New Age Tech Stocks Shares of Zomato, Nykaa, Mamaearth, FirstCry, Paytm and CarTrade Tech, among others, saw ups and downs in their respective prices this week. Some stocks snapped their winning streaks, while others outperformed the blue-chip benchmarks. New-age internet stocks have recently generated a lot of interest among D-Street investors due to their attractive valuations and consumer-centric business mandate approach.
Deepinder Goyal-led food delivery giant Zomato is the largest new generation stock by market value with a market capitalisation (mcap) of ₹2,41,090.10 crore. Zomato is followed by India’s largest online lending and insurance platform, PB Fintech, which operates ‘Policybazaar’ and has a cap of ₹82,729.23 crores. The values on the map correspond to the last market session, i.e., September 13.
New Age Tech Stocks: Weekly Price Trend
In the second week of September, analysts said Paytm, Zomato, Unicommerce eSolutions and Brainbees Solutions (First Cry) had outperformed the blue-chip benchmark NSE Nifty 50. On the other hand, FSN E-Commerce Ventures Ltd, which owns beauty and personal care brand Nykaa Nykaa, Ola Electric Ltd and Delhivery have underperformed in the last five days.
“Zomato’s overall strategy reflects a strong focus on profitability and scalability across multiple verticals. The food delivery segment remains the core of its business, where Zomato has achieved consistent growth, achieving 13 percent GMV growth in USD terms by the end of FY24. The company’s margin improvements are notable, with its EBITDA margin projected to expand from 0.3 percent in FY24 to 15.1 percent by FY27, reflecting operational efficiencies and higher average order values,” said Sonam Srivastava, Founder, Wright Research.
CarTrade Tech was the biggest weekly gainer, leading the new-age technology pack with a stellar rise of 11.78 percent, followed by Brainbees Solutions, which rose 8.79 percent and CE Info System, which gained 4.56 percent.
On the downside, Nykaa emerged as the biggest loser among the top 13 new-age technology stocks this week, shedding as much as 5.51 per cent of its share price. Nykaa was followed by Honasa Consumer Ltd, owner of Mamaearth, which registered a weekly decline of 5.05 per cent and Ola Electric, which shed 2.70 per cent of its share price.
It is worth noting that CarTrade Tech has the smallest market capitalization. ₹4,686.26 crore as compared to top 10 new-age stocks including Nykaa, Zomato, Paytm, Honasa Consumer, PB Fintech and others, however, the online auto firm dominated D-Street as the biggest weekly gainer in the group this week.
In FY24, new-gen tech stocks delivered a return of up to 258 per cent, with Zomato topping the charts after a 38 per cent market correction in FY23. “New-gen stocks have seen a lot of positive action post the success of Zomato, which has now turned profitable and is focused on adding value to its shareholders,” said Avinash Goraksakar, Head of Research, ProfitMart Securities Pvt Ltd.
Outlook for new-age tech stocks
Idiot: Shrikant Chouhan, Head of Equity Research at Kotak Securities, has downgraded Nykaa stock to ‘sell’ despite its sharp price rise of 34 per cent in the last three months. The target price on the stock is pegged at ₹190 at a current market price of ₹206.
“Nykaa has a diversified portfolio of beauty, personal care and fashion products, including its own branded products. We believe the cost of fulfillment may increase in the near term as the company tries to cover many cities with same-day or next-day deliveries,” Chouhan said.
Accordingly, the market analyst cut EBITDA estimates for the BPC and eB2B segments, resulting in a 7-11 per cent EPS cut for FY2025-27 and a fresh FV of Rs190.
Delhivery: Delhivery offers a full range of logistics services including express parcel and heavy goods delivery, PTL freight forwarding, TL freight forwarding, warehousing, supply chain solutions, cross-border express transportation, transportation services and supply chain software. The target share price is set at ₹560 at a current market price of ₹414.
”Delhivery’s growing business reach and interaction is helping it leverage its integrated and interoperable network, increasing its cost advantage over its next-gen/traditional monoline business peers. It is rightly overlooking new opportunities that limit the use of such network advantages. This should likely set the stage for positive surprises in margin growth. We raise our margin estimates by 60-100bps (vs. ~100bps in Q1); FV increases to ₹560 since ₹545,” said Shrikant Chouhan of Kotak.
What are new-age Internet companies?
New-age tech companies focus on innovative, high-growth areas. They often leverage modern technologies such as 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 to disrupt traditional industries.
India’s top new-age technology companies operate in the digital mapping, fintech, online marketplaces, food delivery services, logistics, gaming and cloud computing sectors. These companies include Awfis, Ola Electric, Digit Insurance, Mamaearth, Zomato, Nykaa, Paytm, FirctCry, Zaggle, RateGain, MapMyIndia and Delhivery. In the past week, Awfis and Nykaa stocks have gained the most among all new-age internet stocks.
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