Zomato shares rose more than 18% in early trade on Tuesday after the business reported results for the March 2022 quarter.

For the quarter ending March 2022, the company posted a net loss of Rs 359 crore, almost double the loss of Rs 134 crore posted in the same time the previous year.

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Conversely, in the fourth quarter of 2021-22, the company’s consolidated revenue from operations increased by 75% year on year to Rs 1,212 crore, up from Rs 692 crore the previous year.

After the increase in revenue, Zomato’s stock rose 18.6% to Rs 67.6 on Tuesday. On Monday, the stock closed at Rs 57. The stock had its greatest intra-day gain since its initial public offering.

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Because of the outstanding intraday surge in the counter, the new-age digital platform’s market value has now reached Rs 50,000 crore after a long time.

According to a regulatory filing, Zomato’s adjusted EBITDA loss decreased to Rs 220 crore (-15% of adjusted sales) in Q4 FY22 from Rs 270 crore (-19% of adjusted revenue) in Q3 FY22.

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Zomato shares were still 15% below their offering price of Rs 76 when they were listed in July 2021. Furthermore, the counter has fallen around 66% from its all-time high of Rs 169.10.

Morgan Stanley maintains an ‘overweight’ rating on the company, with a target price of Rs 135 per share.

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The fourth-quarter results were consistent with increased transparency in segment disclosures. The corporation provided a more optimistic prognosis for the first quarter and a more stringent framework for capital allocation.

According to CNBC-TV18, the firm is on the right track but requires constant execution to achieve high expectations.