Stating that Zomato’s ESOP cost is no longer a one off post approval of new policy, domestic brokerage firm JM Financial cut down the company's target price to Rs 230, from an earlier Rs 250.
The formulation of a new policy at Zomato suggests that ESOP costs should be treated as a regular business expense as they are likely to recur in future and hence the domestic brokerage firm has changed its valuation methodology to better capture the impact of ESOP cost.
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