In a remarkable turn of events, Zomato’s share price witnessed a 2.5 percent uptick on Tuesday, reaching an intraday high of Rs 104.30 on the NSE. This surge can be attributed to the optimistic outlook driven by the ICC Men’s World Cup 2023. With a year-to-date rally of over 70 percent, Zomato is inching closer to its 52-week high of Rs 105.
Karan Taurani, Senior Vice President – Research Analyst at Elara Capital, highlighted Zomato’s potential as the primary beneficiary of the World Cup in the post-Covid landscape. In an interview with CNBC-TV18, Taurani stated, “If you look at the market share numbers over the last 3-4 years, pizza has lost market share as a category within the overall QSR chain. It’s a win-win for burger, fried chicken for aggregators like Zomato, over the near to medium-term.”
ICC World Cup Boost
Taurani’s assessment points to a shift in dynamics. While during the 2011 and 2019 World Cups, Jubilant FoodWorks, the operator of Domino’s Pizza in India, enjoyed the spotlight due to its exceptional user experience in Delivery, this time around, Zomato could steal the show. Taurani explained, “We have seen adoption wherein delivery of food has moved to other categories and not just pizza. Zomato is able to replicate or even do better as compared to Jubilant in terms of the overall delivery experience.”
Increased Orders and Restaurant Partnerships
According to brokerage firm Motilal Oswal, Zomato, as an online food delivery platform, is poised to witness a surge in orders and forge more restaurant partnerships during the ICC World Cup, especially as home-viewing parties become a popular trend. Leveraging marketing campaigns and special offers, Zomato aims to attract a larger user base.
Zomato’s Technicals
Over the past year, Zomato’s stock has surged by an impressive 67 percent. Technical indicators show that the stock’s relative strength index (RSI) currently stands at 61.3, indicating that it is neither overbought nor oversold. Zomato exhibits high volatility, with a one-year Beta of 1.61. The stock is trading above its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages, according to Trendlyne data.
