Last Updated on Jan 24, 2022 by Manonmayi
Zomato shares have fallen below their listing price for the first time since their market debut, owing to nonstop selling in the previous four sessions. Last week, the stock dropped another 10% to a new 52-week low of Rs. 113.15. In just four sessions, the stock has lost roughly 17% of its value. During the crisis, the stock’s market capitalization plummeted below Rs. 1 lakh cr.
Last year, the food delivery company went public with great excitement and has never looked back, more than tripling in only a few days. However, recent concerns about loss-making companies have dealt a blow to its prices. Paytm, PB Fintech, and CarTrade, its new-age tech contemporaries, have also been on the decline.
Paytm was down by about 1%, last week, which was the 13th time in the past 14 sessions that it had fallen. CarTrade was also down 0.5%, while PB Fintech was down 4%. Nykaa, one of the few profitable e-commerce companies, was down more than 1%.
Despite these issues, most experts feel Zomato is a good investment. The company is a duopoly and experts believe it has a vast market to exercise its muscles now that the economy is on the mend.
17 analysts have set a median price objective of Rs. 166 for Zomato in the next 12 mth. The most bullish forecast puts the stock at Rs. 220, while the most bearish predicts a drop to Rs. 90. However, none of the experts think it has a chance of delivering a profit.