Online food delivery company Somato has never turned a profit. The company’s September quarter results were released recently. Its 3-month loss is Rs.250 crore. It was Rs 186 crore in the June quarter last year and Rs 435 crore in the September quarter last year.
This year turned out to be a bad year for Somato due to inflation, macroeconomic impact from the Russia-Ukraine war. Its share price, which was Rs 141 in January, fell by around 70 per cent to Rs 40 till July. At that time, the one-year lock-in period for pre-market investors had ended.
Using it, Uber sold all its Somato shares. At the time, it had said that at the end of the June quarter, the revenue had increased and the loss had decreased significantly. As a result, the stock rose from Rs 41 to Rs 67 in a single month, i.e. more than 60 percent. Later found in swing.
In this case, Somato has recently announced its September quarter results. This year’s revenue has grown by 62.2 percent to Rs 1,661 crore compared to the September quarter of last year. The loss also came down to Rs.250 crore. Somato-acquired Blingit grocery delivery firm’s net order value rose 26% to Rs 1,482 crore. Its revenue rose 44%.
Buy shares now?
Satisfied with the results, investors bought stocks on Friday. This has increased by 13% and now the price per share is Rs.72.6. At the same time as far as Somato is concerned many follow the strategy of upselling. They wait, buy on the dip, sell on the high and exit. Due to this, the stocks have been in high volatility for the last 3 months.
Jefferies, an international investment research firm, has given Somato a buy recommendation. The target price has been set at Rs.100. Morgan Stanley brokerage firm has set a target price of Rs.80. Citi Investments has announced a target price of Rs.85. Credit Suisse has set a target price of Rs 100 for Someto, saying its growth is stable.
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