Zomato shares flat amid reports of winding up 10-minute food delivery business; analyst sees 10% downside

Zomato share price: Shares of Zomato are in focus amid reports that the restaurant aggregator and food delivery company is winding up its 10-minute food delivery service Zomato Instant. The stock traded flat in afternoon deals today, quoting Rs 51 apiece on NSE.

Ravi Singh, VP and head of research, Share India, said that the stock is currently facing selling pressure and may touch the level of 46 in the near term. He recommended investors exiting, adding that the recent turmoil in the company is affecting the stock.

He, however, added that the company has shown slight improvement in its September quarter financial numbers but many concerns still remain for Zomato.

Zomato announced the 10-minute food delivery service called ‘Zomato Instant’ last year. CEO Deepinder Goyal had earlier said, "Nobody in the world has so far delivered hot and fresh food in under 10 minutes at scale, and we were eager to be the first to create this category, globally!"

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The food-delivery company is in news for several reasons in the past few months. The company has seen a series of resignations over the past few months. Earlier this month, co-founder and Chief Technology Officer (CTO) Gunjan Patidar quit the company. In November, Mohit Gupta, Siddhart Jhawar and Rahul Ganjoo had relinquished their positions in the company. While

Gupta was also a Co-founder, Siddhart Jhawar was Vice President of Global Growth Initiatives and Head of Intercity Food Delivery. Ganjoo was Head of New Initiatives. In September, Nitin Savara, who was in the capacity of Chief Financial Officer, had put his papers.  

Meanwhile, Zomato chief executive Deepinder Goyal said the company was looking to hire 800 people across roles such as growth managers, software development engineers and even chiefs of staff to CEOs of Zomato, Hyperpure and Blinkit.

Zomato Share Price History NSE

Zomato shares have tanked 44 per cent in the last 1year. The stock's 52-week range is Rs 114.20 - Rs 40.60. At current market levels, the company has a market cap of Rs 42.43 thousand crore.

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