Zomato Share Price Declines for Fifth Straight Session: Is This a Buying Opportunity?

The share price of Zomato has experienced a downturn for the fifth consecutive session, with a notable drop of over 2% reported on Monday. The stock fell as much as 2.19%, reaching a low of ₹272.15 on the Bombay Stock Exchange (BSE). Over the last five trading sessions, the shares of Zomato have decreased more than 8%, raising questions among investors about the future trajectory of the stock.

Previously, on September 24, Zomato shares had reached a 52-week high of ₹298.20. However, since that peak, the stock has been on a downward trend. This decline coincides with significant company news, including the resignation of co-founder and Chief People Officer (CPO) Akriti Chopra, who left to explore other opportunities. On September 27, Zomato disclosed Chopra’s resignation in a filing to the stock exchange, stating that she had served the company for 13 years and had been instrumental in establishing and expanding its legal and finance divisions during her tenure as Chief Financial Officer (CFO).

Despite the recent decline, Zomato’s stock has shown resilience overall. Analysts point out that the shares have seen a robust increase of over 9% in just one month and have surged by more than 37% over the past three months. Notably, the stock has provided remarkable returns, boasting over 122% gains year-to-date (YTD) and more than 170% over the past year.

Market experts continue to view Zomato shares as part of an overall upward trend, indicating that this momentum has not been significantly disrupted. Milan Vaishnav, the founder of ChartWizard FZE and Gemstone Equity Research, emphasized that as long as Zomato’s stock remains above the ₹255 to ₹258 range, the positive trend is likely to persist. Vaishnav has set an immediate upside target for Zomato shares at ₹290 to ₹295, which may serve as a resistance level.

However, he advised caution regarding new investments in Zomato stock, recommending that investors refrain from entering fresh positions until the shares break through the aforementioned resistance levels. For those already invested in Zomato, he suggested raising the stop-loss level to ₹255 to mitigate potential losses.

As of 12:05 PM on Monday, Zomato shares were trading down by 1.60% at ₹273.80, with a market capitalization exceeding ₹2.41 lakh crore.

Disclaimer: The opinions and recommendations expressed in this article reflect those of individual analysts or brokerage firms and do not represent the views of FinBrook. Investors are encouraged to consult certified professionals before making any investment decisions.