The stock of Zomato continues to fluctuate this week. Shares fell up to 5 per cent in intraday trading after the probe was ordered on Tuesday. The company’s shares have been rocking investors for the past three months. On an annualized basis, it is down 41 per cent. According to experts, it is not clear where the company has invested the money raised from the market. Zomato’s intraday CMP was trading at Rs 84 on Wednesday.
Company’s direction not clear
According to Saurabh Jain of brokerage house SMC Global, investors are not able to understand in which direction the company is heading. Sometimes she starts talking about food delivery within minutes and sometimes about the acquisition of another company. This confuses investors. They are not clearing the roadmap of the company.
The second reason is that given the boom in the market, investors are turning towards growth companies. His focus is on real estate, banking, capital goods like L&T and hospitality sectors like Cummins, Indian Hotels. Shares of these sectors are rising as soon as the market opens after the Kovid epidemic.
Shares will rise after some time
According to Capitalvia Global Research, the company’s stock will rise. The company is looking for new opportunities to increase its revenue. Due to this, its shares are likely to rise after some time. Let us tell you that the Competition Commission of India (CCI) has constituted an inquiry against Zomato and Swiggy. The restaurant partner, wrong price and other aspects are being investigated.
Zomato said that the commission has not found anything significant in the preliminary investigation. Zomato is currently trading at Rs 80 per share. According to experts, after touching the high level of Rs 169, it has fallen by 55 percent. It will technically get support of around Rs 78. Protests are being seen around Rs.89.