Zomato VS ITC Stocks Performance Overview

Zomato and ITC are the two most prestigious companies listed on the Indian stock market. While Zomato is a food delivery company engaged in various other sectors like quick commerce and dining, ITC is a leading Indian conglomerate with businesses in tobacco, FMCG, and even hotels.

Both companies are known for their high market capitalization, future growth potential, and positive businesses thereby attracting investments from foreign, retail, and institutional investors. The following article explores the stock performance of both Zomato and ITC providing deep insights into their present stock scenario as well as future growth trajectory.

1. Zomato

Serving as a leading player in the food delivery and quick commercial sector in India, Zomato has slowly and steadily made a strong footing in the Indian stock market. The company offers various services like food delivery, dining out services, B2B grocery delivery, and quick commerce solutions. Listed on the stock market in the year 2021, the Zomato share price gained 65% against its offer price of ₹76. However, due to various regulatory concerns, low profitability, and competition from companies like Swiggy, the stock price plummeted quickly. With strategic investment in quick commerce Blinkit and a shift in the overall focus of generating profits and growth, the company and its share price have seen a quick turnaround in recent months. The stock price is near its all-time high of ₹298 with a stellar 5% increase in the last two trading sessions. Moreover, investors have been able to generate returns of more than 141% from investment in the Zomato stock.

2. ITC Ltd

A prominent player in the hospitality, tobacco, and FMCG sectors, ITC Limited is known for its various businesses, robust growth, and overall profitability. With a high market capitalization of more than 5.5 lakh crores, the company is one of the most profitable organizations attracting investments from both Indian as well as foreign investors. Low market volatility, high dividend payout, and stable returns or the key aspects that define the ITC share price. Trading at a price of ₹477, The ITC stock price has generated 8.91% returns for its investors in the past year. Separation of its hotel business, diversified revenue streams, robust growth in the FMCG sector, and a strong market footing make ITC Limited one of the best companies for long-term investment.

Key aspects related to Zomato and ITC Ltd stocks:

1. Volatility

Zomato's stock price is known for its great volatility due to low profitability and uncertainty about its future. On the other hand, ITC Ltd is known for its strong fundamentals and relatively a more stable stock price due to established businesses and customer base.

2. Long-term growth potential

Despite volatility in its stock price, Zomato is considered to be one of the most growth-oriented and high-potential companies that can deliver stellar returns to its investors in the long term. Moreover, its recent inclusion in the BSE Sensex is a testament to its strength. ITC Ltd offers stability and serves as a perfect investment for risk-averse investors who wish to protect their investments and earn dividends.

3. Business dynamics

Zomato and its share price are dependent on its ability to withstand its competitors and turn losses into profits in the long run. ITC Ltd is an established company with a relatively stable share price that can grow substantially through strategic investments in its business operations and disinvestments from its non-core businesses.

Conclusion

Zomato and ITC are known for their diverse business models and areas of operations. On one hand, Zomato can deliver substantial returns in the long run, and on the other ITC Ltd can deliver stability and capital protection. Investors can make a careful decision based on their risk profile and careful analysis of both fundamental and technical indicators of the companies.