New Delhi, January 24: Shares of online food aggregator Zomato extended its losses from last week and declined 18 per cent in early trade on Monday apparently due to low valuations. Over the past one-month period, Zomato’s shares fell nearly 30 per cent.
Listed in July 2021, Zomato shares are, however, up more than 20 per cent from its IPO issue price of Rs 76. At 12.43 p.m. on Monday, it was at Rs 93 per share.
“Zomato is witnessing a vertical fall and slipped below the low made on a listing day which is not a good sign for any counter. There is a risk-off situation across the globe amid fear of tightening by the US Fed where if we look at the trend then there is a sharp sell-off in growth stocks (new edge businesses) especially loss-making companies,” said Santosh Meena, Head of Research at Swastika Investmart. Zomato Share Price Funny Memes & #stockmarkets Jokes Go Viral After Indian Stock Markets Slump!.
“Many new edge companies came out with unrealistic valuations amid euphoria in the market but we know that only a few companies will survive in the long run and I believe Zomato has the potential to perform in the long run.”
The ongoing correction is leading to stock at a reasonable valuation where aggressive investors can use it as a buying opportunity with a long-term view, he added. The company’s market capitalisation fell below the 1 lakh crore-mark last week and on Monday morning it was at Rs 73,085 crore, NSE data showed.
(The above story first appeared on Today News 24 on Jan 24, 2022 04:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
