Zomato stock falls after 4.5 crore shares exchange hands in block deal

Zomato’s stock lost one percent in early trade on January 15 after 4.5 crore shares of the online food aggregator exchanged hands in trade in a block deal. The total transaction value was Rs 622 crore.

Moneycontrol could not immediately identify the buyers and sellers involved in the transaction.

As of 9.17 am, Zomato’s stock price was trading at Rs 138.2, lower by 1.03 percent compared to the previous session’s closing price on the NSE.

On January 11, the global brokerage firm HSBC shared a “buy” rating on the counter and raised the target price to Rs 150, an upside of 9 percent from current levels. Analysts at HSBC said Zomato’s long-term view remains constructive despite a likely muted growth in the calendar year 2024.

“Since Zomato is highly dependent on continued progression of quick commerce business, any slowdown in quick commerce growth will be a key downside risk,” they said.

Analysts at Elara Securities also shared a “buy” call and a target price of Rs 150, saying the company’s higher convenience fees, advertising income, and commission from restaurants were key levers to improve the profitability of the food-delivery business.

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Earlier this month, Zomato introduced a new feature named “daily payouts”, aimed at providing essential support to its expanding network of restaurant partners. This feature is currently available for restaurant partners handling 100 or fewer monthly orders.

The food delivery aggregator said the move comes after it engaged in discussions with various restaurants, recognizing the financial challenges faced by smaller eateries under the traditional weekly payout system.

In the past six months, the stock of the food-delivery platform has surged over 73 percent against an 11 percent rise in the benchmark index Nifty 50.

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