Zomato slides closer to listing price; falls 13% in 4 sessions

NEW DELHI: For the first time since its market debut, shares have dropped close to their listing price, largely because of non-stop selling in the last four sessions.

On Friday, the scrip fell another 6 per cent to slip to Rs 116.75, which is in the touching distance of listing price of Rs 115 on NSE. The stock has fallen nearly 13 per cent in four sessions. The stock’s market cap also fell below Rs 1 lakh crore during the crash.

The food delivery platform listed with much fanfare last year and never looked back, doubling in just a few days. But recent concerns over loss-making companies have dealt a blow to its prices. Shares of its new-age tech peers

, PB Fintech and have also been on a downward journey.

On Friday, Paytm was down about a per cent, falling for the 13th instance in the last 14 sessions. PB Fintech fell 4 per cent, while CarTrade was down half a per cent. Even , one of the few profitable e-commerce companies, was down over a per cent.

Despite these concerns, most analysts believe Zomato is a ‘buy’ candidate. The company exists in a duopoly and with the economy on a growth path again, analysts believe it has a large market to flex its muscles.

Zomato has a median price target of Rs 166 in 12 months by 17 analysts. The most bullish projection pegs the stock at Rs 220, while the most bearish believes it will slide down to Rs 90.

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None of the analysts believe it is anywhere close to delivering a profit.

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