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Home / Markets / Stock Markets /  Zomato shares surge 35% this month. Should you chase now? What experts say
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Zomato shares have been in uptrend after hitting its new 52-week low of 40.60 apiece on NSE last month. This food platform stock has risen from around 46.80 to 63.10 apiece levels in August 2022, logging around 35 per cent rise this month. 

According to stock market experts, Zomato has reported better than estimated Q1FY23 numbers. And the company management has promised to meet the break even in next four quarters. Apart from this, market is buzz about the food tech giant pausing its Zomato Wings for a while. They said that the stock is currently trading in the range of 48 to 70 apiece levels and those who have this stock in their portfolio are advised to hold the stock and exit around 70 apiece levels.

Speaking on the reasons that is fueling Zomato share price rally, Ravi Singhal, CEO at GCL Securities said, "Zomato has reported better than street estimated Q1 results and its management has promised to meet the breakeven in next four quarters. Apart from this, the market is buzz about food tech giant halting Zomato Wings, which it had incepted in November 2021 to facilitate equity funding for restaurants and cloud kitchens. However, the stock is still trading below its issue price of 73 per equity share and hence one should not buy the stock in current rally and it is facing huge hurdle at around 70 apiece levels."

Echoing with Ravi Singhal's views, Anuj Gupta, Vice President — Research at IIFL Securities said, "Zomato shares are currently trading in the range of 48 to 70. So, those who have this stock in their portfolio are advised to hold the stock and exit around 70 levels. The stock is currently range bound and bullish or bearish trend in the scrip can be decided only on the breakage of either side of the current range."

In Q1 results announced at the beginning of August 2022, Zomato narrowed its consolidated loss to 185.7 crore in the quarter ending June 2022. The food tech giant had posted a loss of 359.7 crore in Q4FY22. However, during concall, company management promised that Zomato would meet its break even in next four quarters that attracted market bulls leading to rise on Zomato share price this month.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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