Zomato, Swiggy shares in focus post income tax relief in Budget 2025. What’s the road ahead for the new-age stocks? | Stock Market News
Source: Live Mint
Budget 2025: Shares of Zomato and Swiggy increased by 9-10% following Finance Minister Nirmala Sitharaman’s declaration of an income tax exemption for individuals with an annual income of up to ₹12 lakh in the Union Budget 2025. Experts think this initiative may stimulate spending in light of indications of waning urban demand.
Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund, explained that the Finance Minister has made a significant move to boost consumption by implementing new tax rates. With more disposable income, consumers now have the choice to either spend or save. As a result, companies in the Fast-Moving Consumer Goods (FMCG) sector are likely to benefit overall, and services like Swiggy and Zomato can be viewed as modern FMCG stocks.
“My only concern is that if middle-income earners choose to speculate in the markets rather than consume, this entire effort may end up being futile. Overall, the government has fulfilled its role; now, it’s up to the beneficiaries to decide how to act. Will today’s announcement lead to sudden and significant growth for Swiggy and Zomato? The answer is likely not! This is a longer-term play for sure,” said Gulati.
Further, Avinash Gorakshakar, who leads Research at Profitmart Securities, pointed out that FMCG and quick-service restaurant (QSR) companies are likely to gain from the latest tax-saving measures introduced by the government. However, the full impact of these initiatives will gradually become evident starting from the first quarter of next year.
Zomato share price today opened at ₹220.95 apiece on the BSE, the stock touched an intraday high of ₹240.25, and an intraday low of ₹215.60 per share. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One stated that post recent correction in the last couple of week, the counter has regained positive momentum this week gaining around 10% and on the budget day gaining over 7%. Formation of Bullish pricing line on weekly chart is very supportive expecting further positive move towards ₹255 in near term . ₹220 would be immediate support.
Swiggy share price today opened at ₹420.40 apiece on the BSE, the stock touched an intraday high of ₹458.35 per share, and an intraday low of ₹407.25 apiece.
Q3 Results
Zomato experienced a 57.2% decline in consolidated net profit for the December quarter, amounting to ₹59 crore, as its margins were impacted by aggressive store expansion to fulfill orders for its quick-commerce service Blinkit. In the same period last year, the company reported a net profit of ₹138 crore. The consolidated revenue from operations for the company reached ₹5,405 crore, compared to ₹3,288 crore in the December quarter of the previous fiscal year.
Swiggy, which went public on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on November 13, 2024, is scheduled to announce its Q3FY25 results on Wednesday, February 05, according to the company’s filing with the exchange.
The revenue of the company grew at a compound annual growth rate (CAGR) of 40% over a span of three years, reaching ₹11,247 crore. The net losses reduced from ₹3,629 crore in FY22 to ₹2,350 crore in FY24.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
