Consumer tech companies are likely to lure back investors after Zomato posting net profit for the second consecutive quarter in FY24. The online food aggregator on Friday (November 3) posted a net profit of ₹36 crore, which is a sequential jump of 18-fold.

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What is more! Zomato also re-entered the elite club of companies with a minimum market capitalisation of ₹1 lakh crore as investors lapped up shares, following the robust set of numbers reported by the company. The stock of Zomato closed 8.3% higher at ₹116.50 on the NSE.

From Paytm to Policybazaar, as many as nine companies went public in a span of 15 months through May 2022. While Nykaa and Paytm debuted in November 2021, EaseMyTrip and Nazara Tech got listed in March of the same year. Not surprisingly, most of them had delivered decent listing day gains, except Paytm which closed 27.4% lower to its offer price of ₹2,150 per share. While shares of Nykaa almost got doubled on the day one, Zomato and Nazara Technologies surged 66% and 45%, respectively on listing.

Nevertheless, concerns over valuations and global economic slowdown had taken toll on most of them with shares of Paytm plummeting close to 80% from their highs. With others falling victims of the negative sentiments, the nine companies which debuted over 15 months had together seen a market cap erosion of ₹2.7 lakh crore form their respective listing day market valuations.

For instance, the market valuation of Zomato had surged to a whopping ₹1.3 lakh core with in four month of listing and then nosedived to ₹32,794 crore in July 2022. Besides, Zomato, Paytm and Nykaa also commanded over ₹1 lakh core market valuation at one point of time.

However, with companies refocusing on profitability by cutting extra costs, the combined market capitalisation of these nine companies saw double from their record lows, which stood at close to ₹3 lakh crore at Friday’s close.

(Edited by : Anand Singha)

First Published:Nov 3, 2023 9:27 PM IST