Is it good to buy Zomato shares now?
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The outlook is bullish as penetration of the food delivery business in India is still low but only aggressive investors are advised to hold this stock amid uncertainty about profitability,” said Parth Nyati, Founder, Tradingo.
Why Zomato share is falling today?
“Zomato paved the way for a new era as the company gained huge value on listing due to its unique business model, being the first of its kind player and attracting hefty anchor books,” he added. The recent selling spree has led to a sharp fall in the market cap of Zomato, which had breached the mark of Rs 1 lakh crore.
Operationally, both supply (restaurants) and demand side (MAUs, MTUs) metrics reported an impressive increase. This strength seems to be driven by opportunistic branding and marketing investments focused on driving the return of customer traffic post the second covid wave.
Should you sell Zomato shares?
Rather it finds Zomato’s valuation cheaper against food services, technology and consumer stocks. Zomato is a good value stock and its growth prospects make it a long-term play. However, in the short-term some profit-booking can continue in the stock, said experts.
Geojit has buy call on Zomato with a target price of Rs 183. The current market price of Zomato Ltd. is Rs 159.95. Time period given by analyst is one year when Zomato Ltd.
Is valuation of Zomato justified?
Zomato’s stock valuations are justified by the superior growth expected, the brokerage firm said in a note. While most domestic brokerage houses have given a ‘buy’ rating to Zomato, value investors such as Rakesh Jhunjhunwala and global brokerage firm HSBC have said not to buy the stock.
Is zomato an Indian company?
Zomato (/zoʊmɑːtoʊ/) is an Indian multinational restaurant aggregator and food delivery company founded by Deepinder Goyal and Pankaj Chaddah in 2008.