![Zomato shares slide over report claiming 50 percent decline in its stock amid competition](http://media.assettype.com/sentinelassam-english%2F2024-06%2F767fcc0d-107a-4f9c-9e01-d94e40c5ce30%2FZomato.jpg?w=480&auto=format%2Ccompress&fit=max)
New Delhi: Online food aggregator Zomato saw its shares sliding on Friday after global financial services company Macquarie forecasted about a 50 per cent decline in the company’s share price in the next 12 months owing to fierce competition. Zomato shares fell over 5 per cent, before recovering a bit, and was hovering around Rs 173 a piece.
The global brokerage firm has reiterated its “underperform” rating for Zomato, giving its stock a price target of Rs 96.
According to reports, Macquarie also saw downside to both consensus forecast and margins for Zomato-owned quick e-commerce platform Blinkit.
The report came as Blinkit turned adjusted EBITDA positive in March. Zomato aims to reach 1,000 Blinkit stores by the end of FY25. Zomato registered a profit of Rs 175 crore in Q4 FY24. Earlier, brokerage firm Emkay Global had maintained a buy rating on Zomato with a target price of Rs 230 per share. A Goldman Sachs report also said that Blinkit has become more valuable than Zomato’s core food delivery business. (IANS)
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