Zomato Joins Sensex 30: A Milestone for the Food Delivery Giant


Zomato, a leading player in India’s food delivery and quick-commerce industry, is set to be included in the prestigious BSE Sensex 30 on December 23, 2024, replacing JSW Steel. This marks a historic milestone as Zomato becomes the first technology-based company to join the benchmark index.

This inclusion is expected to generate passive investment inflows of around $513 million (approximately ₹4,356 crore) as index funds realign their holdings to incorporate Zomato shares. Analysts view this as a strong affirmation of Zomato’s growing dominance in the market.

Zomato has become the first modern tech company to secure a spot in the benchmark index, replacing JSW Steel. According to a brokerage firm, the removal of the JSW Group entity is expected to result in outflows amounting to $252 million.

Also read on Mamata Machinery ipo details 

What Brokerage Firms Are Saying

Leading brokerage firms have expressed confidence in Zomato’s potential for sustained growth and profitability:

  • JPMorgan: Raised its valuation by 63% and set a target price of ₹340 by December 2025, citing the company’s excellent growth trajectory in both food delivery and quick-commerce operations.

  • Morgan Stanley: Updated its target price to ₹355, highlighting a 31.7% upside potential and projecting profitability gains through improved operational efficiency by 2030.

  • Jefferies: Maintained a "Buy" rating with a target of ₹335, citing Zomato’s robust market position and successful execution of strategic goals.

Performance Highlights

Zomato’s shares have seen impressive growth in 2024, rising approximately 135% year-to-date. Its market capitalization has also surpassed that of several large-cap companies. The stock’s recent momentum indicates strong investor interest ahead of its Sensex inclusion.

Final Thoughts

Zomato’s entry into the Sensex reflects its transformative impact on India’s food delivery sector. With significant passive inflows and optimistic brokerage recommendations, Zomato's stock presents a compelling investment narrative. However, investors are advised to weigh these developments against the inherent risks of market volatility before making decisions.

Disclaimer: The information above is for educational purposes and not investment advice. Please consult a financial advisor before investing.

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