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When Zomato Share will Cross Rs.100 will you invest says Jefferies going up soon

Zomato Share Price: After the end of the lockdown period on July 25, Zomato's shares closed down 11%

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Zomato Share Price: Food delivery company Zomato’s shares continue to fall. The company’s lock-in period ended on Monday, July 25, due to which the shares continued to fall sharply. On Tuesday, July 26, Zomato shares are trading down 7.25% at Rs 44.15 in early trading at 10 am. Earlier on Monday, Zomato shares closed down 11%.

What should investors do?

Jefferies has set a target price of Rs 100 for Zomato’s shares while giving a buy rating. The brokerage firm says that there is a great opportunity to buy because of the bad sentiments. Jefferies expects that the profitability of this segment will improve, the industry structure will be better than before and the company will be able to save cash in the coming days.

Shares of Zomato hit its all-time low of Rs 46, down nearly 14 per cent on July 25. In fact, due to the end of the lock-in period for pre-IPO shareholders (promoters, employees and other institutions), there has been a strong sell-off in the stock.

According to market experts, the lock-in period of about 613 crore or 78 percent shares of online food delivery company Zomato has ended on July 23. The public issue of Zomato was listed on BSE and NSE on July 23, 2021.

The rule of lock-in period is applicable to companies which do not have promoters. Zomato is also one of such companies in which promoter holdings are zero. According to the rules, in a company that does not have promoters, the equity share capital held by the company before the IPO is locked for one year from the allotment of shares. During this time, these shareholders cannot sell a single share of their shares.

Jeffries gave a target of Rs 100

The brokerage house has a buy call on Zomato share with a target price of Rs 100. On July 26, the stock opened at Rs 46.60 on BSE and touched a low of Rs 43.70 in intraday. At the same time, 5.50 percent weakening at 11 am is trading at Rs 45.

Why are there buying opportunities in shares?

According to analysts at Jeffries, due to poor sentiments, there has been a buying opportunity in the stock. He is expected to work towards improving profitability in the segment, adapting to the industry structure and saving the company’s cash.

Analysts attributed the Blinkit deal to the FOMO factor or Zomato’s intention to protect the food delivery market. He said that this will increase the pressure on cash in the medium term and will increase the concern of investors.


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