
Shares of online food aggregator Zomato Ltd climbed 0.92 per cent in Friday's trade to scale their new record high of Rs 286.50. The stock gave up its entire gains as the session progressed and slipped 4.68 per cent from the lifetime high level to hit a day-low price of Rs 273.10. At this price, the multibagger scrip has rallied around 119 per cent on a year-to-date (YTD) basis.
Analysts largely remained positive on the counter for the long term. "We continue to remain positive on Zomato as the company's growth is driven by the food-delivery business as well as Blinkit. Food-delivery business is stable and Blinkit is expected to turn EBIDTA positive. Zomato has recently acquired Paytm's movie-ticketing business which will strengthen the company's going-out platform," Sneha Poddar, VP of research, broking and distribution at Motilal Oswal Financial Services, told Business Today TV.
Investors should accumulate the stock around Rs 260-270 levels with a long-term view, she mentioned.
Zomato has been one of the top performers in the recent past, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "Existing investors can hold on to the stock. For fresh entry, one should wait at current levels and consider buying it on a further dip," Bathini added.
On technical setup, support could be seen in the Rs 270-260 range. With that being said, a decisive breach above Rs 295 is required for further upside.
"Zomato has been on a winning spree. The counter seems buoyant and expected to continue its upward trajectory in the near period. The 290-295 zone is likely to be seen as intermediate resistance, while a decisive breakthrough could propel the counter into uncharted terrain. On the lower end, strong support is placed around Rs 260-subzone," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Zomato stock price is bullish but slightly overbought on daily charts with strong support at Rs 268-270 levels. A daily close above resistance of 287 could lead to targets of Rs 305-345 in the near term," said Sebi-registered research analyst AR Ramachandran.
Around 36.91 lakh shares were last seen changing hands on BSE today. The figure was lower than the two-week average volume of 47.12 lakh shares. Turnover on the counter came at Rs 103.54 crore, commanding a market capitalisation (m-cap) of Rs 2,42,503.60 crore.