Shares of Zomato traded on a new 52-week low value as the stocks of food aggregator dropped more than 9 per cent on the BSE on Friday. Zomato stocks touched day's low of Rs 112.55 per share in the afternoon trade amid tax imposed on the food aggregators.  

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The shares ended 9.18% lower or declined Rs 11.50 to 113.75 per share on the BSE on Friday's closing 

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Earlier, Food aggregators like Swiggy and Zomato were asked to collect and deposit tax at 5 per cent rate starting January 1, 2022, a move which was aimed at widening the tax base as food vendors who are currently outside the GST threshold will become liable to GST when provided through these online platforms. 

Speaking about the correction in Zomato share price, Ravi Singhal, Vice Chairman at GCL Securities, said the fact that costs have escalated due to the tax imposed on the aggregator and also that the lockdown is also not currently happening, shares appear weak. "We advise investors to set a target of Rs 90 and a stop loss of Rs 127," said the market expert on Zomato share price touching new low.  

Shares of Zomato have corrected nearly 15 er cent on the NSE from the price of Rs 133.45 per share on the NSE on January 17.  

Ravi Singh, Vice President & Head of Research, Share India Securities, alos said technical setup in Zomato is in bearish formation on intraday and daily basis, which may drag the stock up to Rs 112-110 levels in near term. "The valuations of the company are also not supporting the growth. Zomato is facing a tough competition by Swiggy on many terms, mainly having a thinner Metro restaurant network and density vs. Swiggy. We recommend investors to maintain the sell position in the stock."