Zomato Shares Plunge 5% Post Q3 Results. Should You Buy, Sell Or Hold?

Posted on the 11 February 2022 by Geetikamalik

The loss of Q3 Zomato narrowed, assisted by a one-time increase, while income surged because of an increase in demand for restaurant food. Food delivery platform reported consolidated losses ₹ 67, driven by a one-time increase with ₹ 315.8 crore from stock sales in the Fitso sports platform. Zomato shares fell around 5% in BSE on ₹ 89 each on Friday’s opening offer Consolidated income from the company from the operation during October-December 2021 stands at ₹ 1,112 crore by opposing ₹ 609 crore in the period last year. Gross order value (GOV) grew 84.5% YoY and 1.7% QoQ until ₹ 500 crore.

“We believe that with organic and inorganic initiatives and well-funded balance sheets, Zomato remains the best game in the F & B market that grows fast. While short-term investors may feel disappointed, we believe that Zomato will appreciate long-term investors,” said Abhay agarwal, founder, and fund manager, Piper Serica, Sebi PMS registered.

Zomato connects QOQ’s weak growth in the government due to reducing customer shipping costs, in addition to the soft impact of post-covid reopening The contribution that decreases with weak growth in the government shows that growth is gentle while the cost pressure does not moderate. It is together with further allocation of ₹ 5.5 BN about tiring minority investment in cash and thus resulted in deducting our DCF value. Maintain selling rankings With the target price of ₹ 75, “said analyst at Dollat ​​Capital in a note.

Zomato raises ₹ 8,728 Crore through IPO (IPO) in July. It has used ₹ 367 crore on December 31, said in its financial statements. Zomato shares fell around 33% in 2022 (so far) so far Zomato shares have been corrected sharply after producing the highest level in November. Now, the results of the expectations below can put pressure again in stock. We hope to repair up to 82-80 levels. However, on the chart, it has strong support around 70 Up to 75 levels. Investors can wait for this level of support to buy shares, “said Anuj Gupta, Vice President at IIFL Securities.

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