Best Multibagger Stocks to Buy: Shares of food delivery stock Zomato have shown good recovery in recent months. Zomato was also one of the new-age companies that entered the stock market about 2 years ago, which created a lot of buzz in the market with its IPO, but later bankrupted the investors. However, Zomato has registered a great recovery in recent months.
IPO got bumper response
Food delivery company Zomato brought its IPO in July 2021. The company’s IPO also got a great response. Zomato’s stock was listed at Rs 116 on the NSE, a jump of about 53 per cent compared to the issue price of Rs 76. However, after that a period of decline started in the shares of Zomato.
Still not reached that level
At that time shares of all new-age tech companies including Zomato, Paytm, Nykaa etc. They were falling heavily and were wasting the money of their investors. After the listing, Zomato’s mcap had crossed Rs 1 lakh crore. The phase of decline can be gauged from the fact that still the company’s stock and its value have not reached the opening level. Currently, Zomato’s market capitalization is Rs 75,300 crore.
More than double in 5 months
Zomato’s stock closed at Rs 89.25 on Friday, down nearly 2 per cent. In the last 5 days, its price has fallen by about 5 percent. If we look at it in terms of one month, then the stock is up by more than 11 percent, whereas in the last 6 months, the price has gone up by about 65 percent. At one point in March, the stock fell to Rs 44. In this way, Zomato shares have recovered more than 100% in the last 5 months and have more than doubled from the low level.
Share likely to remain volatile
< p> Brokerage firm JM Financial believes that Zomato shares may remain volatile in the coming days. According to JM Financial, there is speculation in the market that some of Zomato’s pre-IPO investors may exit, including venture capital, private equity and Chinese investors. Although it cannot be said clearly as of now when they will exit, but due to speculations there can be turmoil in the price.
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