Zomato shares tumble over 20% after announcement of Blinkit acquisition
1 min read . Updated: 04 Jul 2022, 11:16 AM IST
Premium- Zomato share price has tumbled from ₹70.50 to around ₹55 apiece levels on last six straight sessions
Zomato share price: Extending sell-off on sixth straight session, Zomato shares are down over 2 per cent in early morning deals. Zomato share price today opened with downside gap of over 2 per cent and hit intraday low of ₹54.05 on NSE. The food aggregator stock has been nosediving after it announced to acquire Blinkit (earlier known as Grofers) for ₹4,447 crore. The board of directors of Zomato had approved acquisition of cash-strapped Blinking on 24th June 2022. After announcement of this acquisition, Zomato shares have tumbled from ₹70.50 to ₹55.10 apiece levels, losing over 20 per cent in 6 straight sessions.
According to stock market experts, the stock is looking weak on chart pattern and it may move further down up to ₹30 to ₹25 levels, if it gives breakdown below ₹50 levels on closing basis. They advised investors to avoid taking fresh position in the counter and those who have this stock in their portfolio should strictly maintain stop loss below ₹50.
"In today's funding winter, people have increased their scrutiny on profitability, Zomato net losses tripled in the recent quarter. Investors are not taking it kindly the fact that a loss-making company is acquiring another company which might be subjected to strict govt regulations and has not yet demonstrated path to profitability," Yashvardhan Singh, principal associate at Sarvaank Associates, had said.
"Zomato shares are looking weak on chart pattern and it may become more weak below ₹50 apiece levels. Those who hold the stock should maintain strict stop loss below ₹50 as the stock may go up to ₹30 to ₹25 per shares after giving breakdown below ₹50 on closing basis. Fresh investors are advised to avoid taking any position in the counter and find out better stock for investment," said Sumeet Bagadia, Executive Director at Choice Broking.
In YTD time, Zomato share price has tumbled over 60 per cent and its current market cap is around ₹41,970 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
