After a significant rally last week, the Indian new-age tech stocks witnessed a mixed performance this week as the broader market remained tepid amid weak global cues.

Eleven out of the 18 new-age tech stocks under Inc42’s coverage gained in a range of 0.4% to 26% this week, with CarTrade Technologies emerging as the biggest gainer following its positive Q2 FY23 earnings.

Tracxn Technologies (up about 23%), Yatra (up over 7%), Nykaa (up 6.8%), Zomato (4.2% higher), and Nazara Technologies (up 1.3%) were among the other gainers this week.

On the other hand, six new-age tech stocks, including RateGain, Fino Payments Bank, Paytm, and EaseMyTrip, fell in a range of 0.9% to over 4%. Shares of Yudiz remained unchanged week-on-week.

This week also saw the much-awaited listing of Honasa Consumer, the parent entity of D2C unicorn Mamaearth, on the Indian bourses. 

In the broader market, benchmark indices Sensex and Nifty50 gained 0.8% and 1%, respectively. After witnessing some pressure, the market closed in the green this week. While Sensex ended the week at 64,904.68, Nifty50 closed at 19,425.35.

“Reflecting the mixed global sentiments on account of a more than expected fall in Chinese exports, highlighting a continued slowdown in global trade, the Indian market is mired to a range bound trend,” opined Vinod Nair, head of research at Geojit Financial Services. 

Though cues from the US Fed chair Jerome Powell’s speech have reduced the likelihood of a rate hike in the near term, leading to an ease in US treasury yields and calming the market, headline inflation remains above the US central bank’s target. In the coming weeks, there will be a focus on inflation data in the US and India, Nair said.

On Sunday (November 12), the BSE and the NSE will open for an hour between 6 pm and 7:15 PM for Diwali muhurat trading.

Now, let’s dig deeper into the performance of some of the major new-age tech stocks this week.

The total market capitalisation of the 19 new-age tech stocks under Inc42’s coverage stood at $40.45 Bn at the end of this week as against 18 stocks’ market cap of $40.67 Bn last week.

CarTrade Touches 52-Week High

Shares of CarTrade Technologies rallied a sharp 20% during the intraday trading on Friday (November 10) to touch a fresh 52-week high at INR 874.5 on the BSE. As a result of the rally, the stock also touched its upper price band on the day.

However, the stock shed some of the gains later in the day to settle 19% higher at INR 867.3 on the BSE.

The shares of the auto marketplace emerged as the biggest gainer this week following the rally. Overall, the stock gained 25.6% this week.

While the stock witnessed a northbound movement throughout the week, it jumped on Friday following the company reporting its Q2 FY24 results.

On Thursday, the startup posted a 132% year-on-year (YoY) jump in its Q2 profit after tax (PAT) while reporting a record revenue of INR 314.33 Cr.

While the company’s net profit declined 4% sequentially, it must be noted that its Q2 also included numbers for OLX India business, which it recently acquired. 

Commenting on the stock, Rupak De, senior technical analyst at LKP Securities, said that following the breakout, it now has a resistance at around INR 900. 

If it breaks the INR 900 level, the stock is expected to witness a further rally till INR 1,050-INR 1,100 in the short term, De added.

CarTrade shares are trading over 86% higher year to date (YTD).

Mamaearth Makes A Muted Market Debut

With the market already showing that it’s averse to loss-making entities, the shares of Mamaearth saw a muted listing.

Earlier this week, the shares listed on the NSE at INR 330 at a premium of about 2% compared to the issue price of INR 324. On the BSE, shares of Mamaearth listed flat at INR 324.

Following its listing on Tuesday, the shares nosedived further to end Thursday’s close at INR 302.15 on the BSE. 

However, the shares gained over 5% on Friday to end the week at INR 319.5, down 1.4% from the listing price.

It must be noted that given the company posted a loss in FY23, high offer for sale (OFS) component in the IPO, and a valuation which many perceived to be high, there were already expectations that the stock wouldn’t receive much interest from retail investors.

After the listing, Prashanth Tapse, senior VP research analyst at Mehta Equities said that though risky investors feel the price is good for the long term as the business model has a high potential for growth, the brokerage remains cautious on Mamaearth.

Nykaa’s Q2 Numbers Divide Brokerages

Shares of Nykaa gained 6.8% this week on the back of the beauty and fashion ecommerce giant’s Q2 FY24 results, which showed a strong rebound in its fashion business.

While the consolidated gross merchandise value (GMV) of Nykaa’s beauty and personal (BPC) vertical grew 23% YoY, the growth was 27% YoY for Nykaa Fashion.

Overall, Nykaa’s Q2 PAT grew 50% YoY to INR 7.8 Cr. It also rose 44.4% sequentially.

However, brokerages were divided on the company’s Q2 earnings, which slightly missed the market estimates.

Bernstein pointed at the increasing competition in the BPC space as a reason for this miss.

On the other hand, emphasising its positive stance on the fashion business, JM Financial said  Nykaa would retain its competitive edge as the preferred platform for brand launches in the BPC business with its marketing initiatives to provide brand visibility and its premium and sticky customer base.

Shares of Nykaa ended the week at INR 149.85, 1.7% higher than Thursday’s close.

LKP Securities’ De said the stock has formed its base and now it needs to clear the INR 160 mark to witness a decent rally in the short term.

Once Nykaa clears the INR 160 level, it might move towards the INR 180 level, he added.