Christopher Wood, the global head of equity strategy at Jefferies, is reportedly planning to increase his investment in the Indian foodtech giant Zomato by an additional percentage point. This move comes a month after Wood included Zomato in his portfolios and signals his growing confidence in the company’s prospects. According to reports, Wood will make this investment by reducing his stake in the state-run petro giant ONGC.

Wood’s investment firm, Greed & Fear, initially allocated a 4% weightage to Zomato in its India long-only portfolio back in May. This investment was made at the expense of HDFC Life, which was subsequently removed from the portfolio. The interest in Zomato’s shares coincides with the recent rally in the foodtech company’s stock. While the shares opened slightly below their IPO price of INR 76 on Friday, they have since surpassed it and reached a 52-week high of INR 80.30. Since June 2022, Zomato’s shares have surged more than 39%, attracting optimism from brokerage firms.

Analysts at Kotak Institutional Equities have lauded Zomato’s strong execution and customer stickiness, noting a favorable market share split of 55-45 in its favor over competitor Swiggy. Citi, meanwhile, highlighted Zomato’s favorable position on the profitability curve. Both brokerage firms have maintained a ‘Buy’ recommendation on Zomato, with price targets of INR 84 and INR 95 respectively.

The restaurant industry also recognizes the importance of food delivery aggregators like Zomato and Swiggy. A recent report from JM Financial emphasized the indispensable role played by these aggregators, attributing approximately one-third of restaurant revenue to food delivery. With no significant competition on the horizon, Zomato and Swiggy are becoming increasingly vital to the ecosystem, according to the report.

Zomato continues to enhance its services and recently introduced a multi-restaurant cart feature, allowing users to add items from multiple restaurants at once. The company reported a 48% year-on-year reduction in net losses for the fourth quarter of FY23, demonstrating progress towards profitability. Zomato further stated that its business was adjusted EBITDA positive, excluding its quick-commerce vertical Blinkit.

Christopher Wood, the global head of equity strategy at Jefferies, is reportedly planning to increase his investment in the Indian foodtech giant Zomato by an additional percentage point. This move comes a month after Wood included Zomato in his portfolios and signals his growing confidence in the company’s prospects. According to reports, Wood will make this investment by reducing his stake in the state-run petro giant ONGC.

Wood’s investment firm, Greed & Fear, initially allocated a 4% weightage to Zomato in its India long-only portfolio back in May. This investment was made at the expense of HDFC Life, which was subsequently removed from the portfolio. The interest in Zomato’s shares coincides with the recent rally in the foodtech company’s stock. While the shares opened slightly below their IPO price of INR 76 on Friday, they have since surpassed it and reached a 52-week high of INR 80.30. Since June 2022, Zomato’s shares have surged more than 39%, attracting optimism from brokerage firms.

Analysts at Kotak Institutional Equities have lauded Zomato’s strong execution and customer stickiness, noting a favorable market share split of 55-45 in its favor over competitor Swiggy. Citi, meanwhile, highlighted Zomato’s favorable position on the profitability curve. Both brokerage firms have maintained a ‘Buy’ recommendation on Zomato, with price targets of INR 84 and INR 95 respectively.

The restaurant industry also recognizes the importance of food delivery aggregators like Zomato and Swiggy. A recent report from JM Financial emphasized the indispensable role played by these aggregators, attributing approximately one-third of restaurant revenue to food delivery. With no significant competition on the horizon, Zomato and Swiggy are becoming increasingly vital to the ecosystem, according to the report.

Zomato continues to enhance its services and recently introduced a multi-restaurant cart feature, allowing users to add items from multiple restaurants at once. The company reported a 48% year-on-year reduction in net losses for the fourth quarter of FY23, demonstrating progress towards profitability. Zomato further stated that its business was adjusted EBITDA positive, excluding its quick-commerce vertical Blinkit.