Zomato shares decline further, down 18pc in early trade

Listed in July 2021, Zomato shares are, however, up more than 20 per cent from its IPO issue price of Rs 76.

At 12.43 p.m. on Monday, it was at Rs 93 per share.

"Zomato is witnessing a vertical fall and slipped below the low made on a listing day which is not a good sign for any counter. There is a risk-off situation across the globe amid fear of tightening by the US Fed where if we look at the trend then there is a sharp sell-off in growth stocks (new edge businesses) especially loss-making companies," said Santosh Meena, Head of Research at Swastika Investmart.

"Many new edge companies came out with unrealistic valuations amid euphoria in the market but we know that only a few companies will survive in the long run and I believe Zomato has the potential to perform in the long run."

The ongoing correction is leading to stock at a reasonable valuation where aggressive investors can use it as a buying opportunity with a long-term view, he added.

The company's market capitalisation fell below the 1 lakh crore-mark last week and on Monday morning it was at Rs 73,085 crore, NSE data showed.