Shares of Zomato continued their downwards slide as the shares of the food aggregator decline nearly 20 per cent to hit fresh 52-week low of Rs 91.70 per share in Monday's intraday trade on the BSE. Zomato has corrected nearly 40% or Rs 30 in the last 5 trading sessions on the NSE 

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Shares of Zomato slipped even below lows created on their listing day. Expert is of the view that this correction is leading the food aggregator's share to a reasonable valuation as many new edge companies were listed recently on inflated valuations.  

Shares of food delivery firm Zomato Ltd opened at a 52.6% premium to their initial public offering price in July. 

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At 10.25 am, Zomato stock was trading with Rs 20 decline or 17.58% loss to Rs 93.75 apiece on the BSE on Monday.  

"Zomato has been witnessing a vertical fall and slipped below the low made on a listing day which is not a good sign for any counter. There is a risk-off situation across the globe amid fear of tightening by the US Fed, where if we look at the trend then there is a sharp sell-off in growth stocks (new edge businesses), especially loss-making companies," Santosh Meena, Head of Research, Swastika Investmart Ltd said.  

 He said many new-edge companies came out with unrealistic valuations amid euphoria in the market, but we know that only a few companies will survive in the long run. "I believe Zomato has the potential to perform in the long run. The recent price correction is leading to stock at a reasonable valuation, where aggressive investors can use this correction as a buying opportunity with a long-term view." He added.