Jun 9, 2024
Why Zomato share price tanked 7% today; should you buy, sell, hold? Here’s what could help the stock
Zomato shares tanked over 7% today in the morning trade, touching an intra-day low of Rs 50.35 after the company’s fiscal third-quarter net loss widened over five-fold on-year to Rs 343 crore from Rs 66 crore, mainly due to an exceptional gain in the same quarter last year. The company’s revenue from operations in the October-December 2022 quarter jumped 75% to Rs 1,948 crore from Rs 1,112 crore in the previous year. Later in the day, Zomato share price recovered, and the stock was trading 0.83% lower at Rs 53.95. Its shares touched a 52-week high of Rs 95.30 on February 10, 2022, and a 52-week low of Rs 40.55 on July 7, 2022.
Deepinder Goyal’s food delivery company added 23 million new customers (customers placing at least 1 order in the year) in CY22 compared to 23.6 million in CY21. Zomato’s high-frequency customers (with annual ordering frequency of more than 50) in CY22 stood at 2.7 million, ie, 50% growth from 1.8 million in CY21.
Earlier, ahead of the results announcement, Kotak Institutional Equities had estimated a consolidated net loss of about Rs 500 crore for the online food delivery aggregator on an operating loss of Rs 463 crore. “Overall EBITDA loss of Zomato expands sequentially on account of full quarter consolidation of Blinkit,” the brokerage said. Meanwhile, Emkay Global had expected Zomato to report a loss of Rs 320.50 crore for the December quarter compared with Rs 378.90 crore in the year-ago quarter. Net sales were seen rising 65% on-year to Rs 1,834.80 crore compared with Rs 1,112 crore in the year-ago quarter. Ebitda margin was expected at -19.7% against -44% in the year-ago quarter.
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