3 hours Ago By Sai Aravindh
India's food delivery aggregator Zomato Ltd. is set to bring in an inflow of $513 million or approximately Rs 4,356 crore, as it gears up to replace JSW Steel Ltd. in the upcoming December Sensex rejig, according to Nuvama Alternative & Quantitative Research.
The replacement was announced in November by the oldest stock exchange, as it announced its periodic rebalancing of constituents. JSW Steel is set to witness an outflow of $252 million or roughly Rs 2,140 crore, Nuvama said in a note on Dec. 16.
The changes in the index will be effective on Dec. 20. Companies are added and excluded from Sensex based on their average six-month float-adjusted market capitalisation.
The index serves as both a benchmark and an investable index and is comprised of 30 large, well-established, and financially sound companies across key sectors. The market capitalisation of Zomato Ltd. has risen by 162% to Rs 2.
83 lakh crore this year, as its stock has rallied by 128%. Meanwhile, its rival Swiggy Ltd. has seen a stellar run post its debut on the exchanges.
The stock has surged by 30% since its listing last month. Meanwhile, Mahindra & Mahindra Ltd., ITC Ltd.
, Infosys Ltd. and Sun Pharmaceutical Industries Ltd. will see an outflow of $106 million or approximately Rs 900 crore as it sees their weight reduce.
Of the 26 analysts tracking Zomato, 24 have a 'buy' rating on the stock, and two have a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 3.2%.
.
