Intraday trading on the Bombay Stock Exchange saw Zomato shares fall by 5% to Rs 120.60 per share on Tuesday, following a 9-per cent drop in the stock has been under pressure since the anchor investor lock-in period expired. According to analysts, the conclusion of the one-month lock-in period for anchor investors, as well as concerns in the US operations, has caused a significant drop in Zomato stock.
A profit-taking session occurred on Monday when the anchor investor lock-in period expired, and the stock plunged 15 percent in two days as the overall markets sank. However, fundamentals have not changed, and long-term investors are encouraged to keep their positions with a stop loss of Rs 105,” said Rahul Sharma, Co-Founder of Equity99.
Zomato’s first public offering ushered in a new era because of its unique business model, which made it the first of its kind to be listed. In addition, it drew a huge number of anchor novels According to Sharma, “even though it’s a loss-making corporation, it has a good valuation based.
Although Zomato’s shares are still up 6 percent from their 52-week low, they are down roughly 20 percent from their peak. Analysts believe that Rs 120 is a critical threshold for Indians. A daily closing below 120 could prompt a further fall in the near term, bringing Zomato’s share price down to Rs 104. Financial Express Online quoted Tips2Trades co-founder and trainer AR Ramachandran as saying, “131 will be a strong barrier.”
Till now on the BSE, 12 lakh shares have been traded; on the NSE, 2.78 crore units have been transacted. As of 11 AM, Zomato’s shares were trading at Rs 123.95, down 2.40 percent from their day’s low. Zomato is a value stock, according to ICICI Securities. The domestic brokerage and research business, when it First Covered Zomato , projected that the food-tech giant might grow by up to 70% from its current levels.
Hem Securities’ Astha Jain, a Senior Research Analyst, expects more selling before building a foundation around Rs 110-115. Long-term traders may decide to take the company as we estimate it to be once it has clearly expanded sales volume in each of the last 4 years to be food delivery space in India in terms of Feds, funds allocated to customer and user acquisition and retention, as well as expanding delivery and strategic decision-making process, will boost the company’s future growth.