Zomato Share Price Today, July 25th, 2022: Zomato shares plunge over 14% to a new lifetime low as pre-IPO investors lock-in period ends

Last year, Zomato had made a blockbuster debut on the bourses, recording a 65.59 per cent premium on the first day. It build on its gains over the next few months and touched a lifetime high of Rs 169.10 per share on November 16 last year. However, after achieving this feat, the scrip has witnessed a steady fall over the next eight months, crashing nearly 73 per cent from its lifetime high.

Explaining Zomato’s recent performance in the exchanges Swastika Investmart’s equity research analyst Punit Patni said “The company has been shunned by the investors post the beginning of the rate hike cycle by the central banks globally and the huge sell-off in the tech sector. Further, the company will take significant time to show profitability and the current market sentiments are punishing startups that are growing without showing profits. Therefore, we are averse to Zomato Ltd. despite its strong position in the online food service platforms and the current correction.”

Speaking to indianexpress.com, Vinod Nair, Head of Research at Geojit Financial Services, explained that Zomato’s stock price has been declining as investor sentiment has been impacted due to the lack of profitability. Additionally, major hotel and restaurant chains too are not very happy with incumbent food delivery aggregators due to their rising commissions and may start pulling out of these apps later. This apart, there has been rising in competition in some cities which may impact Zomato’s revenues.