Zomato’s Free Fall Continues, Tanks 10% on Thursday; Lists Under ASM: Details

  • Investing.com
  • Stock Market News
Zomato’s Free Fall Continues, Tanks 10% on Thursday; Lists Under ASM: Details
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the online food aggregator Zomato (NS: ZOMT ) tanked 10% on Thursday at Rs 90.5 apiece, as investors continued fervent sell-offs in the stock amid a broad market selling pressure. 

Of the past seven sessions, the food delivery stock has plummeted in six, mirroring heavy sell-offs in technology stocks on Wall Street, as investors reshuffle their portfolios and exit risk-averse assets like tech stocks from emerging markets like India, amid stretched valuations and tightening monetary policies.

At Rs 90.5/share, Zomato ended today’s session 46.5% lower than its 52-week high of Rs 169.1, achieved in Nov 2021.

Zomato’s other new-age digital peers, like Paytm (NS: PAYT ), Nykaa (NS: FSNE ), PB Fintech (NS: PBFI ) and Cartrade Tech (NS: CART ) have been sliding since the past few sessions, each declining at least over 2% on Thursday.

Besides, Zomato has now been added to the list of additional surveillance measures (ASM) of both the exchanges, which includes securities under surveillance due to price variation, volatility, and volume variation, among others.

It is a market surveillance measure and is done to slash volatility in a stock. Zomato is listed under the short-term ASM list

Despite the recent market correction in the stock, Jefferies (NYSE: JEF ) continues to maintain its Buy call on Zomato with a TP of Rs 175, an upside of 93.4%, as it sees Zomato’s valuation higher than its global peers. 

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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100
  • Rishubh Gupta @Rishubh Gupta
    Shall we do short selling next week ?
    Like 0
  • Rishubh Gupta @Rishubh Gupta
    Shall we do short selling next week ?
    Like 0
  • V R Kotha @V R Kotha
    Guys, be careful. Major sellers are Jefferies and *****Investment. They want to sell at Higher prices. That's why they are recommending Buy.
    Like 0
  • Kaushal Verma @Kaushal Verma
    22
    Like 1
  • Rahul Sen @Rahul Sen
    it will to 20
    Like 1
  • Shaikh Azmi @Shaikh Azmi
    it will fall upto Rs.70/-
    Like 2
  • MUSIC MASTI @MUSIC MASTI
    It will go upto Rs150/-
    Like 1
  • MUSIC MASTI @MUSIC MASTI
    It will go upto Rs150/-
    Like 0
  • MUSIC MASTI @MUSIC MASTI
    It will go upto Rs150/-
    Like 1

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