Zomato’s share price is a focal point for many investors today, September 6, 2024. Understanding how the share price changed today, along with insights from technical and fundamental analysis, can provide valuable context for potential investors.
Main Points
- 1 Share Price Changed Today
- 2 Technical Analysis of Zomato share
- 3 Important Levels
- 4 Fundamental Analysis of Zomato share
- 5 Key Financial Ratios
- 6 Factors Influencing Zomato Share Price
- 7 Predicted Price Action for Tomorrow
- 8 Analysts Saying About Zomato share
- 9 Future Prospects of Zomato share
- 10 Today Update News of Zomato share
As of the latest updates, Zomato’s share price opened at ₹254.85 and experienced fluctuations throughout the day. The stock has shown a slight decline, closing at ₹242.85, down by 1.96% from the previous day’s close of ₹247.70. This movement reflects the stock’s volatility and the current market sentiment.
Technical analysis reveals that Zomato’s stock is currently trading below key resistance levels. The closing price of ₹242.85 is below the important support level of ₹258.7. Analysts suggest that as long as the price remains below this level, the stock may continue to face downward pressure.
Important Levels
| Level | Price (₹) |
|---|---|
| Support Level | 230 |
| Resistance Level | 258.7 |
| 52 Week High | 280.90 |
| 52 Week Low | 96.50 |
Zomato’s market capitalization stands at approximately ₹215,113 crore. The company’s price-to-earnings (P/E) ratio is notably high at 356.09, which indicates that investors are currently paying a premium for each unit of earnings. The earnings per share (EPS) is ₹0.68, and the company has not declared any dividends, which may affect investor sentiment.
Key Financial Ratios
| Ratio | Value |
|---|---|
| P/E Ratio | 356.09 |
| EPS (TTM) | ₹0.68 |
| Market Cap | ₹215,113 crore |
| PB Ratio | 10.71 |
| Dividend Yield | 0.00% |
Several factors influence Zomato’s share price, including:
- Market Sentiment: Negative sentiment in the broader market has impacted Zomato’s stock performance. The Nifty index has also faced declines, which often correlates with individual stock movements.
- Earnings Reports: Zomato’s financial performance in recent quarters has been a topic of discussion among analysts. The company reported a profit of ₹21.94 crore in the last fiscal year, which may not be enough to justify the current valuation.
- Competition: The competitive landscape in the food delivery and quick commerce sectors is intensifying. Zomato faces competition from other players, which can affect its market share and profitability.
Predicted Price Action for Tomorrow
Looking ahead, analysts predict that Zomato’s share price may continue its downward trend unless it can break through the resistance level of ₹258.7. The predicted price action for tomorrow suggests potential targets of ₹255.1 and ₹258.21 on the upside, with downside targets around ₹236.7 and ₹212.84.
Analysts remain divided on Zomato’s future. Some suggest that the stock is undervalued given its growth potential, while others caution against its high valuation metrics. The consensus among analysts is to maintain a cautious approach, with a majority recommending a “hold” strategy until clearer trends emerge.
Zomato’s future prospects hinge on several key factors:
- Expansion Plans: The company is focusing on expanding its services and improving its logistics to enhance customer experience. Successful execution of these plans could lead to revenue growth.
- Market Trends: As more consumers shift to online food delivery, Zomato could benefit from increased demand. However, this will depend on how well it can compete with rivals.
- Technological Advancements: Investing in technology to streamline operations and improve user experience can provide Zomato with a competitive edge.
In today’s update, Zomato’s stock faced challenges as broader market trends weighed heavily on investor sentiment. The Nifty index’s fluctuations have also contributed to the stock’s performance. Investors are advised to keep an eye on market trends and Zomato’s upcoming earnings reports for further insights.
Note: This article is written for educational purposes, Local Haryana does not provide buying and selling of any kind of stock
