Zomato shares fall over 6% amid large block deal

Shares of food delivery platform Zomato fell over 6% to Rs 101.2 in Thursday's trade on BSE amid reports of a block deal executed on the counter.
As per reports, on Thursday, 42.4 lakh equity shares of Zomato changed hands in a block deal. The buyers and sellers in the deal are not known.

According to the latest shareholding pattern available on Trendlyne, 54.7% of the company's shareholding is with the FIIs, 10.6% with mutual funds, and 3.4% with institutions.


At 11.41 a.m., the stock was trading 5.6% lower at Rs 102.1 over its last day's closing price of Rs 108.1 apiece. However, the stock has surged over 70% year-to-date, while it rallied over 75% in the past six months. Meanwhile, the stock has declined nearly 24% in the past two years.

In Q1 FY24, the firm turned profitable. Zomato reported a consolidated net profit of Rs 2 crore for the quarter ended June 2023 against a loss of Rs 186 crore in the corresponding quarter of the last financial year. The company also reported a loss of Rs 189 crore in the quarter ended March.

Meanwhile, the revenue from operations for the reporting quarter stood at Rs 2,416 crore, which was up nearly 71% YoY against Rs 1,414 crore reported by the company in the year-ago period.

As per Trendlyne data, the target price of the stock is Rs 110, an upside potential of 7% from the current market prices. The consensus recommendation from 27 analysts for the stock is a 'Buy'.

Technically, the stock's day RSI (14) is at 55.3. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 3.5, above its Center Line, but below the signal line.

Shares of Zomato are also trading higher than the 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs), while lower than 5-day, 10-day, 20-day, and 30-day SMAs.

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