Shares of food aggregator Zomato were in focus on Tuesday after the company said it will soon launch 'Zomato Instant' for delivery of food within 10 minutes.
The stock opened a tad higher at Rs 81.15 against the previous close of Rs 80.35. However, it tanked over 1 per cent to hit an intraday low of Rs 79.30.
With a market capitalisation of Rs 63,605 crore, the shares higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
Currently, the stock is down over 53 per cent below its all-time high. It touched an all-time high of Rs 169.10 on November 16, 2021.
The company will pilot Zomato Instant with four stations in Gurugram from next month onwards. In a blog, Zomato CEO Deepinder Goyal said customers are increasingly demanding "quicker answers to their needs", and that sorting restaurants by fastest delivery time is one of the most used features on the Zomato app.
"Zomato share price is showing bullish formation on momentum indicators like RSI, Oscillators, MACD and MAs on daily basis. It may go upto the levels of 98 - 100 in near term. Investors may take long positions at current levels, said Dr. Ravi Singh, Vice President and Head of Research, ShareIndia.
Manoj Dalmia, founder and Director, Proficient Equities Limited noted that the food delivery major has been trying to make profits by trying different services ranging from app-based pro service to faster deliveries.
"The stock price also has been suffering a lot since listing. Currently, the stock seems to have consolidated in the range of Rs 76-80, from this level a closing above Rs 85 with good volumes might indicate a reversal with short term targets of Rs 89 and Rs 98," he said.
"With opening up of the economy, we might expect good results if the company focuses on cost-cutting and management efficiency," he added.
Recently, Zomato said that its board of directors has approved grant of loan of up to $150 million to Grofers India Private Limited (GIPL) in one or more tranches.
In an exchange filing, Zomato said its board has delegated the authority to the senior management of the company to decide the key terms of the loan and execute the definitive documents at a future date.
"The interest rate for the loan will be 12 per cent p.a. or higher with a tenor of not more than 1 year. This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent of investing up to $400 million cash in quick commerce in India over the next 2 years," it said.
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