On November 4, 2024, Zomato’s stock experienced a notable decline of 3.59%, reflecting market volatility in the tech and e-commerce sector. The stock opened at ₹243.6 and closed lower at ₹240.1 during the trading session. Despite an intra-day high of ₹245.35, it also reached a low of ₹240, indicating a day filled with fluctuation for investors.
| Table of Contents |
|---|
| Stock Performance |
| Technical Analysis |
| Market Indicators |
| Fundamental Analysis |
| Shareholding Pattern |
| Peer Comparison |
| Conclusion |
| FAQ |
Stock Performance
Zomato’s stock opened at ₹243.6 and closed at ₹240.1, marking a significant drop of -3.59%. Throughout the trading day, the stock fluctuated, achieving a high of ₹245.35 and a low of ₹240. This movement in stock price exemplifies the current challenges the company is facing in the competitive market.
Technical Analysis
From a technical standpoint, Zomato’s stock is currently trading above its 300-day Simple Moving Average (SMA) at ₹233.30 but is below the shorter-term SMAs across various periods. Specifically, the stock is under the 5-day SMA (₹248.75), 10-day SMA (₹253.77), 20-day SMA (₹263.84), 50-day SMA (₹266.59), and 100-day SMA (₹243.61).
Investors can identify key support at the 300-day SMA while encountering resistance levels at the aforementioned shorter-term SMAs. This presents a mixed technical landscape that may influence trading strategies in the coming days.
Market Indicators
On a broader scale, classic pivot levels indicate resistances for Zomato at ₹246.9, ₹252.05, and ₹255.3 while supporting levels stand at ₹238.5, ₹235.25, and ₹230.1.
Additionally, the overall markets reflected a downtrend with both the Nifty and Sensex falling by -1.73% and -1.63%, respectively, indicating that Zomato’s performance is part of a larger tapestry of market adjustments.
Fundamental Analysis
Looking at Zomato’s financial metrics, the company has a Return on Equity (ROE) of 1.76% and a Return on Assets (ROA) of 1.56%. Additionally, it has a high Price-to-Earnings (P/E) ratio of 288.43 and a Price-to-Book (P/B) ratio of 9.87, signaling expensive valuation relative to earnings and book value.
Despite these challenges, the median 1-year forecasted upside for Zomato stands at 24.95%, with a projected target price of ₹300.00, suggesting a positive outlook among analysts despite current fluctuations.
Shareholding Pattern
On the shareholding front, Zomato currently demonstrates a lack of promoter holding (0.00%) and a minimal mutual fund holding of 2.41%. However, foreign institutional investors (FIIs) command a substantial stake of 47.28%, reflecting significant interest from international investors despite the current stock performance.
Peer Comparison
In the context of peer performance, Zomato finds itself amidst a mixed bag; while some competitors have shown resilience and growth, others echo Zomato’s downtrend. This uncertainty is compounded by a broader market retreat impacting the tech and e-commerce sectors, which are integral to Zomato’s business model.
Conclusion
Zomato’s performance on November 4, 2024, illustrates the tumultuous nature of the current market landscape. The 3.59% drop in share price, combined with mixed technical indicators and broader market influences, hints at a phase of consolidation and uncertainty ahead. Nonetheless, analysts still provide a cautiously optimistic outlook with a forecasted upside, suggesting that long-term investors may find value in current price levels.
FAQ
Q1: What is the current share price of Zomato?
A1: As of November 4, 2024, Zomato’s share price closed at ₹240.1.
Q2: How does Zomato’s technical setup look?
A2: The stock is above the 300-day SMA and below the short-term SMAs, indicating mixed technical signals.
Q3: What is Zomato’s projected 1-year target price?
A3: The median forecast suggests a target price of ₹300.00 with an upside of 24.95% over the next year.
