Shares of online food aggregator Zomato Ltd on Tuesday slipped from their record high levels, pausing their three-day winning run. The stock fell 5.09 per cent to settle at Rs 217.45. At this price, it was down 6.27 per cent from its record high of Rs 232, hit a couple of sessions back on July 15. Despite the mentioned drop, the multibagger scrip has gained 171.20 per cent in the past one year.
The stock has been one of the outperformers with over 170 per cent returns in a year, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. Investors with a high-risk appetite can add this stock on dips, given the company's futuristic business model, he suggested.
Technically, support on the counter could be seen at Rs 200, followed by Rs 190 level. And, resistance may be found at the Rs 225 range.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Zomato has been on a strong rally since surpassing the Rs 200 milestone. The stock has entered the overbought territory and the recent correction or profit-booking should be seen as a healthy development in the current bullish trend. The Rs 200 zone is expected to act as an intermediate support, with solid backing around the bullish gap of Rs 190 in the near term. On the upside, there are no apparent resistance levels."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, "The stock looked saw some correction post its sharp upmove. It may slip towards Rs 200 level in the near term. On the higher end, resistance will be at Rs 225 and a decisive close above the said level can only dictate next leg of the rally."
Last month, Zomato clarified over a report related to acquiring Paytm's movies and events business. "We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law," it stated in a BSE filing.
During the fourth quarter (Q4 FY24), the food delivery platform reported a consolidated net profit of Rs 175 crore as against a loss of Rs 189 crore in the year-ago period.
In Q4 FY24, Zomato's revenue from operations came at Rs 3,562 crore compared to Rs 2,056 crore in the corresponding period last year. The company also mentioned that its Blinkit (quick commerce) business turned adjusted EBITDA positive in March 2024.
Meanwhile, Indian equity benchmarks were closed today due to Muharram. The domestic bourses will reopen on July 18, 2024 (Thursday).