Zomato, the leading food delivery platform led by Deepinder Goyal, has crossed a remarkable milestone by overtaking two prominent Indian automotive giants—Tata Motors and Bajaj Auto—in market capitalization. With its market cap now standing at Rs 2.83 lakh crore, the company has experienced a staggering 162% increase in value this year alone, surpassing Tata Motors, valued at Rs 2.79 lakh crore, and Bajaj Auto, which stands at Rs 2.5 lakh crore.
This surge in valuation comes just ahead of Zomato’s much-anticipated inclusion in the prestigious benchmark Sensex index on December 20. The company will replace JSW Steel, which currently holds a market cap of Rs 2.31 lakh crore. The Sensex, managed by the Bombay Stock Exchange (BSE), is composed of 30 large, financially sound companies that meet specific liquidity and market capitalization criteria. Being added to this influential index is a significant achievement, often leading to increased visibility and investor confidence, both domestically and internationally.
The inclusion of Zomato in the Sensex is expected to attract substantial capital inflows into the company. According to estimates by Nuvama Alternative & Quantitative Research, Zomato could see inflows worth around $513 million (approximately Rs 4,356 crore) as a result of this move. This is likely to further fuel investor enthusiasm and propel the company’s stock value upward.
Adding to the positive outlook, brokerage firm Morgan Stanley has projected a potential 75% rise in Zomato’s stock price over the next year, forecasting that it could climb to Rs 510 per share in a best-case scenario. This optimistic projection reflects growing confidence in Zomato’s growth trajectory, backed by its market leadership in the food delivery sector and its strategic positioning in the evolving Indian e-commerce landscape.
As Zomato continues to lead the charge in the Indian food delivery market, its market performance highlights the growing shift in investor sentiment, favoring high-growth sectors like technology and e-commerce, which are poised to shape the future of the Indian economy.
