📉 Zomato Share Price Plummets by Over 5% Today
Online food delivery platform Zomato’s share price has dropped by more than 5% today. According to brokerage firm Macquarie, the company’s shares have seen a decline even from their previous estimates. The Zomato share opened at ₹178.95 on the BSE today, but shortly after, the price fell by over 5% to ₹171.25.
Macquarie predicts a 46% decrease in Zomato’s share price over the next 12 months, attributing this to the increasing competition in the sector. The brokerage firm has raised Zomato’s target price to ₹96.
Macquarie has downgraded Zomato to an ‘Underperform’ rating from its previous ‘Neutral’ rating. Two other brokerage houses have also tagged Zomato as a ‘Sell’.
According to Macquarie, JioMart will also begin delivery within 30 minutes starting next month, posing direct competition to Zomato. JioMart will initially offer this service in 20-30 cities.
Zomato reported a net profit of ₹175 crore in the January-March 2023 quarter. This marks a turnaround from the ₹188 crore net loss in the same quarter last financial year.
Over the past six months, Zomato’s share price has surged by more than 48%. In the past year, the share price has increased by a whopping 159%, doubling the investment of investors who held the stock during this period.
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