Many new-age stocks like Nykaa, Paytm, Zomato, and Delhivery got listed sometime around the recent bull run. The lock-in period for most of them has come to an end, but it continues to be a big overhang. These stocks have suffered deep cuts in their share prices since their listing, however, brokerages seem to see some light at the end of the tunnel. Here are two new-age stocks in which global brokerages see up to 101% upside.
FSN E-Commerce Ventures (Nykaa)
The shares of Nykaa’s parent FSN E-Commerce Ventures declined on Tuesday to reach a new 52-week low of ₹ 158.40. A total of 63,23,154 shares changed hands by 01:04 PM on the National Stock Exchange (NSE).
The company’s share price is falling amid a slew of bulk deals. Kravis Investment recently sold over 3.67 crore shares of the company at an average price of ₹ 171.00.
However, global brokerage house Morgan Stanley has given an ‘overweight’ rating on the counter with a target price of ₹ 314.00. This translates to an upside of 98.23% as compared to its share price of ₹ 158.40.
Meanwhile, domestic mutual funds like Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, and ICICI Prudential Mutual Fund bought a stake in the company. Moreover, foreign portfolio investors like BofA Securities, BNP Paribas Arbitrage, and Society Generale were the buyers via block deals.
Delhivery Ltd
The shares of the logistics company were trading at ₹ 349.25 apiece at 01:32 PM on Tuesday. A total of 417479 shares changed hands on the NSE.
Brokerage firm Jefferies has assigned a target price of ₹ 700 on the stock. This implies an upside of 100.43% as compared to its current share price.
Jefferies said that the company’s B2C business is seeing a temporary vs structural slowdown, adding that B2B ramp-up will be done with a focus on profitability. It believes that its current stock price has taken into account 6-8% express parcel growth in the next 3-5 years against 25% plus levels in the past.
Written by Simran Bafna
