Zomato Outlook: Shares of Zomato fell about 5 per cent in intra-day on BSE on August 24, falling to a price of Rs 120.60. A trading day earlier also, there was a fall of 9 percent in its price. Since the one-month lock-in period for anchor investors is over, its stocks have remained under pressure. According to analysts, its prices are falling due to the expiry of the lock-in period for anchor investors to hold its shares and problems in US operations. The lock-in period for anchor investors ended on Monday 23 August. Online food delivery platform Zomato has attracted a lot of investors with its unique business model and is the first listed online delivery company in the country.
This is the opinion of experts
- According to Rahul Sharma, co-founder of Equity99, its shares have fallen 15 per cent in the last two days due to profit booking, but this has not changed the fundamentals of the company. In such a situation, Rahul Sharma has advised long term investors to maintain a position with a stop loss of Rs 105. According to the co-founder of Equity99, the company is definitely making losses, but considering its growth in the future, its valuation is excellent.
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- Shares of Zomato are still up 6 per cent from their 52-week low, although it has fallen by 20 per cent from record highs. According to AR Ramachandran, co-founder and trainer of Tips2Trade, technically the stock of Zomato is looking weak on the chart and if it falls below Rs 120, it can slip to Rs 104 in the next few trading days.
- ICICI Securities in its recent report has called Zomato a value stock and has started its coverage. According to the domestic brokerage and research firm, the prices of Zomato can jump up to 70 percent from the current level.
- According to Aastha Jain, Senior Research Analyst, Hem Securities, a sell-off can be seen before making a base around Rs 110-150. Jain has advised long term investors to hold its shares. According to Jain, Zomato has steadily increased its market share in the food delivery space in terms of order value over the last four years and continues to see growth potential.
(Article: Surbhi Jain)
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