Zomato, the popular food delivery giant, has been facing a tough time in the stock market as its share price experiences a significant decline. As of January 7, 2025, the stock continues to reflect its volatility, with a notable dip in its trading value. Let’s dive into the latest live updates on Zomato's share price, the reasons behind the recent slump, and what investors should know moving forward.
Zomato Share Price Today
On the previous trading day, Zomato's stock opened at Rs 274.35 and closed at Rs 272.70, showing a minor downward shift. The stock's price fluctuated between a high of Rs 274.90 and a low of Rs 262.25 during the session, indicating its ongoing market volatility. Despite these variations, Zomato's market capitalization stands at Rs 247,337.5 crore, reflecting its substantial presence in the market.
However, Zomato's stock is still trading well below its 52-week high of Rs 304.50, though it's still significantly above its low of Rs 121.70. This ongoing volatility makes it evident that the stock is still adjusting to changing market conditions. On the Bombay Stock Exchange (BSE), 1,637,517 shares of Zomato were recorded in volume on the last trading day.
Hourly Price Movement and Trading Strategies
In the most recent hourly update, Zomato's stock price fluctuated between Rs 256.63 and Rs 250.98, creating a range for potential rangebound trading strategies. Traders may be keen to purchase the stock near the support level of Rs 250.98 and sell near the resistance level of Rs 256.63. The following support and resistance levels are critical to watch in the upcoming hours:
- Resistance Levels:
- Resistance 1: Rs 254.45
- Resistance 2: Rs 255.95
- Resistance 3: Rs 257.20
- Support Levels:
- Support 1: Rs 251.70
- Support 2: Rs 250.45
- Support 3: Rs 248.95
Jefferies Downgrades Zomato
To add to Zomato’s woes, Jefferies, a prominent American brokerage firm, has downgraded the stock, further contributing to the declining trend. Jefferies lowered its target price for Zomato to Rs 275 per share from the previous Rs 335, signalling a more cautious outlook for the company. According to the brokerage, the year 2025 will likely be a year of consolidation for Zomato, following a period of rapid growth in 2024.
The downgrade comes amid increasing competition in the food delivery and quick service market, which has only intensified in recent months. Zomato, along with its subsidiary Blinkit, faces tough competition from market leaders like Swiggy and its Swiggy Instamart, as well as Zepto, a new entrant in the space. In addition, e-commerce giants like Flipkart are gearing up to enter the quick commerce market with their new initiative, Flipkart Minutes, adding to the pressure on Zomato.
Competitive Pressures and Profitability Concerns
The rise of fierce competition, especially in the price-sensitive food delivery sector, poses significant challenges to Zomato’s profitability. Jefferies warned that aggressive pricing strategies, including frequent discounts, could squeeze the company's margins and hinder its long-term growth. As Zomato competes with several well-established players, the pricing war in the market is taking a toll on its earnings.
Recent Stock Performance
Zomato's stock performance over the past month reflects a downward trajectory, with the stock falling by 14.53% or Rs 42.90. The shares have also dipped by 9.52% in the past five trading sessions alone. On January 7, the stock fell by an additional 4.70%, losing Rs 12.45 and bringing its value down to Rs 252.40 per share.
This decline in stock value has raised concerns among investors, and the overall sentiment around Zomato remains cautious. While the company continues to be a leader in the food delivery space, its market performance is likely to be influenced by ongoing competition, market conditions, and strategic decisions in the coming months.
Zomato is undoubtedly facing a challenging phase, with the decline in stock price and the downgrade from Jefferies adding to the pressure. However, despite the setbacks, Zomato remains a major player in the online food delivery industry. For investors, it’s important to stay informed about the company's performance, competition, and future growth prospects.
While the current market conditions suggest a period of consolidation, Zomato's ability to navigate through this phase will largely depend on its ability to innovate, manage competition, and maintain profitability. Investors should closely monitor the stock’s price movements, especially around the key support and resistance levels, before making any investment decisions.
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About the Author:
Akanksha Sinha
I'm Akanksha Sinha, an expert in writing sports blogs, news, and various articles for entertainment and more. I bring a unique flair to my work, providing insightful perspectives on the world of sports.
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