Zomato Zooms Past Tata Motors In Market Cap Ahead Of Sensex Inclusion

Zomato's market cap now exceeds Tata Motors and Bajaj Auto, positioning it as a leader in its sector before its Sensex debut. The inclusion is expected to bring in an inflow of $513 million. (File photo of Zomato's delivery woman, rider waiting on street to pick up order. Photo source: Vijay Sartape/NDTV Profit)

Food delivery aggregator Zomato Ltd. has surpassed automobile major Tata Motors Ltd. in terms of market capitalisation, ahead of its inclusion in the Sensex, the main index of the BSE.

Zomato's market cap has peaked 162% year-to-date to Rs 2.83 lakh crore, thereby surpassing Tata Motors' market cap of Rs 2.79 lakh crore. The Deepinder Goyal-led platform firm has also surged ahead of the market cap of Bajaj Auto, which stands at Rs 2.5 lakh crore.

With effect from Dec. 20, Zomato will be replacing JSW Steel Ltd. in the Sensex. The decision to swap Zomato with the traditional steelmaker, which has a market cap of Rs 2.31 lakh crore, was announced by the oldest Asian stock exchange last month.

Companies are added and excluded from the Sensex based on their average six-month float-adjusted market cap. The frontline index serves as both a benchmark and an investable index and is comprised of 30 large, well-established, and financially sound companies across key sectors.

Zomato is set to bring in an inflow of $513 million, or approximately Rs 4,356 crore, as it gears up to replace JSW Steel, according to Nuvama Alternative & Quantitative Research.

Zomato, whose stock has rallied over 136% year-to-date, has attracted bullish views from brokerages. Morgan Stanley, in a note released last week, said it expects the food delivery firm to soar by around 75% to Rs 510 apiece over the next year in a bull case scenario.

Morgan Stanley also sounded bullish on Blinkit, the quick commerce arm of Zomato, even as it pointed towards the rising competition in the sector. "Superior unit economics, a stronger balance sheet, and strong positioning within consumers should keep Blinkit's market share above 40%," the broking said.

Shares of Zomato were trading 1.67% lower at Rs 291.85 apiece on the NSE, compared to a 0.65% decline in the benchmark Nifty 50, at 2:42 p.m. The stock has climbed by 127% over the past 12 months.

Among the 26 analysts tracking the stock, 24 have a 'buy' rating and only two recommend a 'sell'. The average of 12-month analysts' price target implies a potential upside of 3.7%.