Introduction

In a significant development, Zomato introduced Nugget, an AI-powered, no-code customer support platform, marking a pivotal step for the company and its suite of services. This internal innovation, now open to businesses around the globe, underpins the company’s ambitions as it transitions into a broader market presence under a new name.

The Breakthrough: Nugget

CEO Deepinder Goyal explained that Nugget is designed to enable companies to scale their customer support without the need for costly development teams or rigid workflows. "Nugget helps businesses scale support effortlessly—highly customizable, low-cost, no dev team needed. No rigid workflows, just seamless automation," he stated in a recent post on X.

Key features of Nugget include:

• Seamless Automation: Streamlining customer support with minimal overhead.
• High Customizability: Adaptable to diverse business requirements without complex workflows.
• Global Accessibility: Initially developed as an internal tool, it now supports over 15 million interactions each month and is being offered to companies worldwide.

This product is the first of many innovations emerging from Zomato Labs, the company’s incubator dedicated to in-house technological advancements.

The Strategic Rebrand: Entering a New Era as Eternal Ltd

In parallel with the launch of Nugget, Zomato's board approved a resolution to rebrand the firm to Eternal Ltd. This new umbrella will consolidate its four primary business segments:

• Food Delivery: Remains branded as Zomato.
• Quick Commerce: Operated under Blinkit.
• Dining Out: Offered through District.
• B2B Grocery Supply: Continued as Hyperpure.

This strategic rebranding is aimed at reinforcing the company's diverse portfolio and its position in each market segment.

Market Response and Share Performance

Analyst opinions remain bullish amid these developments. According to Trendlyne data:

• The average target price for Zomato shares is Rs 292, suggesting a potential upside of 33% from current levels.
• Out of 28 analysts, the consensus recommendation is a "Buy".

Technical Indicators

Detailed technical analysis reveals:

• RSI: Currently at 41.8, indicating stable conditions (oversold if below 30, overbought if above 70).
• MACD: Positioned at -7.8, below the center line, which typically signals a bearish trend.
• Simple Moving Averages (SMAs): The stock is trading below its 10, 20, 30, 50, 100, 150, and 200-day SMAs.

Recent Share Performance

On the latest trading session, Zomato shares closed at Rs 218.5 on the BSE, showing a modest increase of 1.2% compared to the benchmark Sensex, which rose by 0.08%. Despite a 21% decline year-to-date, the stock has surged 321% over the past two years, with a current market capitalization of Rs 2,10,908 crore.

Conclusion

With the launch of Nugget and the transition to Eternal Ltd, the company is poised for a new phase of growth and innovation. These strategic moves are set to strengthen its competitive edge and appeal to a broader investor base, despite mixed technical signals in the short term.