Zomato Tanks Over 18%, Shares Fall Under Rs 100 on Monday; Records All-Time Low

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Zomato Tanks Over 18%, Shares Fall Under Rs 100 on Monday; Records All-Time Low
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the online food aggregator Zomato (NS: ZOMT ) tanked 18.4% to Rs 92.75 apiece at 11:35 am on Monday after crashing 19% in early trade to record an all-time low of Rs 91.6 apiece.

At Rs 92.75 apiece, the food delivery stock has plummeted 45% from its 52-week high of Rs 169.1 in Nov 2021. 

The unicorn startup made a stellar debut on the Indian exchanges in July 2021 and hit the Rs 1-lakh crore market capitalisation feat. However, on Friday’s the company’s m-cap eroded under Rs 1-lakh crore and currently stands at Rs 73,085 crore.

For the first time since its listing, the stock’s price has rolled below Rs 100/share.

Market experts believe that the stock’s recent sell-off is due to the bearish trend in global stock markets. Wall Street major indices Nasdaq and S&P 500 ended last week at the lowest drops since March 2020.

While S&P 500 ended the week 5.7% lower, Nasdaq tanked 7.6% in the week, 8% and 15% lower compared to their all-time highs, respectively. 

There is a huge sell-off witnessed in tech stocks lately, as investors are reshuffling their portfolios and exiting risk-averse and richly-priced assets, as they show no near-term profitability amid looming fears over the Fed’s aggressive monetary policy, along with four interest rate hikes to curb rising inflationary pressures.

Zomato has the potential to survive in the long run, and the current price correction is leading to stock at a reasonable valuation where aggressive investors can use this correction as a buying opportunity with a long-term view, states an analyst at Swastika Investmart (BO: SWAF ).

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  • Rupa Maity @Rupa Maity
    I had 1000 share at the price of 152please suggest what to do..
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    • Kapil Goyal @Kapil Goyal
      hold on next 3 month
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      • Comment Guidelines

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  • anirudh rout @anirudh rout
    I had 1500 share at the price of 120 , Please suggest what to do ..!!
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    • Pan Gnos @Pan Gnos
      hold for 7 weeks only
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    • Pan Gnos @Pan Gnos
      hold for 7 weeks only
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    • Kapil Goyal @Kapil Goyal
      hold on 15 day
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