In this article, you’ll learn how to buy Zomato shares without paying any brokerage fees.
Zomato Limited was incorporated in 2008 and became one of the major online Food Service platforms. Zomato offers food delivery, dining-out services, and loyalty programs.
Zomato has established a strong presence in UAE apart from India.
Remarkable IPO Success
Zomato received an overwhelming response from investors and it managed to raise Rs. 9,375 Cr through the IPO in 2021, out of which 9000 Crs was a fresh issue and the remaining 375 Crs being an Offer for sale.
Zomato got successfully listed on the exchange on July 23, 2021, with a whopping 80% listing gain. The net proceeds from the IPO will be utilized for funding its organic and inorganic growth initiatives.
How to Buy Zomato Shares
- Open a demat & trading account – Select a broker with zero or low brokerage. Signup using your KYC documents like a Pan card, or Aadhar card.
- Deposit funds – Add funds into your trading account using the methods that suit you. It could be UPI, or Bank NEFT.
- Search Zomato – Type Zomato in the search bar. Click on Zomato from the dropdown list. Zomato will be added to your watchlist.
- Buy Zomato shares – Click on Zomato on the watchlist. Now click on the “Buy” button from the options available. Enter the no. of shares you wanna buy, Select “CNC” for stock delivery to your demat account. Clicking on “Buy” allows you to buy Zomato shares.
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7 Key Points about Zomato Company
#1. Leading Food-Service Platform
Zomato Ltd. is the leading Food Services Platform in India regarding the value of food sold.
Zomato is present in 500+ cities in India, with more than 390,000 Active Restaurant Listings. Zomato mobile app is the most downloaded app in the industry in the last 3 years both on Apple and Google Play stores.
#2. Business Sectors
|I. Food Delivery||Zomato had rapid growth in food delivery in India with its orders having grown by 13.2x from 30.6 mn to 403.1 mn during FY18-FY20. |
And it’s Gross Order Value (GOV) increased 8.4x from Rs.13,341.4 Mn to Rs. 112,209 Mn in FY18-FY20.
|II. Dining Out||Zomato monetizes its dining-out offering via advertisement sales which restaurant partners pay Zomato for better outreach through its platform. |
In FY20, 8,000 plus restaurants paid for Zomato’s advertising sales.
|III. Zomato Pro||Zomato Pro is an exclusive paid-membership program that provides discounts for its customers at select restaurant partners both on food delivery & dining-out offerings.|
|IV. Hyper Pure||Hyper pure is Zomato’s farm-to-fork supplies service for restaurants in India. |
Zomato sources fresh, hygienic, and quality products from farmers, producers, or processors.
The startup supplies goods to its restaurant partners to help them in making supply chains more effective.
#3. International Presence
Zomato is now operational in UAE only outside India. Zomato accumulated Rs 31 crore revenue from UAE operations in FY2021.
Zomato earlier used to operate in 23 countries outside India including UAE, Australia, New Zealand, Philippines, Indonesia, Malaysia, USA, Lebanon, Turkey, Czech, Slovakia, and Poland.
But these international services accounted for over 13% share of the overall loss in FY21, letting the food startup shut down the business in other countries.
#4. Latest Acquisitions
The company has made several acquisitions since 2021, and the major acquisitions are –
- Zomato took over Blinkit (formerly Grofers)
- 6.4% stake in Curefit Health Pvt Ltd for 100 Mn USD
- 16.66% stake in food robotics startup Mukunda for 5 Mn USD
- 19.8% stake in Adtech company AdOnMo for Rs. 112.20 Cr
- 5% stake in B2B software platform UrbanPiper Technologies for Rs. 37.38 Cr
#5. Business Growth Strategy
Zomato is expected to launch online grocery services on its app soon after its merger with e-grocer Blinkit (formerly Grofers).
Zomato Stock Price
Zomato stocks made a stellar start on July 14 last year, opening at a 53% premium over its IPO listing price and securing a market capitalization of Rs. 1 Lakh Cr.
Zomato share’s price rallied to an all-time high at Rs 169.10 in November 2021 but started falling till 1 August 2022. From 1 August 2022, it surged 35% again when the company showed the last quarter earnings showing a reduction in the net loss.
Zomato Fundamental Details
|Market Cap||Rs. 49,026 Cr|
|Price-to-Earnings (P/E) Ratio||0|
|Revenue (Q1 FY 2022-23)||Rs. 1,413.9 Cr.|
|Earnings Per Share (Q1 FY 2022-23)||-0.18|
|52-Week Range (High-Low)||169 – 40.6|
|1-Year Return||-55.9 %|
Zomato Stock Price History
Zomato’s journey so far is a topsy-turvy ride. Zomato was listed as a public company in 2021 when every investor welcomed the Zomato IPO with great euphoria.
But sooner the company started feeling the heat of market volatility. Zomato wiped out nearly half of investors’ wealth from January to April 2022. The food delivery giant’s stocks have crashed around 48% during this period.
The stock hit a 52-week high of Rs 169.10 on November 16, 2021, after that it started felling down and hit a 52-week low of Rs 40.55 on July 27, 2022.
What could be the key reasons for the fall? Let’s have a look.
#1. IPO Lock-in Period Expired
The major reason Zomato’s stock price dropped to all-time lows in July 2022, is the end of the lock-in period on pre-offer equity shares on July 23, 2022.
Approx. 613 Cr. shares were available for normal trading.
As per the SEBI’s rule, if a company doesn’t have promoters, the equity share capital held by the company before IPO is locked for a 1-year timeframe from the date of share allotment.
Shareholders can’t sell their shares during this period. This rule is applicable to avoid any volatility in the recently launched stock’s price.
#2. Financial Performance
Zomato is experiencing severe cash flow issues because its operational costs are significantly higher than its cash inflows.
The company’s net loss widened to Rs. 294 Cr in March 2022 from Rs 99 Cr in December 2021.
#3. Global Pressure
Indian tech-based stocks have been facing headwinds ever since Russian-Ukraine started and a major correction is seen in the US public markets. This is further compounded by the prospects of interest rate hikes by the Fed.
Tech stocks such as Google, Netflix, Amazon, and similar stocks are facing heavy sell-offs these days. Other Indian startup stocks have also seen a sharp correction in their prices.
- Paytm now trading around Rs 776, almost 64% lower than its issuing price.
- Nykaa is currently trading at Rs 1,372 and has fallen 42% from its all-time high price.
Why did Zomato Share Prices Start Rising Again
Zomato shares rose since August 1 when the firm announced its Q1 earnings. Zomato’s shares hiked 50% from its all-time low of Rs. 41.65 in August 2022 currently trading at Rs. 62 per share.
The market cap of the firm rose to Rs 54,095 crore on BSE.
Two major reasons Zomato share has started rising again –
- In the first quarter of the current fiscal, Zomato reported a reduced net loss of Rs 186 Cr against a Rs 356 Cr net loss in the last fiscal year.
- Zomato’s revenue from operations has also risen 67% to Rs 1,414 Cr in the June quarter against Rs 844 Cr in the previous year.
Zomato has come out as the most bought stock in July by mutual fund houses which is a positive sign for investors. Market analysts and financial research houses also expect Zomato’s better market performance in the near future.
Disclaimer –This article is for educational purposes only. It’s not a stock recommendation and should not be treated as stock advice.
#1. How does Zomato Earn Money
#2. When Zomato Started in India
Zomato was started in India in July 2008 as “FoodieBay” by two friends Deepinder Goyal and Pankaj Chaddah. They renamed it Zomato in 2010.
#3. How to Use Zomato Credits
You can use Zomato credits while paying for food on the payment page. To check out your Zomato credits follow the process below –
- Open the Zomato app
- Click on “Profile”
- Click on “Manage Payments” (Here you can find your Zomato credit balance at the bottom)
#4. Where is Zomato’s Head Office
Gurugram (or Gurgaon)
139 P, Sector 44, Gurgaon 122003, Haryana, India
#5. Zomato Toll-Free Number
Zomato does not have any customer care phone line. You can contact customer service through the app only.