Currently, the stock is down over 70 per cent from its all-time high. It touched an all-time high of Rs 169.10 on November 16, 2021. On a year-to-date basis, the shares have fallen over 62 per cent.
Shares of food aggregator Zomato continued its downtrend and tumbled 4 per cent to hit a new all-time low of Rs 50.35 on BSE. On Tuesday, the shares dived 10 per cent to hit a low of Rs 51.3 on BSE.
Currently, the stock is down over 70 per cent from its all-time high. It touched an all-time high of Rs 169.10 on November 16, 2021. On a year-to-date basis, the shares have fallen over 62 per cent.
Interestingly, the stock jumped over 8 per cent and touched an intraday high of Rs 56.45 on BSE. However, it erased all the gains and slipped into the red territory.
“Fall in tech-based growth stocks across the world, (particularly Nasdaq listed companies) has triggered a fall in shares of Zomato and similar new age non-profit making tech platforms,” Divam Sharma, Founder at Green Portfolio told Business Today.
“Falling global valuation multiples for similar businesses, rise in interest rates, and reducing appetite from FPI investors are further culprits,” he said.
“Another point to note here is the high growth expectations from these companies to sustain high valuation multiples along with high competition from the unlisted competitors have pushed such companies to increase M&A activities to secure in-organic growth,” he added.
He further said that Zomato as a business has achieved a sustainable large market share in the food delivery business. Output from some of the recent business diversifications, acquisitions and experiments are yet to be seen. Retail investors should still stay away from the stock and wait for the visibility of profitability to come before entering the stock.
Zomato made a bumper debut on bourses with the unicorn hitting the Rs 1-lakh crore market capitalisation mark. The stock opened at Rs 116, 52.63 per cent higher on NSE against the issue price of Rs 76.
Reference Link:- https://www.businesstoday.in/markets/stocks/story/zomato-shares-in-a-free-fall-hits-a-new-all-time-low-333126-2022-05-11