The price of Zomato shares fell below listing price on National Stock Exchange. The stock prices have fell by 9.235 and it has happened because of non-stop selling of the shares in last four sessions.
On Friday, the prices of the stock recorded highest fall in 52 weeks. Market closing price of the stock was Rs113.15. Zomato was listed in National Stock Exchange on July 23, 2021 at a price of Rs 115. The stock market cap of the food delivery giant also fell below 1 lakh crore during the continuous crash.
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Zomato was listed with great hype and the prices of shares doubled in no time. New age tech companies that got listed recently have seen losses in quarterly results which has caused fall in share prices.
Paytm also launched its IPO last year and has seen rainy days. Paytm shares have fallen by 3.52% in National Stock Exchange. Nykaa has been a profit making company that has recently launched its IPO. Despite of making profits the share of Nykaa fell by 1% due to the news.
Despite these concerns, most analysts believe Zomato is a ‘buy’ candidate. The company exists in a duopoly and with the economy on a growth path again, analysts believe it has a large market to flex its muscles.
Zomato has a median price target of Rs 166 in 12 months by 17 analysts. The most bullish projection pegs the stock at Rs 220, while the most bearish believes it will slide down to Rs 90. However, experts believe that Zomato shares are not even close to delivering any profits to its shareholders.
