Zomato hits record low, market capitalisation falls below Rs 1 trillion
With the last four day’s decline, the stock price of Zomato has tanked 33 per cent from its 52-week high of Rs 169.10 hit on November 16, 2021
Shares of Zomato continued to wilt under selling pressure on Friday, falling 9 per cent on the BSE to Rs 113.75, the lowest close since its listing on July 23, 2021.
The sharp decline in the stock price dragged its market capitalisation (m-cap) to below the Rs 1-trillion mark to Rs 89,537 crore on Friday, the BSE data showed.
With this, Zomato has dropped out of the 50 most-valued listed companies in terms of m-cap.
In the past one month, Zomato has underperformed the market, with a 14 per cent decline compared to a 5 per cent rise in the S&P BSE Sensex.
In the last three months, the stock has declined 18 per cent against a 3 per cent fall in the benchmark index.
Rahul Sharma, co-owner, Equity 99, said: “Zomato’s fall comes days after Paytm crashing to its historic low. We see this as a good opportunity for long-term investors to add these counters at considerable discount as they might be reporting losses now but has huge growth potential considering their business models.”
Earlier during October 2021 Online food aggregator Zomato stocks took a beat after a Twitter backlash when its customer care executive cited “language barrier” as the reason why she couldn’t initiate a refund and declared “everyone should know Hindi a bit” as it was “the national language”.
Zomato top Management which initially apologised and terminated the services of the employee, later reinstated her. Founder Deepinder Goyal said “the country’s level of tolerance and chill needs to be way higher than it is nowadays”.
Unhappy with this many from tamilnadu state in social media states they unloaded Zomato app
