Zomato share price soared more than 13 per cent to Rs 52.60 apiece on BSE on Tuesday, after the company’s net loss halved in Apr-Jun quarter of the fiscal. The food tech player posted a consolidated loss at Rs 186 crore for the quarter ended 30 June 2022, as compared to a loss of Rs 361 crore in Q1FY22. Revenues during the quarter jumped 68 per cent on-year to Rs 1,414 crore. Technical analysts say that the recent sell off had sent the Zomato shares in deeply oversold zone; now the recent pullback is seeing a technical pullback. “This pullback can take the stock to around 55-57 levels where again it is likely to find resistance,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com.
Vaishnav advised investors to hold Zomato share a bit as of now. “However, all pullbacks on the higher side may be used as an opportunity to exit,” he added. In last five days, Zomato stock price has rallied more than 28 per cent. While, it has fallen 62 per cent so far this year, and 46 per cent in last six months. Last month, Jefferies suggested to buy the stock, and pegged a target price of 100 apiece. It had noted that after a sharp correction in Zomato share price, the stock was still at a premium to global and regional peers.
Much improved Q1FY23 earnings where Zomato management are clearly showing their intent in turning Zomato into a profitable venture has led to a strong rally today, AR Ramachandran, Co-founder & Trainer, Tips2Trades told FinancialExpress.com. Ramachandran advised investors to buy on dip near Rs 48-48.5 for higher targets of Rs 61-65.7 in the coming days.
Zomato’s adjusted Ebitda loss for the April-June quarter of the fiscal was down to Rs 150 crore from Rs 170 crore in the year-ago period. “Now that the Zomato-Blinkit deal is approved, we have three companies — Zomato, Blinkit and Hyperpure — in the order of business size/impact. In addition to these three, we also have Feeding India. We are now at a stage of life where we are maturing from running (more or less) a single business to running multiple large companies,” Deepinder Goyal, founder and CEO of Zomato, wrote on the company’s Slack channel last week.