Zomato Shares Gain After New Intercity Service Launch, Large Trade

Shares of Zomato Ltd. gained the most in two weeks after the food delivery company launched a new service that allows users to order food from a different city.

Called 'Intercity Legends', the service allows users to order well-known dishes from restaurants located in other cities. "By leveraging Zomato's vast network of restaurant partners and delivery partners, deep understanding of food technology, and insights into what our customers love, legendary dishes will be delivered from across India to you, the very next day," it said in a press release.

The service has only been piloted for select customers in Gurgaon and parts of South Delhi. "We will rapidly scale this to other cities in the next few weeks. With over a 100 airports and a rich spread of the most iconic dishes that India has to offer, the sky is the limit to how big Intercity Legends can become," it said.

Separately, as many as 1.33 crore shares of the company changed hands in a large trade. Buyers and sellers weren't immediately known.

Shares of the company gained as much as 9.06%, the most since Aug. 16. The stock closed 8.3% higher on Thursday. Of the 23 analysts tracking the company, 19 maintain a ‘buy', and two each suggest a ‘hold' and a ‘sell', according to Bloomberg data. The 12-month consensus price target implies a 33.8% upside.