Shares of restaurant aggregator and food delivery platform Zomato continue to drop on Friday, falling nine percent on the Bombay Stock Exchange (BSE). Share prices dipped to Rs 113.75, marking its lowest close since being listed on 23 July 2021.
The steep drop in the stock price lowered Zomato’s market capitalisation below one trillion rupees, to Rs 83,537 crore on Friday, as per BSE data.
The decline caused the company to drop out of the 50 most-valued listed companies in terms of market cap, reported Business Standard.
Stock prices continued to decline for the fourth consecutive day on Friday, dropping an overall 16 percent during the period. Hitting a record low of Rs 112.55 in intraday trading, the share prices fell 10 percent despite a five-fold increase in trade volumes.
In the past month, Zomato’s shares have underperformed the market, with a 14 percent decline as compared to five percent rise in the BSE Sensex.
Over the last three months, Zomato saw a three percent decline in the benchmark index, while the stock dropped by 18 percent, as per Business Standard’s report.
Zomato’s tech peers, such as PayTM, CarTrade and Nykaa also reported a drop in stock prices. These companies, which have been called loss-making start ups, saw drops in stock prices ranging from half a percent to four percent.
Despite this, analysts believe Zomato to be a ‘buy’ candidate as it exists in a duopoly, according to Economic Times. It noted that according to analysts, the companies most bullish projection marks the stock price at Rs 220 per share, while the other end of the scale marks its price to go as low as Rs 90.
66 million Zomato shares were traded across the National Stock Exchange (NSE) and BSE, reported Business Standard. Following the decline observed over the last four days, Zomato’s stock price fell 33 percent from its 52-week high of Rs 169.1 on 16 November, 2021.
(With inputs from Business Standard and Economic Times)
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