The stock tanked 10 per cent on Thursday to hit Rs 90 level. The counter has slumped in six of the last seven sessions amid heavy sell-off in tech stocks in the US and general aversion of investors to stay invested in loss making companies.
From its all time high levels, Zomato is trading down by 48 per cent.
Even as the stock has fallen out of favour on Dalal Street, its management has a surprising take. Goyal in an address to his employees on Monday said: Let me tell you a secret…I have been waiting for a bear market for a long time now – that is when funding dries up for everyone, and companies with the most solid teams and execution rise to the top.
“This is the thing about stock markets and public companies – valuations can swing massively without any change in the fundamentals of the business depending on macro-economic factors like inflation, interest rates etc … we had no control on our valuation going up from $8 billion in the IPO to $17 billion at our peak, and vice versa now…,” he added.
Apart from Zomato, its other tech peers were also trading with cuts. One 97 Communications, which owns Paytm, was down over 1 per cent. Nykaa also dipped over 1 per cent. PB Fintech, which runs Policybazaar, was down 4 per cent. Cartrade Tech, which reported a loss for the third quarter, was down another 6 per cent.
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These stocks have suffered massively in recent months, but this also gives risk-taking investors to pick these names cheaply. Some analysts believe they can be accumulated in small amounts for the long term. But there are skeptics as well, who believe they are not worth buying until their business model matures.
