Zomato share Price: 10 percent fall in Zomato shares – is it beneficial to buy now? Or should I sell what I have?

There was a huge fall in the share price of Zomato in Tuesday’s trading session. Zomato shares are under selling pressure due to weak third quarter results. In today’s trading session Rs. Zomato shares opened at Rs 223. Hit at 207.80 in intraday. After 10 per cent fall at 11:30 am, Rs. It is trading at 217. Can I buy this stock now? Or sell existing shares? What do the experts say?

Reasons for the fall in Zomato’s stock.

The company planned rapid store expansion to accommodate orders from instant commerce firm Blinkit, which hit margins. As a result, Zomato on Monday announced that its consolidated net profit fell 57.2 per cent to Rs 59 crore in the December quarter. In the same period last year, the company had earned a net profit of Rs 138 crore.

Click here to know complete details about Zomato Q3 results.

According to Osho Krishnan, Senior Analyst, Technical and Derivatives, Angel One Brokerage, Zomato’s share price fell below 200 SMA on the daily chart due to the Q3 results decline. With this, a technically strong bearish candlestick was formed. From a broader technical perspective, the stock has broken out of a ‘double top’ setup. This indicates further improvement in the near term.

“Zomato stock has support at Rs. 200 level. Whereas, the share was at Rs. 100. There is also resistance between Rs. 245, Rs. 250. Once this is crossed, bullish sentiment can be seen among the investors. However, until Until such progress is seen, one should remain cautiously negative on the stock,” Osho said.

What are brokerage firms saying?

The Numa Brokerage report shows that Blinkit’s growth in the dark store has exceeded expectations, contributing to the rapid growth. However, increased start-up costs for opening a store are likely to cause a temporary setback to profitability.

Nuama expects these cost increases to add dark stores to have a negative impact on short-term profitability. But once these stores become available, profitability will stabilize in the coming quarters. EE Brokerage has maintained ‘Buy’ rating with an updated sum-based target price of Rs 300 (earlier Rs 325) in line with FY27 estimates. This means that according to Nuvama, Zomato’s share price target is Rs. 300

Motilal Oswal Financial Services.

“Zomato’s food delivery business is stable. Blinkit still has a huge opportunity in industry sectors like retail, grocery, e-commerce. Motilal Oswal Financial Services said, we have decided that the share price target of Zomato is Rs 270.

(Note:- These are only experts’ opinions. Hindustan Times Telugu has no affiliation with it. It is advisable to consult a SEBI registered financial advisor before investing in any stock.)