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Zaggle ended at ₹160.48 on Monday, down 20%, while the Nifty 50 and Nifty 500 dropped 0.3% and 0.1%, respectively.
"The sharp fall today is largely a delayed reaction. Zaggle announced its June quarter results after Friday's close, so Monday was the first chance for the market to respond, and the response was severe," said Raj Gaikar, research analyst, Samco Securities.
Gaikar said the company's profit shrank even as revenue grew on a yearly basis, mainly because costs from a recent acquisition landed before the revenue it will bring.
"The deeper concern is not this quarter. For the past few years, Zaggle's reported profits have not been matched by actual cash generation," he said.
Read more:Investors pile into small, mid-caps as earnings momentum improves
"When Zaggle first listed, management previously focused on profitable growth which is now entering into a phase of transformation through consolidation. This transition has increased costs, as acquisition-related expenses, rising employee costs, and new operating charges have led to a significant dip in its earnings before interest, taxes, depreciation, and amortization (EBITDA)," said Arijit Malakar, equity research analyst, Ashika Stock Broking.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price