Investors who had not invested in Zomato’s IPO, now have an opportunity to invest again at the issue price.
Today flat trading is being seen in the shares of Zomato. The stock is trading with a slight decline around Rs 76. Zomato had kept the upper price band of Rs 76 only under the IPO. That is, the company’s stock has come back to the issue price, staying less than half of its record high. Investors who had not invested in the company’s IPO, now have an opportunity to invest again at the issue price. Experts and brokerage houses are predicting a further rise in the stock. If you look at the target of different experts or brokerages, then it is possible to return up to 77 percent from the current price.
Big fall in stock from record high
The stock of Zomato has broken 55 percent from its record high. The stock touched a level of Rs 169 on 16 November 2021, which is an all-time high. Right now the share has come at a price of Rs 76. That is, it has fallen 55 percent from the record high. This year i.e. since January 1, the stock has fallen by 46 percent. At the same time, it has weakened by 11 percent in 1 month. The company’s stock was listed in the market on 23 July 2021. The share price for the IPO was Rs 76, while it was listed at Rs 115.
Investment Opportunity at IPO Price
IIFL VP-Research Anuj Gupta says that Zomato has come down significantly from the high level. Right now it is trading around its critical support zone Rs 76. Technically, it is in the oversold zone. From here there is an upside movement in the stock on the chart. If the stock manages to cross the level of Rs 82, then in the short term it can touch the level of Rs 88 to Rs 92. At present, the investors who missed the IPO, they have a good chance to invest again at the same price. The company has also reduced its losses in the December quarter, which remained a concern.
What is the opinion of Global Brokerage
Brokerage house Morgan Stanley seems bullish on Zomato. The brokerage has given a target of Rs 135 giving an overweight rating in the stock. At the same time, brokerage house City has also given investment advice and has given a target of Rs 118. While the brokerage house HSBC has given a target of Rs 92 giving a rating of hold.
latest trigger
App-based food delivery company Zomato has acquired 16.66 per cent stake in Mukunda Foods Private Limited, a food robotics company, for a cash consideration of $5 million. The board has also approved loans up to $150 million to Grofers in one or more tranches. Although experts say that this will put some pressure on the company’s body, but the outlook is better for the future. Zomato has a lot of cash. The company is continuously expanding its business. The business model of the company is good. The trend of ordering food online is increasing in India, so the business outlook is also strong.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
,