New-Age Tech Stocks | CarTrade Tech biggest weekly gainer, Zomato up 6%; D-Street experts pick Paytm for short-term | Stock Market News

New-age tech stocks such as Zomato, Nykaa, Mamaearth, FirstCry, Paytm, Policybazaar, among others, have lately generated a buzzing interest among D-Street investors, especially after significant volatility following their respective initial public offerings (IPOs). Market analysts say a combination of improved performance, attractive valuations and profitability, strategic growth, and favourable market conditions has led to a positive outlook for these companies.

According to a majority of D-Street experts, new-age tech companies offer stronger long-term potential for investors than short-term buying opportunities due to their fresh business models, which are tech-driven and disruptive in nature. The companies are better positioned to exploit modern innovations in artificial intelligence (AI) and digital-first engagement.

Also Read: Zomato, Nykaa, Paytm, CarTrade and more: Should you buy or sell new-age internet stocks? Experts weigh in with top picks

Deepinder Goyal-led food delivery giant Zomato is the biggest new-age gen stock by market value with a market capitalisation (mcap) of ₹2,29,737.94 crore. This is followed by India’s largest online insurance and lending platform, PB Fintech, which operates Policybazaar and commands a cap of ₹78,659.06 crore.

What are new-age internet companies?

New-age tech companies focus on innovative and high-growth areas. They often leverage modern technologies like artificial intelligence, machine learning, the Internet of Things (IoT), and blockchain to create unique products and services. The companies are characterized by sudden growth, high market valuations, and significant potential for disrupting traditional industries.

Also Read: Zomato shares jump nearly 8% as JP Morgan lifts target price to ₹340, projects 40% upside

India’s top new-age tech firms operate in digital mapping, fintech, online marketplaces, food delivery services, logistics, gaming, and cloud computing. These firms include Awfis, Ola Electric, Digit Insurance, Mamaearth, Zomato, Nykaa, Paytm, FirctCry, Zaggle, RateGain, MapMyIndia, and Delhivery. In the last week, shares of Awfis and Nykaa surged the most among all new-age internet stocks.re

Weekly stock price trend

In the first week of September, new-age tech stocks, including Zomato, Nykaa, Honasa Consumer, and CarTrade Tech, performed well, showcasing improving relative strength compared to the general market. PB Fintech, IndiaMART, Just Dial and Maymyindia stocks were also in the limelight this week as there has been good delivery buying from large and retail investors.

Paytm has struggled at ₹571, despite a 71 per cent recovery from its 52-week low, still 47 per cent below its year high. FSN E-Commerce Ventures Ltd, which owns the beauty and personal care brand Nykaa, continues its uptrend, trading at ₹194, having gained 67 per cent over the past year and 27 per cent in 2024 YTD

‘’Zomato continued to showcase market leader traits. The likes of Nykaa and Paytm progressively trended higher as they attempted to swing into a more dynamic stage from the mere consolidation phase stage one of stock cycle analysis, which was a positive indication. In contrast, stocks like Ola Electric, Delhivery, and FirstCry trended lower, indicating continuation of profit booking,” said Kushal Gandhi, Technical Analyst, StoxBox.

Last week, CarTrade Tech was the biggest weekly gainer, leading the new-age tech pack with a stellar rise of eight per cent, followed by Zomato which rose 6.4 per cent, and Honasa Consumer (Mamaearth) which gained 5.46 per cent. On the downside, Paytm and FirstCry dropped by 1.14 per cent and 1.42 per cent, respectively.

In FY24, new-age tech stocks gave up to 258 per cent returns, with Zomato topping the charts after a 38 per cent market correction in FY23. ‘’New Age stocks have seen a lot of positive action following the success of Zomato which has now become profitable and is now focused on adding a lot of value to its stakeholders,” said Avinash Goraksakar, Director, Research at ProfitMart Securities Pvt Ltd.

New-age tech stocks outlook: D-Street experts see long-term opportunities for Zomato, Nykaa; pick Paytm for short-term

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.