Despite Zomato debacle, analysts bat for IPO-hopefuls with reasonable valuations, strong financials

Photo: Aniruddha Chowdhury/Mint

While investors have been spooked by the steep fall in food delivery startup Zomato’s stock amid rough market conditions, analysts are suggesting that companies with strong financials and reasonable valuations should sail well.

Zomato debuted at a 53% premium on Indian bourses last year, but its shares have lost about 72% of their value from an all-time peak of Rs 169.10 in November 2021 and are trading about 38% below the issue price of Rs 76 per share.

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