Zomato has secured a place in the Sensex during the rebalancing semi-annual, which closed on 20th December Friday. The inclusion of the giant food tech is likely to bring passive inflows of $513 million. Meanwhile, with the exit of JSW Steel, it might carry outflows of $252 million, says Nuvama Alternative & Quantitative Research.
This is a landmark moment for Zomato, which has witnessed an extraordinary uptrend in its market performance. In 2024, its stock returned an incredible 126%, well above the Sensex’s 10% gain. Within two years, Zomato’s stock price rose 350% to close at ₹281.85 on Friday. With a market capitalization of ₹2.71 lakh crore, Zomato now stands ahead of industry majors like Tata Motors, Adani Enterprises, and Asian Paints.
The company’s financial resurgence has fueled its remarkable rise. In Q2 FY25, Zomato reported a 389% jump in net profit to ₹176 crore. Revenue was up 68% year-over-year at ₹4,799 crore, and gross order value from B2C businesses rose 55% to ₹17,670 crore. The near-break-even performance of its quick commerce segment further strengthens its margins.
Zomato replaces JSW steel in Sensex
JSW Steel has, however, been rather anemic in its performance and has delivered a mere 5% this year. This is much slower growth than the tech disruptors like Zomato.
Zomato’s inclusion in the Sensex marks a larger economic shift in India. From an index dominated by steel and energy, the new index reflects innovation-led businesses. The 30 companies of the Sensex now contribute 13% to India’s GDP, which was only 10% in 2005, underlining their growing impact on the nation’s economy.
By including Zomato, the Sensex signals a bold move toward a tech-driven future, aligning with India’s evolving economic landscape.
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