Big loss to investors in Zomato, stock fell by 14 percent in two days, know what is the reason
Zomato stock fell 14% in 2 days
In November last year, the stock had reached its year’s high of 169, currently the stock is at 60 levels. That is, the stock has fallen 64 percent from its highest level.
The stock of Zomato has seen a sharp decline for the second consecutive day today. The stock has fallen by 14 percent in 2 days. On Tuesday itself, the stock closed with a fall of more than 8 percent. This fall in the stock has been seen after the blinkit deal. Zomato (Zomato) has announced to buy Blinkit for about Rs 4400 crore. After this deal, many questions arose among the investors regarding the profitability of the company. because of stock ,Stock) has seen a sharp sell-off. The stock currently investors (Investor) is proving to be a loss deal. In November last year, the stock had reached its year’s high of 169, currently the stock is at 60 levels. That is, the stock has fallen 64 percent from its highest level.
Where did the stock reach today?
In Tuesday’s trade, the stock of Zomato closed at 60.35, down 8.35 percent on the BSE. The stock had fallen to the level of 59.8 during trading. On 24th the stock closed at 70.35 level. The year’s high of the stock is 169, while the year’s low is 50.35. That is, the stock is down 64 percent from its year’s high. At the same time, 20 percent is up from the low level of the year. With today’s fall, the total market cap of the company has come down below the 50 thousand crore mark.
Stocks down since blinkit deal
The recent fall in Zomato’s stock has been seen since the Blinkit deal. Recently, the company has announced to buy Startup Blinkit, which provides the service of delivering everyday goods to the house. The company has done this deal for Rs 4447 crore. Blinkit was formerly known as Grofers. Zomato already held a 9 percent stake in Blinkit. After this deal, investors started selling in the stock. In fact, market experts have considered this deal expensive. Whereas, Blinkit is still trying to make a profit. On the other hand, market experts believe that the company will have to invest about $ 250 million more in Blinkit. With this, Zomato’s total investment in Blinkit will reach over $1 billion, according to Kotak Institutional Equity. At the same time, the information is assuming that there will be a lot of competition in Quick Commerce in the coming time, in such a situation it may take time to get the return of investment. For this reason, the stock has seen a decline.
