Most newly listed new age business stocks like zomato, Paytm, Nykaa have fallen sharply from their 52-week high as well as their listing or IPO issue price. In the ongoing market correction, new age digital companies have been hit hard. “Since most of them, except Nykaa, cannot be valued on traditional valuation parameters, there is no price buying on dips. There was no justification for their IPO prices, but after the boom market correctionThe valuations are getting attractive,” explained Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Zomato shares have rallied more than half from their all-time high of Rs 169.10. The stock fell 6% to hit a low of Rs 77 on BSE.
HSBC Global Research said in its report that Zomato is “not for calorie-conscious customers or valuation-conscious investors.” However, the FD industry in India is all about a significant change in the product itself – from home cooked food to restaurant food. Which is why we think, while the long-term opportunities are real, the market can anticipate growth in the near term.
Meanwhile, analysts at Ambit Capital preferred Zomato’s core business (food ordering, classifieds, hyperpure), but worry was the additional optionality built into the price despite the limited proximity set versus global peers, which, according to the brokerage, saw the stock improve 41 percent. addressed since. Sell rating. Brokerage house Ambit Capital downgrades Zomato shares rating to ‘Buy’ from strong sell-off over the next 20 years in food ordering with continued profitability at 45-50 per cent market share from FY27E (1-year pushback vs earlier) Is. 106 with a target price of Rs.
Similarly, shares of hero (listed as FSN E-commerce Ventures Ltd) crashed 8 per cent to hit an all-time low of Rs 1,218.8 on the BSE amid brutal market sell-off. The stock has lost over 53 per cent from all-time highs. The company’s market cap fell below Rs 62,000 crore on the BSE.
Similarly, Paytm stock fell over 3 per cent to hit an all-time low of Rs 782.30. Shares of the fintech major are trading down 60 per cent from their all-time high of Rs 1,961.05. The market cap of the firm declined to Rs 51,706 crore.
Brokerage house ICICI Securities is bullish on Paytm despite the current situation with a target price of Rs 1,352 per share. “At our target price of Rs 1,352 per share, Paytm is being valued at approximately 9.5x operating revenue, at a modest premium to global fintechs with a wider offering, in-line with BNPL players and global card networks. Institutions are exempt. “It said.
Zomato, Nykaa, Paytm: Should investors buy, hold or sell these new-age stocks?
Zomato, Nykaa and Paytm fell nearly 50 per cent from their 52-week highs. “Long-term investors should hold onto their stocks as these stocks have consistently underperformed on the back of rich valuations, weak global market sentiments and a reduction in the US Fed rate. Nykaa is a profitable company and I expect it to outperform in the mid to long term,” suggested Gaurav Garg, Vice President – Strategy & Operations, Capitalvia.
Speaking on Investor Strategy on Nykaa, Ashish Sarangi, SEBI Registered Investment Advisor, Pickwright Technologies said that “Investors looking for a new entry point should hold off for a while, as there are many better equities now available on a risk-reward basis. .. Existing investors can hold their positions and wait for the price to average out.”
On Zomato, Abhay Aggarwal, Founder & Fund Manager, Piper Serica, SEBI registered portfolio management services provider, said: “We believe that a business like Zomato, which is a long-term play on fast-growing out-of-home. The food consumption market should be considered by long-term investors for its long-term value creation. With our clear market leadership, strong balance sheet and focus on profitability, we are confident it will reward long-term investors well.”
Commenting on the investment strategy for Paytm, Divam Sharma, Founder, Green Portfolio, a SEBI registered portfolio management services provider, said: “We would suggest investors to wait for profitable growth before investing in Paytm.”
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