- Date : 09/06/2023
- Read: 3 mins
In the one year after the IPO, Zomato’s scrip has been on a roller-coaster ride. However, in recent months, the stock was rallying and has now posted a new 52-week high on the back of a strong quarterly performance.
- On 9th June 2023, Zomato’s scrip surpassed its IPO price to reach a new 52-week high in intraday trade
- The share price reached ₹77.35 after a steady rally
- After the IPO, when the shares opened at a considerable premium, the shares witnessed a roller-coaster ride
Zomato had a bumper IPO opening in July 2021 as it commanded a 52.6% premium in its share price on the opening date. The shares performed brilliantly post-listing reaching ₹160.3 by November 2021.
However, things went downhill from there as the share price tumbled 74% to reach ₹41.65 after a span of just eight months. Investors were making a loss but the tables turned once again as the company improved its performance.
In about a year, Zomato has reduced its losses and turned them around to profits. In fact, the company posted an impressive financial result for the last quarter of the financial year 2022-23. The contribution margins delivered more-than-expected growth putting the scrip back in the limelight.
Recent Performance of Zomato Shares
Over the last month, Zomato’s scrip grew by 27% on the back of improved operational performance. The stock was trading at the highest level since June 2022. Moreover, from the level of ₹40.55 recorded in July 2022, the scrip has recovered 91% to reach the ₹76 mark.
In the intraday trading session on 9th June 2023, Zomato’s stock hit a new 52-week high level to stand at ₹77.35, exceeding its IPO rate of ₹76.
What Investors Should Know?
Zomato is an established and leading name in the dining and food delivery segment. With limited competitors, the company can grow further provided it improves its performance and margins.
If you are an existing investor, you can profit from the rally in Zomato’s scrip. If you had bought the stock at a lower rate, you can sell and book your profits. For those who are holding the stocks since the IPO, there’s more to come. Currently, the stock price might not fetch the right price compared to your IPO investment. Hold on to your shares and wait for further rallies to capitalise on the company’s growth.
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The bottom line
Having a long-term investment horizon is always recommended when you are trading in stocks. As Zomato is improving its metrics, you can invest in its shares and hold them over the long-term to generate good returns.
Keep your risk appetite and investment needs in mind when investing or redeeming your holdings so that you make an informed decision.
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.