Zomato share price: Stock trades under pressure as Street sentiment weak on food delivery platform - here is why

Zomato share price: Shares of online food delivery platform Zomato are in focus since a series of reignitions and news about layoff started doing the rounds. The stock traded in a range on Tuesday, November 22, with Steet giving a thumbs down to a series of high profile exits this month.

The stock opened at Rs 64.90 on NSE and has shown a zig-zag path. The stock quoted Rs 64.15, declining 0.23 per cent at 11:30 AM.

Last week, Zomato co-founder Mohit Gupta resigned from the company after four-and-a-half years, becoming third person to quit in a month. Before Gupta, the two persons who quit Zomato were Rahul Ganjoo, Head of New Initiatives and Siddharth Jhawar, Head of Intercity Legends.

Stock market investors do not like senior management or high profit exits that cause disruptions in the business.

Sentiment around the stock further turned weak after company announced to layoff 3 per cent of its workforce. Around 3800 employees are likely to lose their jobs. The brokerage said that layoffs will be based on regular performance of employees. 

Credit Suisse in its report gave an 'outperform' rating on the counter and has revised the price target to Rs 100. 

"Performance-based headcount reduction is in line with the profitable growth strategy of the company. Zomato share has remained stable," it said.

Zomato shares have tanked almost 55 per cent in 2022 so far. In perspective, Zomato stock which was available for Rs 141.35 apiece on January 3 is now available at Rs 64. The company has a current market cap of Rs 53.60 thousand crore, according to NSE website.

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