In intraday trade on August 2, 2022, shares of Zomato Ltd, a leading food delivery platform, rose 17.58% to Rs.54.50 per share.
Zomato on Monday said its consolidated net loss for the fiscal first quarter almost halved to Rs 186 crore, PTI reported.
During the quarter, the company’s total revenue rose to Rs. 1,582 crores from Rs. 91,660 crores last year. However, the total cost also increased to Rs.1,767.7 crore from Rs.1,259.7 crore, the company told regulators in a statement. In a letter to shareholders, Deepinder Goyal’s managing director and chief executive officer sought to allay concerns about the cost of acquiring Blinkit (formerly Groovers) and weak corporate governance, PTI said in a report. “To guarantee that everyone got a good deal, we first impartially assessed all acquisition options in the high-speed commercial arena and undertook rigorous due diligence, consultation, and negotiation with a focus on Blinkit.” deal like any other deal,” Goyal said…
Should I Buy or Sell Zomato Stock? In a report published a week ago, leading broker Jefferies maintained its Buy rating on Zomato shares and a target price of Rs100, confirming that grocery delivery profitability is steadily increasing. Jeffreys also said that unlike before, Zomato wanted to invest in multiple companies, but now the focus is on saving money. Blinkit was perhaps the only exception in this regard and dealt a serious blow to the company.
According to Brokerage, the analyst expects the focus to be on profitability as “the urgent need for liquidity will allow Swiggy to grow its secondary business (specifically Swiggy’s Instamart Quick Trade offering) as well.” He says unlike other sectors in India, the industry is consolidating and profits are expected to rise as competition rages. Reserves the right to trade after trades with Blinkit. Zomato has a Buy rating with a price target of Rs 118. HSBC Securities India announced on July 25 that online grocery retailers Blinkit and Zomato will offer customers access to grocery delivery, giving Zomato a foothold in the online grocery market.
Zomato’s stock has hit a low. Jeffreys says “buy now” is attractive and the expected return can exceed 100%.
Shares of Zomato were down 13% on Monday and 7% on Tuesday at 44.10 rupees.
Analysts at global research and brokerage firm Jefferies say Zomato stock could be an attractive entry point for long-term investors. After a significant correction in Zomato’s share price, the stock is currently trading at an annual EV/GMV of 0.9x and EV/sales of 3.5x. The medium-term outlook for a higher GMV makes sense.” The brokerage firm reserved 100 rupees per share. Zomato’s shares were down 13% on Monday and 7% on Tuesday at 44.10 rupees.
Shares of food suppliers have fallen 69% under pressure this year. Jeffreys said, “Fears that the Fed will tighten austerity policies will hit Internet companies that are running in the red around the world.” The industry has gone through a period of correction as the focus shifted from growth to cash flow.
Why average Indian investors shouldn’t in their hopes on the Zomato IPO
The opening of restaurant and food delivery company Zomato has generated a lot of buzz among Indian business investors. However, the average investor expects to be somewhat deceived when buying company stock.
When Zomato went public on the BSE today (July 14), only 10% of the stock was available to investors.
“Every time, it’s 35%, and I seldom ever share… Would receiving 10% in the IPO make me lucky? On July 13, this was live-streamed on YouTube by financial content creator and CPA Rachana Rand.
Who will invest in Zomato IPO?
Although the Securities and Exchanges Board of India (SEBI) allows loss-making entities to go public, companies are required to invest 75% of their IPO equity capital in Qualified Institutional Investors (QIBs). QIB is a SEBI-registered public financial institution, commercial bank, mutual fund, and foreign securities investor.
Up to 15% participation in an initial public offering (IPO) is for non-institutional investors. h Corporations (individuals, companies, corporations) offer IPO shares of more than Rs 200,000. In this case, an additional 6.5 million shares are reserved for Zomato employees.
QIB, a restaurant listing, and food delivery platform plans to “distribute up to 60% of QIB’s capital if anchor investment is required,” according to a proposal document (pdf). Anchor investors are those who fall into the QIB category and spend more than INR 100 million (US$1.3 million) in the accounting process.
The Securities and Exchange Commission (SEBI) of India allows the registration of unprofitable companies
Zomato Share Price: Zomato Limited, a catering platform, was listed on the BSE and NSE on July 23, 2021. About 6.13 billion shares of Zomato, or 78% of the company’s paid-in capital, were frozen for the year, and stock analysts warned of the risk of selling shares, calling it a “sell” idea. Exist. Short-term and medium-term as inventories increase.
Anuj Gupta, Vice President of Securities Research at IIFL, comments on Zomato’s stock entry after a one-year lock-up period: – The one-year lock-up period is very important for a launch. Next week transactions of individuals, corporate employees, founders of companies, etc. close under selling pressure.
Avinash Gorakshkar, head of research at Profitmart Securities, calls Zomato stock an ideal stock for short-term “additional sales”, “there are a lot of stocks, so an immediate sale by mutual agreement is not possible.” Exist. When a stock hits its peak during an IPO, it immediately comes under selling pressure if it is close to its offering price. Therefore, Zomato should be an ideal strong variety in the short to medium term.
Zomato was listed on the BSE and NSE on July 23, 2021, at a premium of over 51%. Zomato shares will trade at Rs. 169, a record high, and post-IPO growth has led to a market capitalization of Rs. Get over the 1st. However, food industry stocks sold off after hitting record highs and 52-week lows in the recent session. Zomato shares closed on the NSE on Thursday at Rs 53.50 per share. It beat the 52-week low of Rs 50.05 per share by Rs 3.45.