Is Future of Zomato Certain?
Zomato is one of the attractive stock amongst the youngsters, specifically if i talk about myself, i have invested 500 shares with Average buy price of 120 but the current MTP is 61 odd rupees so the stock has declined more than 50% which is very disheartening for enthusiast investor, there is one option to match up the price by buying more stocks and bring the average to 80 (ex-buy 500). But this fall seems to be constant and in long term how long i have to hold the stocks is an open question and what extent i am going to average out.
If i look at the current market scenario the aggregator stated that it would be shutting down its operations in Lebanon, its sole international business following its exit from UAE, last year but The aggregator also announced plans to invest a net $50 million cash plus the value of the Fitso business for a cumulative shareholding worth $100 million in Curefit. This amount to a total shareholding of 6.4 per cent. "This will help us potentially explore cross-selling benefits between Zomato and Curefit, as we see food and health becoming the same side of the coin in the long term," the company stated in its blog post
If i talk about my behavior of ordering food is still Zomato which keeps me motivated to hold the stock and even to average out the price. Comment what you guys think on the future of Zomato.