India’s new-age companies suffered heavy drubbing after their listing. However, these stocks have had their best quarter since listing and it seems like investors and analysts have warmed up to these stocks.
Shares of these stocks gained anywhere between 15 to 52 percent since the beginning of the financial year 2023-24. Nykaa (up 15.90 percent), Zomato (up 51.96 percent), One 97 Communications or Paytm (up 33.55 percent), Delhivery (up 19.46 percent), Car Trade (up 37.26 percent), PB Fintech (up 15.00 percent) and CE Info Systems or MapMyIndia (up 34.94 percent), seem to have slipped into the green zone.
Experts say that there is hope for many of these stocks in the near future and these stocks are available for a discount after they suffered a steep fall from their elevated IPO price. However, for those investors who are holding these shares since their respective initial public offerings (IPOs), there are no gains on the table.
For example, One 97 Communications (Paytm) stooped to an all-time low of ₹ 438.35 per share earlier this year, against its IPO price of ₹ 2150. Since then, it has gained nearly 100 percent and settled at ₹ 853.00 on Wednesday. On a year-to-date basis, its share price is up 60.31 percent. The company turned operationally profitable in the December quarter, while net losses narrowed in the March quarter as well.
The same is the case with many other new-age stocks like PB Fintech, Delhivery and others. A majority of analysts who are tracking these stocks have a buy rating on them.
Here are a few targets:
| Stock | Current Market Price (₹) | Target (₹) Upside (%) Suggested by |
| Paytm | 853.00 | 1,160.00 35.99 Citi |
| Nykaa | 144.00 | 210.00 45.83 JM Financial |
| Zomato | 77.50 | 150.00 93.55 Jefferies |
| Delhivery | 396.20 | 500.00 26.20 ICICI Direct |
Siddhartha Khemka of Motilal Oswal Financial Services in an interview with CNBC-TV18 on June 16 said that “On an overall EBITDA basis, we are expecting
Paytm and Zomato to go to become EBITDA positive by FY25 including all the adjustments and costs that they have been excluding for now.”
On the other hand, expert Mehraboon Irani said that the fall in the prices of new age stocks may just turn out to be a lesson for all the upcoming IPOs lined up in the second half of this financial year that pricing the IPO right is essential. Otherwise, it leads to the destruction of shareholder wealth which takes years to get back on level footing, let alone generate a profit.
Written by Simran Bafna
