Deepinder Goyal-led Zomato finally surpasses Tata Motors and Bajaj Auto in market cap

Deepinder Goyal-led food delivery giant Zomato has overtaken two established Indian automotive giants—Tata Motors and Bajaj Auto—in terms of market capitalization, marking a key moment in the company’s rapid growth this year.

Zomato’s market cap has surged to about Rs 2.83 lakh crore, a sharp 162% increase so far this year, pushing it past Tata Motors at Rs 2.79 lakh crore and Bajaj Auto at Rs 2.5 lakh crore.

The rise in valuation comes just before the Deepinder Goyal-led startup joins the benchmark Sensex on Dec. 20. Zomato will replace steelmaker JSW Steel, which currently has a market cap of Rs 2.31 lakh crore.

The Sensex, operated by the BSE, is made up of 30 large and well-known companies that meet certain criteria for financial soundness and liquidity. Firms are added and dropped from the index based on their average six-month float-adjusted market cap. Inclusion in the Sensex often draws attention from investors at home and abroad, as many use it as a benchmark for the Indian stock market.

In fact, the move to the Sensex is expected to bring inflows of about $513 million (approximately Rs 4,356 crore) into Zomato’s shares, according to Nuvama Alternative & Quantitative Research.

Adding to the upbeat sentiment, brokerage firm Morgan Stanley recently predicted that Zomato’s stock could rise by about 75% to Rs 510 apiece over the next year in a best-case scenario.