Zomato shares surged 7% to hit a day’s high of Rs 282.85 on the BSE on Monday, following news that the food delivery company will join the prestigious BSE Sensex. Zomato is set to replace JSW Steel in the 30-stock benchmark index as part of the upcoming reconstitution, effective December 23.
On Friday, Asia Index Private Ltd, a wholly-owned subsidiary of BSE, announced the reconstitution of multiple indices, including the BSE Sensex, BSE 100, BSE Sensex 50, and BSE Sensex Next 50. The changes, effective December 23, reflect adjustments to accommodate emerging market leaders like Zomato.
What made Zomato enter into BSE Sensex
Zomato’s inclusion in the Sensex comes after a phenomenal year for the company, with its stock delivering 130% returns over the past 12 months.
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This significantly outperformed the Sensex, which delivered 20% returns during the same period. Meanwhile, JSW Steel, the outgoing Sensex constituent, saw a 27% return over the past year.
Additional Changes in BSE indices
BSE also announced changes to other indices, including the BSE 100, where several major reshuffles will take place.
– Additions: Jio Financial Services, Suzlon Energy, Adani Green Energy, Adani Power, Samvardhana Motherson, and PB Fintech will be added to the BSE 100 index.
– Exclusions: Stocks such as Ashok Leyland, PI Industries, IDFC First Bank, IRCTC, UPL, and APL Apollo Tubes will be dropped from the index.
Zomato’s Financial Performance
Zomato’s robust financial performance has bolstered investor confidence. In the July-September quarter (Q2 FY24), the company reported a staggering 389% growth in its consolidated net profit, which stood at Rs 176 crore compared to Rs 36 crore in the same period last year.
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The company’s revenue from operations surged by 69% year-on-year (YoY) to Rs 4,799 crore in Q2,
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