Zomato's Share Price Plunge

Shares of Zomato, a leading online food delivery and quick-commerce platform, have seen a dramatic decline of over 30% since reaching record highs in early December 2024. This downturn follows a year where Zomato's shares soared by as much as 145%.

On Tuesday, the company's shares dropped by over 10% after reporting a 57% year-on-year decrease in consolidated net profit for the December quarter. This disappointing financial performance also impacted its competitor, Swiggy, whose shares fell by 8%.

Market Reaction and Analysis

The following day, Zomato's stock continued its decline, falling by 5.1% to Rs 203.80 on the BSE, marking an 18.1% drop over three consecutive trading sessions. This sell-off erased Rs 44,620 crore from Zomato's market value, reducing it to Rs 2,01,885 crore by Wednesday.

Brokerage Responses and Future Outlook

Brokerages have had mixed reactions to Zomato's results. Nomura and Jefferies have both lowered their price targets, citing operational challenges and increased competition in the quick commerce sector. Despite these challenges, some analysts recommend using the current downturn as an opportunity to invest in Zomato, anticipating future growth and expansion.