Zomato share price plunges 14% intraday, hits new all-time low; check what’s fuelling the sell-off

Zomato share price plunges 14% intraday, hits new all-time low; check what’s fuelling the sell-off

Zomato Share Price Updates: Zomato share price plunged more than 14 per cent to Rs 46 apiece intraday, a new all-time low, on BSE on Monday, as one-year lock-in period for the pre IPO investors has ended. The stock ended at Rs 47.55 apiece, down 11.4 per cent. The stock has plummeted 73 per cent from its all time high of Rs 169.10 apiece, touched last year in November. While on a year-to-date basis, Zomato stock has tanked 65 per cent. Analysts say that the end of one-year lock-in period has resulted a bit of a selling rush in the stock and this has also sent the stock in the oversold territory.

Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services advised investors sitting on negative returns to choose to hold on for some more time as some pullback may be seen once this selling pressure is gone. “The stock is, however, under a secular decline; adding more quantity to the existing one or buying just because the price is down is not advised,” Milan Vaishnav told FinancialExpress.com.

Earlier this month, analysts at Edelweiss said that the correction in the Zomato stock has now made valuations attractive. “Zomato’s order growth momentum is expected to continue, with 6.1% QoQ estimated order growth. AOVs are likely to remain flat, resulting in 6.2% QoQ GOV growth,” it said. The research firm also said that acquisitions for internet companies were also looking well placed. Zomato’s acquisition of Blinkit would be crucial for Zomato to capture synergies from delivery fleet integration. Zomato has corrected heavily from its high, owing to the impact of correction in tech stocks globally and concerns around the Blinkit acquisition.

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.