Zomato declines 15% in just two days. Here's why | Economic Times

New Delhi: Shares of Zomato have declined about 15 per cent in the last couple of sessions as the mandatory lock-in period for anchor investors ended on Monday, leading to some profit booking. The current sell-off in the broader market has also intensified the pressure on the stock.Shares of Zomato hit the lows of Rs 120.60 on Tuesday. The counter traded at Rs 141.2 on Friday. However, it recovered to Rs 123.90 at 11.15 am. BSE Sensex was trading 121.4 points, or 0.22 per cent, higher at 55,677.20 at the same time.Rahul Sharma, Co-Founder, Equity99, said the loss-making company is enjoying good valuations considering future prospects."Zomato paved the way for a new era as the company gained huge value on listing due to its unique business model, being the first of its kind player and attracting hefty anchor books," he added.The recent selling spree has led to a sharp fall in the market cap of Zomato, which had breached the mark of Rs 1 lakh crore. The current market capitalisation of the stock is hovering around Rs 97,250 crore.Analysts are, however, bullish over the counter in the longer run. There is no change in fundamentals and long-term investors are advised to maintain their positions, said Rahul Sharma of Equity99.Zomato has sparked a fierce debate on the Street over its valuation after rising as much as 70 per cent post its debut on the stock exchanges last month.Brokerage firm ICICI Securities has initiated a bullish coverage on Zomato suggesting that the stock could see as much as 68 per cent upside from current levels over the next 12 months.