Zomato shares slip over 4% in early trade, here’s why

Shares of Zomato fell over 4% today as the online food delivery firm said its co-founder Mohit Gupta has resigned from the company. Sentiment around the stock also turned weak amid reports that the company plans to lay off 4% of its workforce to cut costs and turn profitable.

Zomato stock plunged 4.31 per cent to Rs 64.25 on BSE. The stock opened lowered at Rs 66.30  against the previous close of Rs 67.15. Shares of Zomato were trading higher than the 20 day, 50 day and 100 day moving averages but lower than 5 day and 200 day moving averages.

However, the stock has lost 57.84 per cent in one year and declined 52.56 per cent since the beginning of this year. Market cap of the fell to Rs 55,115 crore on BSE. 

Total 31.18 lakh shares changed hands amounting to a turnover of Rs 20.33 crore on BSE. The share hit a 52-week high of Rs 161.25 on November 25, 2021 and a 52-week low of Rs 40.55 on July 27, 2022.

Gupta had joined Zomato four-and-a-half years ago and was elevated to co-founder in 2020 from the position of CEO of its food delivery business.  Of late. Zomato has seen multiple top-level exits from the company.

They include Rahul Ganjoo, who was the new initiatives head and Siddharth Jhawar vice president of global growth. The company’s deputy chief financial officer, Nitin Savara, also stepped down in August.

Zomato has also announced that it would discontinue its food delivery operations in the United Arab Emirates. “We would like to update the exchange that the Company will discontinue rendering of services to Talabat in the UAE w.e.f. November 24, 2022,” the company said.

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