Posted on March 11, 2025, by Niftynews
Zomato Shares have experienced a sharp decline, falling more than 5% on March 11, 2025, to drop below the INR 200 mark. This slump comes as the broader market is under pressure, and Zomato faces intense competition in the quick commerce space.
Why Zomato Shares Are Facing a Significant Decline
Zomato stock price fell 5.4% to INR 199.75 during the intraday trading session on the BSE on Tuesday. The stock recovered slightly but remained 4.8% lower by 12:30 PM, compared to its previous close of INR 211.20. This sharp drop has raised concerns for investors about the long-term performance of Zomato shares.
Despite a return of 30.31% over the past year, Zomato has seen a decline of over 6% in the last month due to the overall downturn in the market. If the stock continues its downward trend, it will mark the fifth consecutive session of losses.
Zomato’s Name Change to Eternal Limited: A Strategic Shift
Zomato has announced a significant change in its corporate identity by renaming the company Eternal Limited. This decision comes after receiving approval from its shareholders on March 10, 2025. The rebranding aims to better reflect the company’s expanding business, especially after its acquisition of Blinkit.
Co-founder and CEO Deepinder Goyal explained that the name change was essential to distinguish Zomato’s corporate identity from the food delivery app. As Blinkit’s business grows, the need for a separate corporate identity became evident, and Eternal Limited was chosen as the new name.
Competition in Quick Commerce: Impact on Zomato Shares
The rise of quick commerce platforms, especially Blinkit, has significantly impacted Zomato shares. Blinkit has seen exponential growth in the past year, but it now faces fierce competition from companies like Zepto, Swiggy Instamart, Amazon, and Flipkart Minutes.
Zomato’s quick commerce division, Blinkit, has experienced an increase in its adjusted EBITDA loss, rising 13X to INR 103 crore in Q3 FY25, compared to INR 8 crore in the previous quarter. This increase in loss has put pressure on Zomato’s overall financial health, which has reflected in its share price drop.
Will Zomato Recover from the Quick Commerce Challenges?
Despite Blinkit financial challenges, ICICI Securities remains optimistic about Zomato future in quick commerce. The brokerage firm has expressed confidence in the company’s ability to manage its cash burn and remain competitive in the growing sector.
As Zomato navigates through these challenges, investors are closely monitoring the company’s ability to bounce back and adjust its strategy to remain competitive in the quick commerce space.
Comparing Zomato and Swiggy Shares in the Current Market
While Zomato shares have faced significant losses, its competitor Swiggy has also seen a downturn. Swiggy’s shares dropped 2.14% on March 11, 2025, trading at INR 352.05. Both companies are under pressure due to the increased competition in the quick commerce and food delivery space.
However, analysts remain hopeful that both Zomato and Swiggy will adapt and adjust their strategies to navigate through the market’s challenges.
The Road Ahead for Zomato Shares: What Investors Can Expect
Looking ahead, the future of Zomato shares is uncertain as the company continues to face significant competition in the quick commerce sector. The rebranding to Eternal Limited and the company efforts to adapt to the changing market dynamics will play a crucial role in its future performance. Investors will need to keep an eye on Zomato strategy, Blinkit’s financial recovery, and overall market conditions.
While the current market challenges weigh on Zomato stock, there is still potential for growth if the company can weather the storm and adjust to the evolving industry trends.
