Zomato Stock Plummets: ₹44,600 Crore Wiped Out in 3 Days – What Should Investors Do Now?

Zomato Stock Plummets: ₹44,600 Crore Wiped Out in 3 Days – What Should Investors Do Now? Zomato stock has fallen sharply in recent trading sessions, leading to huge losses for investors. The company’s market capitalization has declined by around ₹44,620 crore in the last three days, bringing it down to ₹2,01,885 crore as of January 22, 2025.

Major factors contributing to the decline

Net profit decline:

Zomato reported a consolidated net profit of ₹59 crore in Q3 FY25, down 57% from ₹138 crore in the same period last year. The decline is primarily due to increased investments in expanding its quick-commerce business, especially through Blinkit.

Slow growth in food delivery segment:

The company’s gross order value in the food delivery segment grew by just 2% during the December quarter, which is below market expectations and indicates a slowdown in its core business.

Expert recommendations for investors

Geojit Financial Services:

Maintains a positive outlook with a target price of ₹280. They advise investors to accumulate the stock around ₹210-200 levels and avoid initiating new positions at the current market price.

Wealthmills Securities:

Suggests that investors with high risk tolerance may consider holding the stock, while others may evaluate exiting their positions.

Nomura:

Acknowledges the challenges faced by Zomato, but highlights Blinkit’s potential to regain a top-2 position in the quick-commerce market. They have adjusted the target price from ₹320 to ₹290.

Jefferies:

Expresses confidence in Blinkit’s performance and the management’s goal of doubling the store count to 2,000 by December 2025. They have revised the target price from ₹275 to ₹255.

Results

While Zomato’s recent financial performance has led to a significant drop in its share price, many analysts remain optimistic about its long-term prospects, especially in the quick-commerce sector. Investors are advised to assess their risk tolerance and investment horizon when making a decision about this stock.