Current Trends in Zomato’s Share Price
Zomato has recently experienced significant fluctuations in its share price, marking a decline of over 2% on Monday alone. This downturn has extended to five consecutive trading sessions, with a total drop exceeding 8% in this period. The stock touched a low of ₹272.15 on the BSE, highlighting growing concerns among investors.
Market Performance
Prior to this decline, Zomato shares had hit a 52-week high of ₹298.20 on September 24, 2024. However, post this peak, the stock has been on a downward trajectory, prompting questions about the reasons behind this slump.
Leadership Changes and Their Implications
Adding to the uncertainty, Zomato announced the resignation of its co-founder and Chief People Officer (CPO), Akriti Chopra, who left her position to pursue other interests. In a stock exchange filing dated September 27, the company confirmed that Chopra, who has been integral to Zomato’s growth for the past 13 years, would officially resign that same day.
Chopra’s tenure has been marked by her efforts in building and scaling Zomato’s legal and finance teams, previously serving as the Chief Financial Officer (CFO). Her departure could potentially impact investor confidence as she was a key figure in the company.
Analyst Insights
Despite the recent drop in Zomato’s share price, analysts remain cautiously optimistic. Milan Vaishnav, founder of ChartWizard FZE and Gemstone Equity Research, maintains that Zomato’s overall trend remains upward, provided the stock stays above the critical levels of ₹255 – 258. According to him, the immediate target for recovery is within the range of ₹290 – 295, which may serve as a resistance level.
Analysts recommend that current investors hold off on making new investments in Zomato shares until these prior highs are surpassed. It may also be prudent for existing investors to adjust their stop-loss levels to around ₹255 to mitigate risks effectively.
Current Market Overview
As of midday trading, Zomato shares were noted to be down by 1.60%, trading at ₹273.80 per share on the BSE, with the company’s market capitalization standing impressively above ₹2.41 lakh crore. This valuation reflects a year-to-date growth of over 122% and an impressive 170% increase over the past year, making Zomato one of the standout performers in the market.
Conclusion
In summary, while Zomato’s share price has recently come under pressure, the overall trajectory appears to be promising, especially with the considerable gains seen over the previous months. Investors should remain vigilant and consider both the impact of leadership changes and market conditions before making further investment decisions.
Disclaimer: The opinions and insights presented above reflect those of individual analysts and do not necessarily align with broader market evaluations. Investors are encouraged to consult certified professionals prior to making any investment decisions.
