There has been a drop of about 50 percent in Zomato from the record high. By the way, experts and brokerage houses are positive about the stock regarding the long term on the stock.
Zomato Stock Price: After the quarterly results, there is a big decline in the shares of Zomato today. In today’s business, there is a fall of 7 percent in Zomato and it has come at a price of Rs 87. It had closed at Rs 94 on Thursday. By the way, after seeing a better listing in the market and a great rally after listing, there has been continuous pressure on the stock. There has been a drop of about 50 percent in Zomato from the record high. By the way, even after the results, experts and brokerage houses are positive about the stock. If you look at their target on the stock, then investors can get 67 percent return from the current level.
Zomato has suffered a loss in the December quarter. However, the company has managed to reduce its losses. The company had a loss of Rs 63.2 crore during this period, while in the same quarter a year ago, the company was in a loss of Rs 352.6 crore. The company’s revenue has increased from Rs 609.4 crore to Rs 1112 crore on an annual basis.
Buying advice from lower levels
Anuj Gupta, Vice President – Research, IIFL Securities says that the stock of Zomato touched its all-time high of 169 in November 2021. Since then, continuous improvement is being seen in it. The big reason behind this is that the company’s results are coming weaker than expected. Because of this, investor confidence is not being built. After the results of the December quarter, the fall in the stock may increase further and it can also show the level of Rs 82 to Rs 80. If we look at the technical chart, then the stock has strong support between Rs 70 to Rs 75. If the stock comes to this level, then investors should buy from here. There may be a good rise in the stock going forward.
Veteran brokerage opinion
At the same time, after the quarterly results, the leading brokerage house has also advised to buy in the stock. While giving an overweight rating on the stock, Morgan Stanley has given a target of Rs 150. On the other hand, Credit Suisse has given a buy advice, but has reduced the target for the stock from Rs 185 to Rs 120. BofA Securities has also given buy advice in the stock with a target of Rs 115. The brokerage house says that the growth in MTU has been weak. Weakness has also been seen in GOV growth. With this, the stock will remain rangebound in the near term, though revenue growth is expected to remain strong going forward.
Stock halved from record high
The stock listing of Zomato took place on 23 July 2021. The issue price for the IPO was Rs 76, while it got listed at Rs 115. On the day of listing, it closed at Rs 126 with a premium of 66 per cent. After listing, the stock reached a record high of Rs 169 in November 2021. However, since then there has been a correction in it and it has now become cheaper by the price of Rs 87.
(Disclaimer: Investment advice in stocks is given by brokerage house or experts. These are not the personal views of Financial Express. Markets are risky, so take expert opinion before investing.)
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