Shares of Zomato continued to wilt under selling pressure on Friday, falling 9 per cent on the BSE to Rs 113.75, the lowest close since its listing on July 23, 2021.
The sharp decline in the stock price dragged its market capitalisation (m-cap) to below the Rs 1-trillion mark to Rs 89,537 crore on Friday, the BSE data showed. With this, Zomato has dropped out of the 50 most-valued listed companies in terms of m-cap.
The stock of the food delivery giant traded lower for the fourth straight day, shedding 16 per cent during the period.
In the intraday trade on Friday, it hit a record low of Rs 112.55, down 10 per cent on the back of an over five-fold jump in trading volumes. A combined 66 million shares changed hands on the NSE and BSE.
With the last four day’s decline, the stock price of Zomato has tanked 33 per cent from its 52-week high of Rs 169.10 hit on November 16, 2021.
In the past one month, Zomato has underperformed the market, with a 14 per cent decline compared to a 5 per cent rise in the S&P BSE Sensex. In the last three months, the stock has declined 18 per cent against a 3 per cent fall in the benchmark index.
Rahul Sharma, co-owner, Equity 99, said: “Zomato’s fall comes days after Paytm crashing to its historic low. We see this as a good opportunity for long-term investors to add these counters at considerable discount as they might be reporting losses now but has huge growth potential considering their business models.”
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