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Should you buy, sell or hold Zomato shares now? Here's what brokerages say

Should you buy, sell or hold Zomato shares now? Here's what brokerages say

Should you buy, sell or hold Zomato shares now? Here's what brokerages say
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By CNBCTV18.com Feb 11, 2022 4:38:29 PM IST (Updated)

Zomato share price: Zomato shares tumbled on Friday, a day after the food aggregator reported its financial results for the December quarter. Here's what brokerages Morgan Stanley, Credit Suisse and BofA-ML say.

Zomato shares plunged on Friday, a day after the food aggregator reported its financial results for the October-December period. The Zomato stock finished the day down 6.1 percent at Rs 88.8 apiece on BSE, having fallen as much as 9.2 percent during the session.

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After the market hours on Thursday, Zomato reported a net loss of Rs 67.2 crore for the October-December quarter, as against a net loss of Rs 352.6 crore for the corresponding period a year ago. The narrowing of net loss was on account of an exceptional gain from sale of assets.
Its quarterly revenue increased to Rs 1,112 crore for the third quarter of the current financial year, from Rs 609.4 crore in the year-ago period, according to a regulatory filing.
Should but, sell or hold Zomato shares after the company's Q3 results? Here's what brokerages say:
Bank of America-Merrill Lynch
The brokerage maintained a 'buy' rating on Zomato with a target price of Rs 115. The company's quarterly numbers were disappointing with a miss on the revenue front, and its costs remain elevated, according to BofA-ML.
Credit Suisse
The brokerage retained an 'overweight' call on Zomato with a target price of Rs 120.
The company's Q3 performance was weak as growth in its gross order value (GOV) slowed down, according to Credit Suisse. The brokerage lowered its target multiple on correction in the EV/GMV multiples of global companies.
Morgan Stanley
The brokerage continued with an 'overweight' rating for the stock with a target price of Rs 150. Lack of growth in monthly transacting users (MTU) and a slowdown in GOV offset positives from lower burn rates, according to Morgan Stanley.
The brokerage expects the stock to remain rangebound in the near term.
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