Zomato Stock Rise: Zomato shares surged 7% on Monday, reaching a day’s high of Rs 282.85, driven by the announcement of its inclusion in the prestigious BSE Sensex. This milestone not only cements Zomato’s position as a market leader but also highlights its potential for long-term growth. Experts predict a breakout above Rs 300, which could propel the stock towards Rs 450, offering significant gains for investors.

The inclusion, effective December 23, 2024, comes after Zomato delivered an impressive 130% return over the past year, far outpacing the Sensex’s 20% return during the same period. This strong performance and bullish technical setup have placed Zomato in the spotlight for traders and long-term investors alike.

Why Zomato is Gaining Momentum

1. Sensex Inclusion

Zomato will replace JSW Steel in the BSE Sensex, a move announced as part of the index’s periodic reconstitution. This inclusion highlights Zomato’s emergence as a significant player in India’s stock market, attracting institutional and retail investors alike.

2. Strong Financial Performance

Zomato’s Q2 FY24 results showcased its growth trajectory:

• Net Profit: A 389% YoY increase to Rs 176 crore from Rs 36 crore last year.
• Revenue Growth: A 69% YoY rise to Rs 4,799 crore, up from Rs 2,848 crore.
• Operational Efficiency: Sequential revenue growth from Rs 4,206 crore in Q1 FY24 indicates sustained momentum.

This robust performance has reinforced investor confidence in Zomato’s ability to scale and expand its market share.

3. Market Outperformance

Over the past year, Zomato has delivered 130% returns, outshining major indices and peers. This exceptional growth reflects its ability to adapt and thrive in a competitive environment.

Technical Outlook: Rs 300 as the Next Big Milestone

Zomato’s stock has been consolidating within a bullish flat base pattern for 17 weeks, setting the stage for a breakout. Anshul Jain, Head of Research at Lakshmishree Investments, remarked, "Zomato is poised for a breakout above Rs 300, which could act as a launchpad for a rally towards Rs 450."

Key Technical Levels:

• Resistance: Rs 300 is a critical barrier.
• Target: A breakout could drive the stock to Rs 450.
• Support: The consolidation phase provides a stable base for further growth.

Changes in BSE Indices: Zomato Leads the Pack

Zomato’s inclusion in the Sensex is part of a larger reshuffling announced by Asia Index Private Ltd. Notable changes include:

• Additions to BSE 100 Index: Companies like Jio Financial Services, Adani Green Energy, and PB Fintech.
• Exclusions: Stocks such as Ashok Leyland, PI Industries, and IRCTC.

This shift underscores the growing influence of emerging leaders like Zomato in India’s equity markets.

JSW Steel's Exit: What It Means

As Zomato enters the Sensex, JSW Steel exits after delivering 27% returns over the past year. While still a key player in the materials sector, its exclusion reflects the increasing prominence of technology-driven and consumer-oriented companies.

What Experts Recommend

Experts suggest Zomato’s technical and fundamental strengths make it a top pick for investors:

1. Short-Term Traders: Watch for a breakout above Rs 300 as a signal for upward momentum.
2. Long-Term Investors: Zomato’s strong fundamentals and market position offer significant growth potential.

Also Read: Nifty Surges Over 400 Points, Sensex Reclaims 80K: Top 10 Stocks to Buy Today - Read Now