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Zomato- Sell or Hold? | What Should Investors Do?

Zomato- Sell or Hold? | What Should Investors Do?

Published on 26 July 2021 Views 40 Comments 0

Food Delivery Giant Zomato share analysis witnessed a bumper listing at NSE and BSE and delivered more than 53% premium over the issue price on a listing day on Friday 23rd July 2021. So What should Investor do with Zomato Stock- Should Investor Sell or Hold the allotted shares of Zomato? Get a quick note on the Investor’s Thought process in this blog.

Introduction: Zomato Analysis

Zomato, a leading food delivery giant became the first unicorn company to get a listing in the Indian Stock Exchange on NSE and BSE. The stock listed at Rs. 115 and Rs. 52.63 on BSE and NSE respectively, witnessing a listing day gain of 51% on BSE and 53% on NSE. With the stellar listing, the market capitalization of the company stood at Rs. 98,732 Cr., ahead of biggies like Tata Motors, M&M, Coal India, and even Info Edge, the parent company of Zomato.

What Should Investors Do? Zomato Fundamental Analysis

  • If any person has applied for the Zomato Stock in the IPO and has successful received a lot, then firstly he/she should understand their primary thought process of applying in the Zomato IPO-whether it was for long-term or for just a listing gain.

  • If one has invested from the viewpoint of long-term and after successfully studying the business, then he/she should remain invested as this story of listing of Start-Up companies is just a start, and many more such start-up companies might list in the future.

  • Further, if one has applied for listing gain and has received a lot, then he/she should exit as their prime objective of earning listing day gain from the IPO has been achieved.

  • If there is a case of some connection of an individual with the stock after witnessing its listing day gain and an investor wants to remain invested for the longer-term but also wants to enjoy the listing day premium, then he/she should sell their shares worth their principal value and should keep the profit amount remain invested. For Ex. If one has invested Rs. 100 in the Zomato IPO, and after listing this invested value has now shot up to Rs. 153 (Rs. 100 + Rs. 53 (Premium)), then one should sell the shares worth Rs. 100 and keep Rs. 53 remain invested.

Conclusion: Zomato Analytics

If an individual has invested in Zomato IPO for listing gain, then one should immediately exit. Or if an individual feels Zomato Stock to be a long-term story and believes in the business then he/she should stay invested in the stock. One should follow a holistic approach. An investor who is sticking to this stock and is staying for long-term should review the performance of the company, follow up its management commentary, and another required trait of being an investor. Do follow asset allocation with proper discipline. Consult a financial advisor before making any investment decision.

Food Delivery Giant Zomato witnessed a bumper listing at NSE and BSE and delivered more than 53% premium over the issue price on a listing day on Friday 23rd July 2021. So What should Investor do with Zomato Stock- Should Investor Sell or Hold the allotted shares of Zomato? Get a quick note on the Investor’s Thought process in this blog.

Introduction:

Zomato, a leading food delivery giant became the first unicorn company to get a listing in the Indian Stock Exchange on NSE and BSE. The stock listed at Rs. 115 and Rs. 52.63 on BSE and NSE respectively, witnessing listing day gain of 51% on BSE and 53% on NSE. With the stellar listing, the market capitalization of the company stood at Rs. 98,732 Cr., ahead of biggies like Tata Motors, M&M, Coal India, and even Info Edge, the parent company of Zomato.

What Should Investors Do?

  • If any person has applied for the Zomato Stock in the IPO and has successful received a lot, then firstly he/she should understand their primary thought process of applying in the Zomato IPO-whether it was for long-term or for just a listing gain.
  • If one has invested from the viewpoint of long-term and after successfully studying the business, then he/she should remain invested as this story of listing of Start-Up companies is just a start, and many more such start-up companies might list in the future.
  • Further, if one has applied for listing gain and has received a lot, then he/she should exit as their prime objective of earning listing day gain from the IPO has been achieved.
  • If there is a case of some connection of an individual with the stock after witnessing its listing day gain and an investor wants to remain invested for the longer-term but also wants to enjoy the listing day premium, then he/she should sell their shares worth their principal value and should keep the profit amount remain invested. For Ex. If one has invested Rs. 100 in the Zomato IPO, and after listing this invested value has now shot up to Rs. 153 (Rs. 100 + Rs. 53 (Premium)), then one should sell the shares worth Rs. 100 and keep Rs. 53 remain invested.

 

Conclusion:

If an individual has invested in Zomato IPO for listing gain, then one should immediately exit. Or if an individual feels Zomato Stock to be a long-term story and believes in the business then he/she should stay invested in the stock. One should follow a holistic approach. An investor who is sticking to this stock and is staying for long-term should review the performance of the company, follow up its management commentary, and another required trait of being an investor. Do follow asset allocation with proper discipline. Consult a financial advisor before making any investment decision.

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