Zomato Shares Show Signs Of Recovery: Is Q3 Related Sell-Off Over?

Shares of Zomato were back in the green today after a three-session losing streak that started after it posted its Q3 results. 

What Happened: The food delivery giant released its Q3FY23 results last week, which saw the company's net loss widen. Since then the company shares have dropped around 6%. 

However, the majority of analysts have remained positive on the stock. Global analysts Jefferies and Morgan Stanley have remained positive on the food tech company and see over 50% upside with price targets of ₹100 and ₹82 respectively. 

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Domestic Brokerage firm ICICI Securities also said that the food delivery giant’s underlying operating metrics showed sustained improvement, as they upgraded the rating for the stock from ‘hold’ to ‘buy’.

The company's CEO Deepinder Goyal also came out yesterday to address the attrition concerns surrounding the company after high-profile exits. Goyal looked to dissolve the chatter around the culture at Zomato stating that the company has over 200 people who have been in the organisation for 7 years or longer.

"More than 50% of the top 50 people at Zomato are more than 7 years old at the company," the 39-year-old added. 

The markets also seem to be reacting positively to news that the company has reportedly decided to cap password sharing. Commenting on the reports a Zomato spokesperson told Benzinga, that password sharing for Zomato accounts is already capped. One can only be logged on to one account on two devices at a time, as already mentioned in the terms and conditions of ‘Gold' – the company's loyalty programme, the spokesperson added. 

Price Action: Zomato shares were up 0.20% to trade at ₹50.50 in the early hours of trade on Wednesday.

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