Zomato declines on profit selling

Zomato tumbled 7.98% to Rs 61.70 on profit booking after rising in the past seven trading sessions.

Shares of the food chain platform surged 23.03% in the past seven sessions to end at Rs 67.05 yesterday, from its recent closing low of Rs 54.50 on 5 August 2022.

The stock had outperformed the market over the past one month, up 14.47% compared with 8.91% rise in the Sensex.

The scrip had also underperformed the market in past one year, down 55.69% as against Sensex's 7.81% rise.

On the BSE, 126.64 lakh shares were traded in the counter so far compared with average daily volumes of 160.42 lakh shares in the past two weeks. The stock hit a high of Rs 68.25 and a low of Rs 60.30 so far during the day.

The stock hit a 52-week high of Rs 169.1 on 16 November 2021. The stock hit a 52-week low of Rs 40.55 on 27 July 2022.

On the technical front, the stock's daily RSI (relative strength index) stood at 58.170. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.

The online food delivery platform reported a consolidated net loss of Rs 186 crore in Q1 June 2022, as against net loss of Rs 360.70 crore in Q1 June 2021. Revenue from operations stood at Rs 1,413.9 crore in Q1 June 2022, up 67.44% from Rs 844.4 crore reported in Q1 June 2021.

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