This is the first time that Zomato has come down from its issue price of Rs 76.
Shares of Zomato on Tuesday continued their declining trend after posting quarterly numbers for the December quarter of the current financial year 2021-22. The food delivery company had narrowed its consolidated net loss to Rs 67.2 crore for the third quarter (Q3) as against Rs 352.6 crore in the same quarter last fiscal. However, in the third quarter, the company’s expenses grew on a year-on-year basis.
Here are the five major points of decline in Zomato’s stock:
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Shares of Zomato fell 8.07 per cent to hit an all-time low of Rs 75.75. This is the first time that the stock has fallen below its issue price of Rs 76.
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The food-tech firm has fallen nearly 20 per cent in the past four trading sessions.
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During Q3, Zomato had said that reduction in customer delivery charges and a softening impact of the COVID-19 reopening, including some changes from delivery to dining out, resulted in weak gross order value growth.
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Zomato’s total expenses in Q3 stood at Rs 1,642.6 crore, up from Rs 755.7 crore in the same period last fiscal. According to a research report by JM Financial Institutional Securities Ltd, “Zomato reported weak results in Q3 FY22.”
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The food delivery firm made a strong debut on the exchanges in July last year. The stock has fallen more than 40 percent this year amid recent selloffs in new-age tech stocks.
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