Top Reasons Why Zomato Stock Crashed 10% Today Post-Q3 Results

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Zomato Shares Take a Hit! 📉 Stock Down by 10%!

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Reason 1 - Sharp Decline in Profit Net Profit Falls 57%

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Reason 2 - Blinkit Expansion Costs

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Reason 3 - Slower Growth

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Reason 4 - Rising Employee Costs

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What Experts Say

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Should You Invest?

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Top Reasons Why Zomato Stock Crashed 10% Today Post-Q3 Results

Zomato Shares Take a Hit! 📉 Stock Down by 10%!

– Zomato shares plunged after Q3 FY25 results. – Trading at Rs 218.25 by mid-day. What went wrong?

Reason 1 - Sharp Decline in Profit Net Profit Falls 57%

Reason 2 - Blinkit Expansion Costs

Reason 3 - Slower Growth

Demand Decline – Food delivery Gross Order Value (GOV) grew just 2% QoQ. – Broad slowdown in demand since November 2024.

Reason 4 - Rising Employee Costs

Employee Costs Soar – ESOP charges up 21% QoQ. – Competitive hiring for Blinkit driving higher expenses.

What Experts Say

Mixed Views – Nomura: Target price Rs 290, optimistic on Blinkit. – Bernstein: Retains ‘BUY’, target price Rs 310. – CLSA: Target price Rs 400, sees long-term growth

Should You Invest?

– Short-term: Volatility due to high costs. – Long-term: Blinkit and food delivery growth potential strong. Consider investing with a long-term perspective.