Zomato share price tanks 14% in 2 days after Blinkit acquisition deal; should you buy, sell or hold-
时间:2024-06-26 11:35:11 阅读(143)
Zomato share price has tumbled nearly 15 per cent to Rs 60.45 apiece on BSE in two trading session after the online food delivery platform announced the acquisition of Blinkit (formerly known as Grofers) for Rs 4,447 crore in a share swap deal as part of its strategy of investing in quick commerce business. The stock has plunged over 64 per cent from its all time high of Rs 169 apiece.
Technical analysts say that Zomato stock looks absolutely weak on the technical charts.”From a technical perspective, the stock is now back below 50-DMA; and it is below all its key moving averages as well. RSI has marked a fresh 14-period low and is bearish,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com.
Ravi Singh, VP & Head of Research, Share India Securities told FinancialExpress.com that the latest Zomato – Blinkit deal is not going to make any difference in the stock sentiments in near term as Blinkit is at an early stage and its business model is yet to be proven. “Investors are advised to refrain themselves from taking fresh buy positions at current levels,” Singh advised. He added that the stock may touch levels of 55 in the current scenario and any recent reversal in the trend looks unlikely.
Zomato stock price is down considerably as investors send a strong warning to the promoters of acquiring companies which could take a long time to break even thereby adding more pressure to their existing business margins, said an analyst. “Technically, till stock does not close above 80 on the daily chart, the trend is bearish. 52-56 remains a strong support zone,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com.
The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.
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- d that milk prices are unlikely to witness spikes in the coming months due to cooler temperature in April and parts of May, which has delayed the onset of ‘lean’ season, when milk production usually drops.
Retail inflation in milk was reported at 8.85% in May 2023. The milk inflation has remained elevated at over 6% since August 2022. Despite India being the largest milk producer since 1998, the commodity has been the second biggest factor after cereals such as rice and wheat in driving up retail inflation in the last fiscal.
Milk has the second highest weight in the food and beverages basket of the consumer price index at 6.61%, a notch lower than cereals and products with a 9.67% weight. Organised players, including Mother Dairy and Amul, hiked prices multiple times in the last one year citing higher fodder cost, robust demand and some impact due to reports of lumpy skin disease.
Industry sources said feed cost, which has a share of more than 65% in the cost of production of milk, has increased to Rs 20/kg from Rs 8 a year ago. The finance ministry in April had attributed the elevated milk inflation to a demand supply mismatch and said it could be one of the factors apart from volatile international crude oil prices and constrained supplies of milk would influence the country’s inflation trajectory.
“Milk production has been impacted by a lumpy skin disease infecting millions of cattle in late 2022,” the ministry said in the monthly economic review, adding that the vaccination drive against the disease is expected to curb the spread and immune the cattle against the skin disease.
According to official data, currently India is the world’s largest milk producer, and has a share of 23% in global milk production. For the first time in decades, the country’s milk production is likely to have stagnated in 2022-23 due to Lumpy Skin Disease in cattle across several states and the lagged effect of Covid-19 in the form of stunting of the animals, a senior official with department of animal husbandry and dairying recently had stated. The milk production was estimated at 221 million tonne in 2021-22.
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