Shares of Zomato Ltd fell for the seventh straight session, inching closer to the key Rs 225 mark on BSE on Tuesday. The stock is down 20.25% in seven days, beginning 2025 on a negative note. The stock of the online food delivery firm has fallen from Rs 284.85 on January 2, 2025 to Rs 227.15 in the current session. Of nine sessions in 2025, the Zomato stock has closed lower in eight sessions. The stock ended 6.52% lower against the previous close of Rs 243 on January 13.
The stock has fallen 25.45% from record high of Rs 304.50 reached on December 5, 2024.
Foreign brokerage Jefferies has downgraded Zomato Ltd to 'Hold' from "Buy' rating. It has also pared its target price to Rs 275 compared with Rs 335 earlier, citing a rise in competition in the quick commerce space. The brokerage expects the stock to consolidate for a year.
On the other hand, Bernstein has assigned an outperform rating to the stock with a target price of Rs 335. Zomato has a leadership positioning in food delivery & quick commerce. Zomato has seen strong user acquisitions and expanding total addressable market through Dine Out & other growth option, the brokerage said.
Zomato is among the large cap ideas of Emkay Global.
Emkay likes digital adoption as a long-term theme and said Zomato is one of the better ways to play this. The brokerage expects a strong growth in both quick commerce and food delivery, and the valuation at 9 times EV/Rev (FY26) is not outrageous. Profitability is structurally improving as operating leverage kicks in, it said.
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, "Zomato is currently trading at Rs 227, marking a significant breakdown below the Rs 241 level which was intact since August 2024. The stock is now trading below all key moving averages, including the 20-, 50-, 100-, and 200-day EMAs. Notably, Zomato has breached its 200-day EMA, a level it had held for the past two years, signaling strong bearish momentum. The decline has been accompanied by a surge in volumes, further amplifying the selling pressure. Given the current technical setup, Zomato appears to be a sell-on-rise candidate. Traders may consider placing a stop-loss at Rs 245, with downside targets set at Rs 205, as the bearish sentiment prevails."
A R Ramachandran, SEBI registered Independent analyst says, " Zomato is bearish and very oversold on the Daily charts with next support at Rs 198. Investors should buy only if Daily close is above resistance of Rs 240, which could lead to a target of 264 in the near term."