Zomato shares slide over report claiming 50 pc decline in its stock amid competition

New Delhi, May 31 (IANS) Online food aggregator Zomato saw its shares sliding on Friday after global financial services company Macquarie forecasted about a 50 per cent decline in the company’s share price in the next 12 months owing to fierce competition.
Zomato shares fell over 5 per cent, before recovering a bit, and was hovering around Rs 173 a piece.
The global brokerage firm has reiterated its “underperform” rating for Zomato, giving its stock a price target of Rs 96.
According to reports, Macquarie also saw downside to both consensus forecast and margins for Zomato-owned quick e-commerce platform Blinkit.
The report came as Blinkit turned adjusted EBITDA positive in March. Zomato aims to reach 1,000 Blinkit stores by the end of FY25.
Zomato registered a profit of Rs 175 crore in Q4 FY24.
Earlier, brokerage firm Emkay Global had maintained a buy rating on Zomato with a target price of Rs 230 per share.
A Goldman Sachs report also said that Blinkit has become more valuable than Zomato’s core food delivery business.
–IANS
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