the liquidation would not affect Zomato Limited’s income or business. Brokerage Motilal Oswal gives the stock a ‘buy’ rating with a target price of Rs 80. National brokerage saw the stock up 24%. “With outstanding market share and strong growth in the food delivery and Hyperpure businesses, we expect Zomato to post a solid compound annual growth rate of 36% between 2023-25,” Motilal Oswal said in a May 22 report.
Hyperpure is a kitchenware business platform for hotels, restaurants and food service. Zomato’s 2023 revenue increased 65% to Rs 7,760 crore. The food aggregator’s net loss fell 19% to Rs 971 crore in 2023 from a year earlier. Earnings before income tax amortization fell 2,212 basis points to 6.81% year-on-year.
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