Top Reasons Why Zomato Stock Crashed 13% Today Post-Q3 Results
MC Desk | January 21, 2025
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Shares of food tech unicorn Zomato plunged 13% after the food delivery aggregator reported a 57.2% drop in consolidated net profit for the December quarter to Rs 59 crore.
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The scrip of the company fell 13.32% to Rs 207.80 apiece on the NSE.
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In two days, the company's market capitalisation got eroded by Rs 35,175.53 crore to Rs 2,04,876.94 crore.
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Its margins continued to face pressure from increased spending on opening more centres to fulfil orders at its Blinkit quick commerce platform.
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The Gross Order Value (GOV) growth in food delivery business was only 2% higher on a sequential basis.
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Zomato said employee cost is likely to "remain elevated in the near term".
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Jefferies trimmed its price target for Zomato by 7% to Rs 255, retaining a 'hold' rating to bake in the sharp decline in the company’s bottomline.
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