Shares of Zomato Ltd surged 4.55 per cent to hit a high of Rs 197.80 in Monday's trade. At this price, the stock was just 0.98 per cent away from its record high value of Rs 199.75, a level seen earlier this month on April 12.
The online food aggregator has hiked its platform fee on food delivery by 25 per cent to Rs 5 per order from Rs 4 earlier, effective April 20. "These are business calls which we take based on various factors from time to time," Zomato said
"This development (platform fee hike) is positive for the company and will translate into bottomline improvement. In terms of share price valuations, traders should wait for some cool-off," Sharad Avasthi, Head of Research (PCG) at SMIFS, told Business Today TV.
"For the short term, support will be at Rs 175-180 zone. Risk-reward ratio doesn't favour fresh entry here. Those holding can book profit at current levels," said CA Rudra Murthy BV, MD at Vachana Investments.
Bourses BSE and NSE have put the securities of Zomato under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.