Zomato Stock Struggles: Is It Overvalued or a Hidden Opportunity? 🍽️📉
Since Zomato’s inclusion in the BSE Sensex, investors have faced disappointment. The stock has plunged 30% from its all-time high above ₹300, raising concerns about its valuation and future growth.
🔹 A Rollercoaster Ride for Investors
- Early investors who bought at 2022-23 lows may still see gains.
- IPO investors, however, are experiencing déjà vu—a reminder of the 75% crash from ₹160 to ₹40 between 2021-2022 before a strong rebound.
- Now, the stock is showing renewed weakness, sparking fresh concerns.
🔹 Is Zomato Overvalued?
- The company currently trades at a sky-high PE ratio of 315, making it one of the most expensive stocks in the market.
- This valuation assumes extraordinary future profit growth—but is that realistic?
🔹 The Quick Commerce Challenge
- Zomato’s Blinkit acquisition has positioned it in the fast-growing quick commerce space.
- However, rising competition from new and existing players is leading to aggressive discounting, impacting profitability.
- Investors are now questioning how Zomato can sustain its market share while maintaining financial stability.
💡 What’s the Fair Value of Zomato’s Stock?
With increasing competition and valuation concerns, is Zomato truly worth ₹200-₹300 per share, or is the real value much lower? The coming months will be crucial in determining if the stock can justify its premium pricing.
👉 What’s your take? Is Zomato’s growth story still intact, or is it time to reconsider?
