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.

The post New-Age Tech Stocks Witness A Mixed Week; CarTrade Emerges The Biggest Winner After Q2 Earnings appeared first on Inc42 Media.

Shares of listed new-age tech startups saw some recovery this week on the back of a rally in the broader market and positive Q2 FY24 earnings.

Twelve out of the 18 stocks under Inc42’s coverage, including RateGain, Zomato, EaseMyTrip, Zaggle, Nazara Technologies, and Paytm, gained in a range of 0.2% to over 11% this week.

RateGain, which reported doubling of its Q2 profit last Friday, emerged as the biggest gainer this week, with its shares rallying 11.6%. It was followed by Zomato, which jumped almost 10%.

On the other hand, ideaForge, Fino Payments, Delhivery, DroneAcharya, IndiaMART, and Yudiz witnessed a decline this week, falling between 0.6% and over 6%. IndiaMART was the biggest loser this week.

Amid the ongoing volatility in the market, another new-age tech startup, Mamaearth, is all set to make its stock market debut. The D2C unicorn’s IPO closed this week and was oversubscribed 7.61X.

Meanwhile, benchmark indices Sensex and Nifty50 gained 0.91% and 0.96%, respectively, this week. While Sensex ended Friday’s trading at 64,363.78, Nifty50 closed at 19,230.60. After falling at the beginning of the week, the market rallied in the last two sessions.

“The market exhibited a cautious tone at the outset, influenced by the uncertainty surrounding the US Fed’s policy meeting. However, as the week progressed, the apprehension dissipated, and market sentiments rebounded. This turnaround was partly attributed to a modest decline in oil prices, which raised optimism about a potential pause in Fed actions,” opined Vinod Nair, head of research at Geojit Financial Services.

Besides, robust corporate earnings from Indian companies and stable domestic macroeconomic PMI also provided a boost, he said.

“Next week, the market is anticipating results from major PSU banks,  auto, and metal sectors with an optimistic outlook,” Nair added.

Now, let’s take a detailed look at the performance of some of the major new-age tech stocks this week.

The total market capitalisation of the 18 new-age tech stocks under Inc42’s coverage stood at  $40.67 Bn at the end of this week as against $37.24 Bn last week.

Zomato Reports Second Profitable Quarter

Shares of Zomato rallied over 8% on the BSE to INR 116.4 on Friday, ending above their listing price on the bourses after almost 22 months. The rally followed the foodtech startup’s announcement of a second consecutive profitable quarter in Q2 FY24.

Zomato posted a profit of INR 36 Cr in Q2 on Friday, which was an 18X jump sequentially. Its operating income stood at INR 2,848 Cr during the quarter under review.

Meanwhile, its quick commerce business also showed impressive growth in Q2 and turned contribution positive for the first time.

Following the release of the results, the company also announced allotting about 10.65 Cr equity shares under multiple employee stock option plans (ESOPs).

Kush Ghodasara, CMT and an independent market expert, believes that Zomato will be a multibagger stock from here on as all its business verticals are growing. The company is also finding new ways to monetise, he said, citing the recent launch of Zomato Xtreme. 

Currently, INR 100 or its 50-day simple moving average is a good support for the stock, he said. Ghodasara expects the stock to cross INR 200 level by the end of next year.

Meanwhile, Zomato’s market cap has now crossed the $12 Bn mark.

RateGain Shares Touch An All-Time High

Shares of traveltech SaaS startup RateGain rallied sharply in three consecutive sessions this week, ending at a historical high of INR 697.45 on the BSE.

Overall, the shares rose about 12% this week.

RateGain reported a 132% YoY jump in its consolidated profit after tax to INR 30.04 Cr in Q2 FY24, while its operating revenue also increased over 88% to INR 234.7 Cr.

RateGain shares have gained 145% year to date.

While the stock looks steady in terms of momentum, Ghodasara believes it is not advisable to buy the stock at this level as there could be some corrections.

A fresh buy is recommended at INR 540 level, he said.

PB Fintech Yet To Achieve Profitability

At a time when there is an increased focus on profitability and market participants are betting big on technology startups that have started turning profitable, PB Fintech reported yet another loss-making quarter.

The fintech major, which runs Policybazaar and Paisabazaar, reported a loss after tax of INR 21 Cr in Q2, a decline of 89% YoY. However, the loss widened from INR 11.9 Cr in Q1 FY24.

Shares of PB Fintech rose 5% this week, ending Friday’s trading session at INR 702.6 on the BSE. 

A further downside is possible in the stock till INR 642 in the coming months, Ghodasara said, adding the stock has the strongest support at that level.

It must be noted that the shares of PB Fintech have gained almost 60% this year on the back of the YoY decline in its losses and the change in sentiment towards listed new-age tech stocks.

[The article has been updated with the correct table]

The post New-Age Tech Stocks Rebound This Week; RateGain, Zomato Among Top Gainers appeared first on Inc42 Media.

It was another subdued week for Indian new-age tech stocks as geopolitical tensions and weak global cues continued to drag down the broader market. 

Thirteen out of the 18 new-age tech stocks under Inc42’s coverage fell in a range of 0.35% to over 10% this week. While recently-listed Yatra was the biggest loser, with the stock crashing 10.3%, Paytm was at the second position with a decline of 9.27%. 

Policybazaar and Zomato fell 7.69% and 6.66% week-on-week, respectively.

On the other hand, Cartrade led the list of winners, with the stock rising 3.73% during the week. The company also announced that it would shut down the auto sales division of OLX, which it acquired recently.

DroneAcharya (up 3.18%), IndiaMART (up 1.62%), MapmyIndia (up 1.28%) and RateGain (rising 0.24%) were the other new-age tech stocks which bucked the bearish trend this week.

It must be noted that IndiaMART and RateGain released their financial results for the quarter ended September on Friday (October 27), while DroneAcharya also published its financials for the first half of FY24 on Friday.

While IndiaMART’s net profit rose by a meagre 2% year-on-year (YoY) to INR 69 Cr in Q2 FY24, traveltech SaaS startup RateGain saw its consolidated profit after tax (PAT) more than double YoY to INR 30.04 Cr in Q2 FY24. 

Meanwhile, drone maker DroneAcharya Aerial Innovations saw its profit soar 2,932% YoY to INR 3.97 Cr in the first half (H1) of FY24. 

In the broader market, benchmark indices Sensex and Nifty50 rose 1.01% to close at 63,782.80 and 19,047.25, respectively, on Friday, after three consecutive trading sessions of decline this week. The market was closed for trading on Tuesday (October 24) on the occasion of Dussehra.

Overall, Sensex and Nifty50 fell 2.51% and 2.71%, respectively, during the week.

Speaking to Inc42, Ganesh Dongre, senior manager of technical research at Anand Rathi, attributed the fall to the Israel-Hamas war and other global concerns.

“The current market selloff is due to the ongoing Israel-Hamas war, potential interest hike by the US Federal Reserve and rising bond prices. Despite this, FIIs are buying, which implies that there is little panic so far in the market. So, the outlook likely points towards consolidation,” added Dongre. 

Amol Athawale, vice president of technical research at Kotak Securities, said he expects the market to complete another round of corrections. He believes there would be selling pressure in the market for a while, which is likely to lead to consolidation. 

Now, let’s take a detailed look at the performance of some of the major new-age tech stocks this week.

The total market capitalisation of the 18 new-age tech stocks under Inc42’s coverage stood at $37.24 Bn at the end of this week as against $39.08 Bn last week.

Paytm’s Bull Run Ends 

Shares of Paytm fell 9.27% this week, as the stock’s bull run ended amid the bloodbath at Dalal Street.

The stock ended the week at INR 895.85 on the BSE on Friday as it witnessed selling pressure despite reporting healthy Q2 numbers. The fintech juggernaut reported a 49% YoY fall in consolidated net loss to INR 291.7 Cr in Q2 FY24 even as operating revenue jumped 31% YoY to INR 2,518.6 Cr.

Despite the fall this week, Kotak Securities’ Athawale said the stock is holding on to the ‘higher bottom formation’ and is still on the positive side despite corrections. 

He, however, cautioned that shares of Paytm are likely to consolidate going forward. “For traders, INR 860 would be the immediate support stop loss,” added Athawale. 

Meanwhile, online stock trading platform Tradingo’s founder Parth Nyati heaped praises on Paytm despite the weekly bearish trend and said, “The company is expected to sustain this improvement in contribution margin and operational efficiency, which will support ongoing profitability. With its extensive user base, diverse use cases, and robust technology platform, Paytm is poised for revenue growth and a shift to substantial profitability starting in FY25E.”

In The News For:

• Fintech giant Paytm became the official sponsor for the ongoing 37th edition of the National Games, being held in Goa
• Paytm founder Vijay Shekhar Sharma launched an INR 30 Cr fund to invest in Indian artificial intelligence (AI) and electric vehicle (EV)-related startups

Zomato, Too, Stumbles

With Q2 financial results just round the corner, the markets also battered Zomato on the bourses. 

Shares of the foodtech giant tanked 6.66% over the course of the volatility-prone week, ending the week at INR 113.4 on the BSE. Market capitalisation also declined over 9% week-on-week to $6.83 Bn at the end of Friday’s session. 

The downward trend came after weeks of positive growth in the share price on the back of its maiden profitable quarter in Q1 FY24. That said, all eyes are now on the company to see if it is able to sustain the momentum and clock another profitable quarter in the second quarter of FY24. 

Anand Rathi’s Athawale continues to be bullish on the stock despite it surging more than 78% on a year-to date (YTD) basis. 

“Broadly speaking, I think INR 100 would be the support level for the shares over the short term. If the stock is selling above INR 100, then, I believe that consolidation or the range bound formation will likely continue. So, on the higher side, INR 113 to INR 115 is possible,” Athawale said. 

Meanwhile, Ivy Growth Associates’ Prateek Toshniwal told Inc42 that Zomato’s long-term prospects appear promising on account of limited disruption from competitors and the Indian food delivery space largely being a duopoly. 

“Strong network effects, branding, last-mile delivery, and user behavior support the positive outlook for Zomato. Blinkit is expected to boost revenue and EBITDA. India’s online food delivery market, while smaller compared to the US and China, presents substantial growth potential driven by urbanisation, nuclear families, and busy lifestyles,” another analyst told Inc42. 

PolicyBazaar Tanks Nearly 8%

Emulating the broader trend in the market, intense selloff battered shares of PolicyBazaar this week. The stock tanked 7.69% this week to end Friday’s trading session at INR 668.90 on the BSE. 

While the stock opened the week on a sluggish note, it recovered somewhat, straddling between highs and lows, as it pared some losses in the week’s final trading session. 

Its market capitalisation declined to $3.61 Bn on Friday from $3.92 Bn a week ago. 

It must be noted that the shares of PolicyBazaar, like its peer new-age tech stocks, have been on an upward trend this year. The stock is trading 49.13% higher YTD. 

Commenting on the stock, Kotak Securities’ Athawale said PB Fintech looks weak on the technical charts and might see profit booking in the short term.

The post New-Age Tech Stocks Sink As Geopolitical Tensions Roil Broader Market; Yatra Biggest Loser This Week appeared first on Inc42 Media.

Indian new-age tech stocks slumped this week in line with the fall in the broader market due to mixed earnings reports of companies in Q2 and geopolitical tensions.

Eleven out of 18 new-age tech stocks under Inc42’s coverage fell between 1% and 9% this week, with newly-listed Zaggle becoming the biggest loser by falling 8.7% on the BSE.

Among the other losers were Tracxn (down 7.8%), Yatra (down 7.5%), EaseMyTrip (fell 2.8%), and Nykaa (down 2.1%).

However, Paytm continued its bull run this week despite the pressure in the market, helped by improved sentiment and expectation of strong Q2 FY24 earnings, which the company released after market hours on Friday (October 20)

Paytm emerged as the biggest winner this week by gaining 5.8% on the BSE, followed by RateGain (up 5.1%).

Yudiz, Zomato, DroneAcharya, ideaForge, and Delhivery were the other gainers that moved up in a range of 0.5% to over 4% this week.

In the broader market, benchmark indices Nifty 50 and Sensex fell 1.06% to 19,542.65 and 1.34% to 65,397.62, respectively, this week, falling in three consecutive sessions.

Vinod Nair, head of research at Geojit Financial Services, said that escalating tensions in the Middle East and elevated US bond yields led the market to a consolidation path this week. 

“A weak start to the earnings season, disappointment from the IT sector, and a mixed bag of results from banks influenced investors to book profits from the table. FIIs continued to withdraw funds as the US Fed Chair emphasised the imperative for continued monetary tightening policy and holding interest rate high,” he said.

Nair expects investors to remain cautious in the near term due to concerns about the long-term implications of geopolitical tensions in the Middle East.

In the coming week, market participants will monitor the US GDP data for insights into the Fed’s interest rate trajectory. Additionally, as the earnings season gains momentum, investor sentiment will be shaped by the management commentaries of the companies and bottom-up investment approach, he added.

Echoing a similar tone, Shrikant Chouhan, head of equity research (retail) at Kotak Securities, said markets worldwide, including India, would respond to geopolitical challenges, oil prices, and bond yield fluctuations. 

Now, let’s understand better how some of the new-age tech stocks performed this week.

The 18 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $39.08 Bn as against $38.74 Bn last week.

Paytm’s Strong Q2 Show

Shares of Paytm continued to surge this week, largely driven by the market expectations that the fintech major would report improved growth in Q2.

Paytm shares gained in all five sessions this week, rising 5.8% to end Friday’s session at INR 987.35 on the BSE.

The company reported its financial statement after the market closed for the week and posted a 49% year-on-year (YoY) decline in consolidated net loss to INR 291.7 Cr in the September quarter.

Its operating revenue also increased 31% YoY to INR 2,518.6 Cr.

Sequentially, too, Paytm saw improvement in its top and bottom lines.

Helped by improving investor sentiment, Paytm shares are already trading 50% higher compared to six months ago.

Commenting on the stock, Jigar S Patel, senior manager of technical research at Anand Rathi, said that though the trend is bullish, investors should remain cautious on the stock given it has already given phenomenal returns in the last few months. 

“We need to wait and watch if the stock is sustaining above INR 980-INR 990 level, after that we can see an upside till INR 1,020-INR 1,030 next week,” he said.

Zomato Partners With IRCTC

Shares of foodtech major Zomato rose over 2% this week amid volatility, ending Friday’s trading session at INR 113.4 on the BSE.

While the stock has been on an upward trend over the last few months, let’s try to understand what might have affected its share movement this week.

In The News For:

• Indian Railway Catering and Tourism Corporation (IRCTC) announced a partnership with foodtech major Zomato earlier this week for delivery of pre-ordered meals on a pilot basis.
• As per a report, SoftBank might offload another 1.1% stake in Zomato for at least INR 1,023.6 Cr ($123 Mn).

Anand Rathi’s Patel said there is a bearish kind of diversion in Zomato’s stock movement right now. So, investors should look to book profit in the INR 110-INR 120 zone. 

Patel added that the support for the stock is near INR 105, followed by INR 100, while resistance is near INR 115, followed by INR 120.

EaseMyTrip Remains Under Pressure 

In 2022, when most new-age tech stocks, including Zomato, Paytm, Nykaa, and PB Fintech, witnessed bloodbath, EaseMyTrip stood out as the most resilient one in the pack. However, the trend has reversed this year.

While many new-age tech stocks have been rallying this year, shares of EaseMyTrip are trading almost 24% lower year to date. Every short-time rally in the stock has been followed by a sharp decline in share price this year. 

This week, the traveltech platform’s shares slumped almost 2.8%. While the stock rose in the first session of the week, it fell in the next four sessions and ended Friday’s trading at INR 40.13 on the BSE.

The company also made a few new announcements over the last week or so.  Last week on Friday, it announced the launch of a dedicated platform for spiritual tourism in India, named EasyDarshan.

This week, it made announcements around discounts. EaseMyTrip said it has partnered the Imperial Society of Innovative Engineers (ISIE) for Formula Imperial 2023 and Indian Karting Race 2023. The platform will offer travel discounts to participants of these sports events.

Besides, it also announced ‘Dussehra Travel Sale’ under which travellers can save up to 4% on flight bookings, up to 53% on hotel stays, and up to 12% on cab reservations.

Meanwhile, EaseMyTrip also became the official associate partner of the World Tennis League for the second consecutive year.

It must be noted that the company’s profit took a hit in Q1 FY24 due to a sharp rise in customer discounts.

  Anand Rathi’s Patel said that an upward trend for the stock is now possible only above INR 45 level, where the stock is facing strong resistance.

The post New-Age Tech Stocks Slip Amid Geopolitical Tensions; Paytm Biggest Winner This Week appeared first on Inc42 Media.

Indian new-age tech stocks continued to witness volatility this week too, in line with the trend in the broader market due to inflationary pressure in the US, geopolitical unrest in the Middle East, and weak financial performance of Indian tech majors in Q2 FY24.

Entering the September quarter earnings season, eight out of 18 new-age tech stocks, under Inc42’s coverage, slumped in a range of 1% to over 8% this week, with MapmyIndia emerging as the biggest loser.

Shares of Nykaa, RateGain, EaseMyTrip, Nazara, and ideaForge also declined this week.

However, 10 new-age tech stocks remained resilient and gained in a range of 0.5% to over 11%.

Continuing last week’s momentum, CarTrade Technologies jumped 11.1% on the BSE to emerge as the biggest gainer.

Besides, Paytm and Zomato hit multiple 52-week highs this week. However, Paytm’s overall gain during the week remained muted at 0.5% while Zomato jumped 6.4% on the BSE.

Recently-listed stocks like Yatra (up 10.3%), Zaggle (up 8.3%), and Yudiz (up 5.8%), along with Delhivery (up 3.8%) and DroneAcharya (up 4.6%), continued to show strength.

Embracing the volatility, benchmark indices Nifty 50 and Sensex rose 0.5% to 19,751.05 and 0.44% to 66,282.74, respectively, this week. However, both the indices ended Friday’s trading session in the red.

“Weak global cues and a sharp rise in crude oil prices dampened the market sentiment as banking and technology stocks led the downfall. While the market is already coping with global economic uncertainty, concerns over the flare-up in the Israel-Palestine conflict have been making investors jittery,” opined Amol Athawale, VP of technical research at Kotak Securities.

Meanwhile, Siddhartha Khemka, head of retail research at Motilal Oswal, also said that the conflict between Israel-Hamas and the likelihood of another rate hike by the US Fed has kept investors on the edge.

In the near term, markets would continue to take cues from macroeconomic data and ongoing Q2 results, he said.

However, Khemka noted that the Indian market has shown resilience despite several global headwinds this week.

“We expect markets to remain in a broad range with positive bias on the back of strong economic data along with expected healthy corporate earnings,” he added.

Now, let’s take a look at the performance of some of the new-age tech stocks this week.

The 18 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $38.74 Bn as against $40.28 Bn last week.

Zomato’s Product Experimentation Continues

After several experiments and pilots carried across new verticals and its main food delivery business, Zomato has now forayed into the logistics business with the launch of Zomato Xtreme.

As per the Xtreme app, the new service aims to simplify the business delivery process from merchants to their valued customers. However, it is not yet clear if the parcel delivery platform will only serve businesses or retail customers as well.

Shares of Zomato gained in four consecutive sessions this week and touched fresh 52-week highs.

Overall, the shares gained 6.4% this week, ending Friday’s trade at INR 111.05, up 1.1% compared to Thursday’s close. 

Meanwhile, Zomato has been slapped with an INR 1 Lakh fine, along with McDonald’s, by the District Consumer Dispute Redressal Forum (II) Jodhpur for alleged wrongful delivery of non-vegetarian food items on a vegetarian order.

Despite a volatile market, retail investors seem to be bullish on the Zomato stock, which has gained more than 87% so far this year.

Prashanth Tapse, senior VP (research) at Mehta Equities said that the stock is currently a “compelling buy” and long positions are recommended with a target of INR 121 to INR 143.

However, many brokerages are of the opinion that Zomato’s food delivery growth in Q2 FY24 could remain muted.

In a research report this week, ICICI Securities said that Zomato’s food delivery gross order value (GOV) is expected to grow 4% sequentially and 14.8% YoY in Q2, while food average order value (AOV) could remain flat sequentially, witnessing a mere 3.2% rise YoY.

“In food delivery, we forecast sequential GOV growth of 4% (+15% YoY) amidst increased competitive intensity,” analysts at JM Financial said.

Zomato’s food delivery business GOV stood at INR 7,318 Cr in Q1 FY24.

Brokerages Bullish On Paytm’s Q2

In their recent research reports, multiple brokerages said that fintech major Paytm is likely to show strong growth in Q2 FY24, like most other payments and fintech players, helped by steady sequential growth in lending.

On the back of an overall positive sentiment in the market, Paytm shares hit new 52-week highs in three consecutive sessions this week.

However, its shares slumped later in the week and the overall gain stood at 0.5% this week. It ended the week in the red at INR 932.9 on the BSE.

Paytm shares could have also been affected by a few other business updates this week.

In The News For:

• Paytm launched the industry’s first alternate ID-based guest checkout solution for merchants.
• The RBI on Thursday slapped the company’s subsidiary Paytm Payments Bank with a penalty of INR 5.39 Cr for non-compliance with KYC norms. 

Paytm is scheduled to report its Q2 FY24 results next week.

Newly-Listed Zaggle’s Bull Run Continues

Fintech SaaS startup Zaggle, which made a muted stock market debut last month, has gained over 45% since its listing. In fact, its shares rallied over 8% this week.

Shares of Zaggle jumped almost 9% on Friday after the company bagged a $20 Mn order from Visa for cobranded forex cards.

Zaggle makes network-agnostic prepaid cards for corporates as rewards and reimbursement vehicles and other fintech SaaS solutions for expense management. 

Its stock ended Friday’s trading session at INR 235.4 on the BSE.

Zaggle listed on the BSE at INR 162 apiece three weeks ago, while its IPO price band was set at INR 156-INR 164 per share.

The post MapmyIndia Biggest Loser This Week Amid Volatility In New-Age Tech Stocks, CarTrade Rallies Further appeared first on Inc42 Media.

The Indian new-age tech stocks continued their mixed performance this week amid the ongoing volatility in the broader domestic equity market.

Though new-age tech stocks performed better overall compared to last week, eight out of the 18 stocks under Inc42’s coverage fell in a range of 0.04% to over 8%.

While ideaForge turned out to be the biggest loser this week (down 8.3%), Nykaa, PB Fintech, DroneAcharya, and the recently-listed Yudiz also declined.

Meanwhile, CarTrade Technologies emerged as the biggest winner this week by gaining 11.5% on the BSE, followed by MapmyIndia, which also rose over 11%.

Eight others, including Paytm, EaseMyTrip, Nazara Technologies, Zomato, and Yatra, gained in a range of 0.8% to 9% this week.

In the broader market, benchmark indices Nifty 50 and Sensex rose 0.1% to 19,653.50 and 0.25% to 65,995.63, respectively, this week. While the indices declined in the first two sessions  of the week, they gained in the last two sessions, helped by the Reserve Bank of India’s (RBI’s) monetary policy announcement on Friday.

The central bank kept the repo rate unchanged at 6.5% for the fourth consecutive time and also maintained India’s FY24 GDP growth forecast at 6.5%.

The market was closed on October 2 due to Gandhi Jayanti.

Siddhartha Khemka, head of retail research at Motilal Oswal said, the market is expected to remain range-bound given the global uncertainty. 

“Markets on Monday would react to crucial US non-farm payroll and unemployment data for the month of September… Also focus will shift toward stock-specific action as Q2 FY24 earnings begin next week,” he said, adding that the IT sector will remain in the limelight as tech majors TCS and Infosys are set to announce their Q2 results next week.

Now, let’s deep dive into understanding the performance of some of the new-age tech stocks this week.

The 18 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $40.28 Bn as against $37.07 Bn last week.

Nykaa’s Robust Q2 Performance Update

Shares of Nykaa witnessed a volatile week, plunging over 4% in the first three sessions but ending Friday’s session up 1.7% on the BSE.

The recovery in the last trading session of the week came on the back of the company’s positive Q2 performance update. The beauty and fashion ecommerce major expects around a 20% year-on-year (YoY) growth in the net sales value (NSV) of its beauty and personal care (BPC) business in the quarter.

Nykaa also said that its net sales for the fashion vertical for the quarter are expected to grow in the early thirties on a YoY basis, while consolidated NSV is likely to grow in the mid-twenties.

The stock ended Friday’s trading session at INR 149.4 on the BSE, down 2.4% week-on-week. 

Meanwhile, the company also announced allotting 1.53 Lakh equity shares as ESOPs this week.

Amol Athawale, VP of technical research at Kotak Securities, said Nykaa shares are still in the consolidation zone but it’s a positive consolidation.

However, the stock will see a fresh rally only after it crosses the INR 150-INR 155 level, following which it can move towards the INR 162-INR 165 mark, he said.

“On the flip side, the 50-day simple moving average (SMA) or INR 142 is the immediate support level for the stock,” said Athawale, adding that below this level, correction is likely to accelerate.

Paytm Touches 52-Week High

Shares of Paytm saw another spike this week, touching a 52-week high of INR 936 during the intraday trading on Friday on the BSE. Though the stock shed some of its gains later in the day, it ended the week at INR 927.9, a rise of 3.5% from Thursday’s close.

Overall, Paytm shares gained over 8% this week.

Despite ESOP expenses continuing to remain a major hurdle for the company on its path to profitability, Paytm allotted 27,687 equity shares to its employees this week.

After a massive fall last year, Paytm shares have gained almost 75% on the BSE so far this year. Currently, the shares are trading at a level last seen in February last year.

Kotak Securities’ Athawale said that the broader texture of the stock is on the positive side and INR 875-INR 880 is the immediate support level.

The stock can move up to INR 949-INR 950 going forward. However, due to the current market volatility, there’s also a possibility of consolidation in the near term if the broader market undergoes a correction, he added.

ideaForge Touches An All-Time Low

While the new-age tech stocks which were battered last year are seeing a sustained positive momentum this year, the situation is different for the startups which listed this year. Drone startup ideaForge, which listed at a 94% premium in July, continues to witness a major slump in its share price. 

This week, its shares declined 8.3%, ending Friday’s session at INR 823.55 on the BSE. ideaForge declined in all four sessions this week, touching an all-time low of INR 815 during Friday’s intraday trading session.

It must be noted that the startup approved the allotment of 1.41 Lakh equity shares, having a face value of INR 10, as ESOPs this week. 

Shares of ideaForge, which listed at INR 1,305.1 on the BSE, are currently trading almost 37% lower from the listing price.

The post New-Age Tech Stocks See Another Mixed Week; CarTrade Gains Over 11%, ideaForge Biggest Loser appeared first on Inc42 Media.

Indian new-age tech stocks witnessed a mixed market performance this week as the broader equity market remained largely volatile due to global uncertainties.

Of the 17 new-age tech stocks under Inc42’s coverage, excluding Yatra which listed on the bourses on Friday, nine slumped this week in a range of  0.6% and over 5%. 

While EaseMyTrip emerged as the biggest loser, down 5.2%, Nazara Technologies, DroneAcharya, ideaForge, and Delhivery also fell.

On the other hand, eight new-age tech stocks gained during the week. Zaggle, which listed on the bourses last week, saw its shares jump over 26% to emerge as the biggest winner this week.

Others including MapmyIndia, RateGain, Zomato, and Paytm gained in a range of 0.7% and over 18% this week.

Meanwhile, Yatra made a lacklustre debut on the exchanges this week. The traveltech major listed at INR 130 on the BSE, lower than its issue price of INR 142.

In the broader market, benchmark indices Nifty 50 and Sensex fell 0.18% and 0.27% to 19,638.30 and 65,828.41, respectively, this week. While the indices saw a downward trend in the week, they ended the month’s last session in the green. While Nifty 50 ended Friday’s session 0.59% higher, Sensex rose 0.49%. 

Amol Athawale, vice president of technical research at Kotak Securities, said the markets remained subdued to negative over the past few sessions due to worries over likely rate hikes, selling by foreign institutional investors (FII), strengthening US dollar, rising US bond yields, and surging crude oil prices.

“… but India still provides some stability in an unpredictable market due to strong economic activity and hence our markets will continue to attract investors’ attention over the medium to long-term perspective,” he said.

Commenting on the week ahead, Pravesh Gour, senior technical analyst at Swastika Investmart, said the market will closely monitor the outcome of the RBI’s monetary policy committee (MPC) meeting, scheduled for October 4-6. 

“Aside from that, market participants will be keeping an eye on the movement of the rupee against the dollar and crude oil prices. Investments by FIIs and domestic institutional investors (DIIs) will also be monitored,” Gour added.

Now, let’s take a look at the performance of some of the new-age tech stocks this week.

The 18 new-age tech stocks currently under Inc42’s coverage ended the week with a total market capitalisation of $37.07 Bn as against 17 of them ending last week at $31.74 Bn.

Nazara Slumps Again

After gaining 4.8% last week, shares of Nazara Technologies declined 4.6% this week to emerge as the third biggest loser among the listed new-age tech stocks.

Nazara ended the week at INR 835.3 on the BSE.

Earlier this week, the company received a show cause notice from the Mumbai office of the Directorate of GST Intelligence (DGGI) for INR 2.84 Cr. Though Nazara shares gained slightly on Thursday, the overall volatility remained.

Ganesh Dongre, senior manager of technical research at Anand Rathi, said that the stock is expected to undergo more correction and reach INR 780-INR 790 zone. Once this level is reached, one can go long on the stock with a stop loss at around INR 740 zone, he said.

Dongre expects shares of Nazara to rally once again in the next 2-3 weeks, with a potential to reach around INR 900.

The gaming major’s shares have rallied significantly since mid-August on the back of its new fundraises.

EaseMyTrip Biggest Loser

In a complete reversal of its performance last week, shares of traveltech startup EaseMyTrip slumped 5.2% this week, becoming the biggest loser.

The stock was the biggest winner last week. This week, the stock ended the last session at INR 40.52 on the BSE.

During the week, the startup announced a collaboration with visa processing services provider DuDigital Global Limited to improve the visa and passport services experience. 

Besides, EaseMyTrip also announced the opening of a new franchise store in Punjab. The company also held its annual general meeting post market close on Friday.

Anand Rathi’s Dongre said the stock is currently in the selling zone, hence, it’s advised to avoid buying this counter till it reaches around INR 35 level.

“Use a buy-on-dips strategy on this counter right now,” he said.

RateGain Announces New ESOP Allotment 

On Monday (September 25), travel SaaS platform RateGain approved the allotment of 22,080 equity shares of face value of INR 1 each under RateGain Employees Stock Option Scheme–2015.

It also allotted 7,129 equity shares of face value of INR 1 each to the eligible employees who have exercised their Stock Appreciation Rights, under RateGain – Stock Appreciation Rights Scheme – 2022.

The startup said that following this, its paid-up equity share capital stood at INR 10.84 Cr.

RateGain shares gained in two straight sessions earlier this week, before falling slightly. However, the stock ended the week almost 4% higher at INR 593.2 on the BSE.

Overall, the stock gained 9.9% this week, becoming the second-biggest gainer.

The stock looks positive on the daily chart with possibilities of further rally in the coming weeks, said Dongre.

The target for the stock is at INR 630 and stop loss is at INR 550, he added.

The post New Age Tech Stocks Witness A Mixed Week; Zaggle Biggest Gainer This Week appeared first on Inc42 Media.

Indian new-age tech stocks slumped this week as bearish sentiment loomed over the broader domestic market amid hawkish commentary from the US Fed on interest rates and India-Canadian political tensions.

Of the 16 new-age stocks under Inc42’s coverage, excluding Zaggle which listed on the bourses on Friday, 13 fell in a range of 1% to over 8% on the BSE this week.

CarTrade Technologies was the biggest loser this week, falling 8.1%, ending Friday’s session at INR 545.5 on the exchange.

Besides, others like Zomato fell 3.1%, Paytm was down 3.7%, Nykaa slumped 6.5%, Delhivery 1.6%, and PB Fintech fell 2.5%.

It must be noted that four of these new-age tech startups – Zomato, Paytm, Nykaa, and Delhivery – have Canada Pension Plan Investment Board as one of their investors. While analysts so far believe that the souring ties between Canada and India would not immediately lead to any significant pressure on these stocks, the analysis might change if the tensions escalate further.

Meanwhile, despite the pressure, EaseMyTrip, Nazara Technologies, and DroneAcharya gained this week. EaseMyTrip emerged as the biggest winner this week, surging over 7% on the BSE.

In the broader market, benchmark indices Nifty 50 and Sensex slumped in all four sessions. While Nifty 50 fell 2.57% to 19,674.25, Sensex declined 2.7% to 66,009.15 this week.

The market was closed on Tuesday (September 19) on account of Ganesh Chaturthi.

Commenting on the weekly performance, Siddhartha Khemka, head of retail research at Motilal Oswal, said the sharp surge in the US bond yields following the Fed’s decision to maintain a higher interest rate stance and heavy selling by Foreign Institutional Investors (FIIs) led to profit booking in the market. 

“We expect the market to remain under pressure in the near term given the global concerns. Thus, we suggest investors to have higher allocation towards defensive and large caps,” said Khemka.

He also opined that investors would look for economic data like US and UK GDP numbers, EU inflation, US and China manufacturing PMI, and India’s infrastructure output for further direction.

Meanwhile, pointing at the deteriorating ties between India and Canada, Arvinder Singh Nanda, senior VP at Master Capital Services, said it would become important to watch the investments of the Canadian Pension Plan Investment Board of INR 1.74 Lakh Cr in India. 

“It is expected that if this tension further escalates, it can create some pressure,” Nanda added.

Amid all these uncertainties, Zaggle made a muted debut on the stock markets on Friday (September 22). The shares listed at INR 164 on the NSE and INR 162 on the BSE as against its issue price of INR 164 per share. 

Shares of traveltech startup Yatra are expected to list on the stock markets next week.

Now, let’s take a look at the performance of some of the new-age tech stocks this week.

The 17 new-age tech stocks currently under Inc42’s coverage ended the week with a total market capitalisation of $31.74 Bn as against 16 of them ending last week at $36.05 Bn.

EaseMyTrip Regains Momentum

Ahead of the listing of its competitor Yatra, shares of traveltech startup EaseMyTrip jumped sharply this week. In the first trading session of the week, the stock surged over 12%, closing at INR 44.76, a level last seen in early June.

Though the shares shed some of their gains in the next trading sessions, EaseMyTrip was up 7.1% overall on the BSE this week.

It must be noted that while most new-age tech stocks, especially the ones that were battered last year, have witnessed a significant uptrend this year, EaseMyTrip shares have failed to make any gains so far this year.

In fact, the traveltech major’s shares are trading down over 18% year to date (YTD).

Meanwhile, EaseMyTrip announced new discounts and sales on its platform this week.

In its Golden Bharat Travel Sale, which will take place from September 19 to September 26, travellers can save up to INR 2,023 on domestic flight bookings, up to INR 7,500 on international flights, up to INR 10,000 on hotel bookings, and more.

It is further pertinent to note that the company’s profit after tax (PAT) declined 21.8% to INR 25.9 Cr in Q1 FY24 from INR 33.1 Cr last year on the back of a sharp increase in customer discounts.

EaseMyTrip also announced the launch of a smart voice assistance tool this week to enhance the booking experience on its platform.

Zomato’s Experiments Continue

After introducing a platform fee to shore up its revenue, Zomato has now introduced a feature where customers can tip the kitchen staff in restaurants on ordering food.

As a part of this new experiment, Zomato said that it would allow customers to pay 3%-10% of the order value as a tip. However, the company clarified that it would not keep any commissions from the tip amount.

The food delivery platform would remit the tips to the restaurants, after deducting any applicable taxes.

Zomato has earlier faced backlash for high commission fees on its platform. Hence, such a step could be a strategic one to attract restaurants to sign up on Zomato – particularly at a time when the company is aggressively focussing on its profitability. 

However, Zomato shares were largely bogged down by the pressure in the broader market this week. After touching a new 52-week high at INR 105 during the intraday trading on Monday, the shares lost their gains. Overall, the shares fell 3.1%, ending Friday’s session at INR 99.85 on the BSE.

However, it must be noted that Zomato shares have gained almost 90% in just six months. Shares are up 68% YTD.

Commenting on the stock, Rupak De, senior technical analyst at LKP Securities, said Zomato is facing some resistance at around INR 103. Below this level, the stock will continue to witness selling pressure. 

Nazara Shows Resilience

Nazara was the second biggest gainer this week as its shares surged over 6% on Tuesday alone. Though the stock was volatile, overall it managed to gain 4.8% during the week on the BSE.

Speaking to Inc42, Nazara Technologies CEO and joint MD Nitish Mittersain said this week that the company is looking to raise the freshly-raised capital from Kamath brothers of Zerodha and SBI Mutual Fund to acquire more gaming studios to strengthen its gaming intellectual property (IP) rights.

Despite difficulties increasing for the real money gaming companies on the back of increased GST rate, Mittersain said Nazara would not scale down its presence in the sector as it invests more in acquisitions.

While shares of Nazara faced pressure in the stock market in July after the government’s decision on GST, the stock has been on an upward trend since last month.

Shares of Nazara are up 51% YTD.

LKP Securities’ De believes that Nazara’s bullish trend is likely to continue and the stock might reach INR 1,000 level in the short term. Support for the stock is at INR 830, he added.

Nazara’s annual general meeting (AGM) is scheduled to be held on September 29.

The post New-Age Tech Stocks Slump In Line With Broader Market, EaseMyTrip Biggest Winner This Week appeared first on Inc42 Media.

Indian new-age tech stocks witnessed a muted performance this week after three consecutive weeks of steady uptrend, despite a positive momentum in the broader equity market.

Of the 16 new-age tech stocks under Inc42’s coverage, 10 declined in a range of 0.7%-12% on the BSE this week, with the newly-listed Yudiz becoming the biggest loser.

PB Fintech, Nazara Technologies, Delhivery, Paytm, and RateGain were among the other tech startups which fell this week.

On the other hand, DroneAcharya emerged as the biggest winner by gaining 14.5%. Among the other gainers were Nykaa (up 5%), Zomato (up 3.6%), ideaForge (up 0.15%), and EaseMyTrip (up 3.3%). 

In the broader market, benchmark index Nifty 50 crossed the 20K mark for the first time this week. It ended Friday’s session at 20,192.35, gaining 1.88% in the week. Sensex also rallied 1.86% to end the week at 67,838.63. 

“The market is inching towards a new direction with renewed buying in auto and IT stocks in expectation of strong festive demand and a strong deal wins. Better-than-expected economic data from China and stimulus hopes further added optimism in global markets,” said Vinod Nair, head of research at Geojit Financial Services.

It must be noted that as per the data released by the Ministry of Commerce and Industry this week, India’s Wholesale Price Index (WPI) inflation remained in the negative territory at (-)0.52% in August as compared to (-)1.36% in July. Meanwhile, retail inflation declined to 6.83% in August from 7.44% in July.

Arvinder Singh Nanda, senior VP of Master Capital Services, said that in the coming days, the market may react to the macroeconomic data such as US S&P global manufacturing and services Purchasing Managers’ Index, initial jobless claims, building permits, crude oil inventories, existing home sales, the decision on Fed interest rate, and UK inflation, among others.

Now, let’s take a look at the performance of some of the new-age tech stocks this week.

The 16 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $36.05 Bn as against $37.21 Bn last week.

Paytm’s Mixed Week After Its 23rd AGM

Shares of Paytm declined sharply in two consecutive trading sessions following the fintech major’s 23rd annual general meeting on Tuesday (September 12). However, they regained some momentum again during the last two trading sessions of the week, ending Friday’s trading at INR 883.65 on the BSE, 3.2% higher compared to Thursday’s close.

Overall, Paytm shares fell 2.3% this week.

Paytm, in its AGM, said that its AI stack will serve India’s financial services ecosystem for decades to come.

“Focusing on Artificial General Intelligence (AGI), we will soon become a global superpower and Paytm will lead this. AGI software stack will create opportunities to lower costs, spread farther and make our financial system safer and secure,” said founder and CEO Vijay Shekhar Sharma.

In the previous week, Paytm announced the launch of multiple new products and features to enhance the payment services.

On the other hand, during the AGM this week, Paytm officials also expressed hope about the Reserve Bank of India (RBI) lifting the restrictions imposed on its subsidiary Paytm Payments Bank on onboarding new customers by March 2024.

Commenting on the stock, Jigar S Patel, senior manager, technical research analyst, at Anand Rathi, said that the stock is likely to trade sideways in the coming week. While the downside for the stock is till INR 800, upside is expected till INR 950, he added.

Zomato Touches Another 52-Week High

Despite a muted week for a majority of the new-age tech stocks, Zomato continued its rally and gained 3.6% this week.

Shares of the foodtech startup jumped as much as 5% during the intraday trading on Friday, touching its 52-week high at 104.42 on the BSE.

After shedding some of the gains later in the day, Zomato ended the week at INR 103.04, a level last seen at the end of January 2022.

Earlier this week, Equirus Securities initiated coverage on Zomato with a ‘long’ rating and a price target (PT) of INR 135. The brokerage projected the startup to become one of the fastest-growing players in India’s internet landscape.

Meanwhile, Bernstein also spoke about Zomato “raising the profitability bar” following the company achieving profitability ahead of Street estimates in Q1 FY24. It also increased the PT for the stock to INR 120 from INR 100 earlier.

Meanwhile, Zomato, which is focusing on remaining profitable and continuing its growth, also announced the winding up of its Slovakian subsidiary this week.

Anand Rathi’s Patel said shares of Zomato are likely to continue their rally till INR 110-INR 111 in the next week. The support for the stock is at INR 95.

Following a sharp rally this year, Zomato shares are now trading just 10% below its listing price of INR 115 on the BSE.

DroneAcharya Biggest Gainer

Shares of drone startup DroneAcharya jumped 28.4% on Monday (September 11) after it announced the launch of a drone, BHUJANG (Battlefield Hybrid UAV for Joint Attack, Navigation and Guarding).

In an exchange filing, the startup said BHUJANG is a heavy lift-off, super-high-altitude, long-range drone with multiple capabilities. The launch was done on September 9.

As per DroneAcharya’s statement, BHUJANG is India’s first super high altitude multi-rotor multi-role drone, achieving an altitude of 1,500-meter above ground level from a 4,800-meter-high take-off point. It is also South Asia’s first drone with combat, transport and surveillance capabilities in a single aircraft, the startup said.

It must be noted that the drone startup is on an expansion spree. Last month, it also announced its foray into the spacetech sector. 

This week, shares of DroneAcharya gained 14.5%, ending Friday’s trading at INR 174.45 on the BSE.

Anand Rathi’s Patel said that the stock is expected to trade sideways in the coming week. The support for the stock is near INR 165 while the resistance is at INR 190, he said.

The post New-Age Tech Stocks’ Winning Streak Ends; Yudiz Biggest Loser This Week appeared first on Inc42 Media.

The uptrend in new-age tech stocks continued for yet another week on positive business-specific updates and a bull run in the domestic equity market.

Nine out of 16 stocks under Inc42’s coverage, including Nykaa, Nazara Technologies, Paytm, PB Fintech, and Zomato, rose in a range of 1%-16% this week.

Nazara emerged as the biggest gainer of the week, with its shares surging 15.5% on the BSE on the back of fresh investments in the company.

However, Delhivery, Fino Payments Bank, Yudiz, DroneAcharya, RateGain, and EasyMyTrip witnessed a decline, falling in a range of 0.09% to over 5%. Traveltech major EasyMyTrip, which was the biggest gainer two weeks ago, was the biggest loser among the new-age tech startups. 

In the broader market, benchmark indices Sensex and Nifty 50 rallied in all five sessions this week. Sensex ended the week 1.85% higher at 66,598.91, while Nifty 50 closed at 19,819.95, up 1.98%. 

“Nifty has been gaining strength and is inching closer towards its life high of 19,992. With monsoon gradually improving and India set to host the G20 summit over the weekend, sentiments are buoyant and may lift the market towards its life high and 20K mark over the next few days,” said Siddhartha Khemka, head of retail research at Motilal Oswal.

He also noted that banking stocks saw renewed interest this week after the Reserve Bank of India (RBI) said it would phase out incremental cash reserve ratio (ICRR) requirements by October 7.

While the market is expecting Nifty to cross the 20K mark next week, Shrikant Chouhan, head of equity research (retail) at Kotak Securities, pointed out that the dark shadows of slowdown in global growth, high interest rates and valuation, and high inflation (particularly food inflation) globally as well as domestically continue to weigh on the market.

However, the overall situation has improved significantly for the new-age tech stocks from the bearish sentiment last year. 

Now, let’s take a look at the performance of some of the new-age tech stocks this week.

The 16 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $37.21 Bn, slightly lower from $37.24 Bn last week.

Nazara Emerges As The Biggest Gainer

Shares of Nazara jumped 15.5% this week, ending Friday’s session at INR 876.8 on the BSE. Last week, Nazara said that it was looking to raise fresh capital via issuance of equity shares. This week the company was in the news for the investment updates.

In The News For:

• Nazara confirmed this week that Zerodha founders Nithin Kamath and Nikhil Kamath are investing INR 100 Cr in the gaming and sports media platform. 
• SBI Mutual Fund is also set to invest INR 410 Cr in the company. 

It must be noted that while announcing its financial results for Q1 FY24, Nazara hinted at more acquisitions going forward.

Shares of Nazara are up over 51% year to date (YTD).

Commenting on the stock, Jay Thakkar, head of alternate research at Sharekhan, said that it has a good support at INR 790 and the shares can rally up to INR 1,020 in the near future. 

Paytm Launches Multiple New Products 

Fintech major Paytm continues to aggressively grow its payments portfolio while eyeing profitability. This week was a testament to the same.

In The News For:

• Paytm announced partnership with the National Payments Corporation of India (NPCI) to launch multiple new UPI features. In a statement, a Paytm spokesperson said, “… we are proud to partner with NPCI to enable the launch of innovative new features like Credit Line on UPI, Billpay Connect and UPI Tap & Pay. Bringing these offerings first to our users, we will take Paytm UPI to the next level, driving further adoption.” 
• Paytm also launched a new device called Card Soundbox this week to enable merchants to accept card payments from Visa, Mastercard, American Express, and RuPay networks. As per Paytm, 87 Lakh merchants used its payment devices as of August 2023.
• Paytm founder and CEO Vijay Shekhar Sharma is looking to raise his stake further in the company.

Shares of Paytm rose 5.5% this week, ending Friday’s session at INR 904.25 on the BSE.

Sharekhan’s Thakkar said shares of Paytm are likely to continue their rally in the near term. The stock has a potential upside target of INR 1,050, while INR 830 is the support level, he added.

Nykaa Witnesses Sharp Rally

Muted business growth and increase in competition has resulted in shares of Nykaa giving lesser returns this year compared to its peers Zomato and Paytm. However, the stock rallied 8% this week, emerging as the second biggest gainer after Nazara among the new-age tech companies. Shares of Nykaa ended the week at INR 146.1 on the BSE.

While there was no clear reason for the jump in share price, it could have been driven by improved sentiments as this week Jefferies conducted its 4th Annual Asia Forum this week which was expected to be attended by Nykaa.

Meanwhile, in a consumer survey report on the beauty and personal care (BPC) segment, JM Financial said Nykaa remains a strong play on India’s secular BPC growth.

“We understood from our conversation with participants that Nykaa has been successful in building its image as a company that provides ‘authentic’ products, which has led people to shift to the online platform for BPC products and the company being primarily responsible for this habit formation,” the brokerage stated.

As per the report, Nykaa remains highly popular among the country’s females, with 80% penetration. However, only 25% of males shop on Nykaa’s platform. 

JM Financial’s survey saw participation of over 200 individuals from more than 35 cities.

“The short term trend for Nykaa is positive,” said Sharekhan’s Thakkar. He sees INR 130 as crucial support for the stock and believes that Nykaa can rise up to INR 165.

The post Bull Run In New-Age Tech Stocks Continues; Nazara Biggest Gainer This Week appeared first on Inc42 Media.

New-age tech stocks continued their winning run this week on the back of a recovery in the broader domestic equity market.

Ten out of the 16 new-age tech stocks under Inc42’s coverage gained this week between 1% and 15%, with the recently-listed Yudiz emerging as the biggest winner.  

Yudiz got listed on the NSE SME platform on August 17 this year at INR 185 apiece. This week, the startup’s shares jumped 14.8% to end Friday’s session at INR 202.7.

CarTrade Technologies, Nazara, EaseMyTrip, Delhivery, and Zomato were among the other gainers of the week.

However, despite the revival in the broader market that broke the five-week losing streak, shares of Paytm, Nykaa, DroneAcharya, MapmyIndia, Fino Payments Bank, and ideaForge fell this week. Paytm slumped almost 5%, emerging as the biggest loser this week.

In the broader market, Sensex rose 0.77% while Nifty 50 gained 0.9% this week. The benchmark indices rallied significantly on Friday alone, as Sensex jumped 0.86% and Nifty 50 0.94% to end the week at 65,387.16 and 19,435.30, respectively.

The rally on Friday was largely aided by Q1 Gross Domestic Product (GDP) numbers. According to the National Statistical Office’s data, India’s GDP grew by 7.8% in the April-June quarter of FY24 as against a 6.1% growth in the preceding quarter – Q4 FY23.

Stepping into the new month, the market is brimming with various domestic and global macroeconomic indicators that are expected to sustain their momentum, said Pravesh Gour, senior technical analyst at Swastika Investmart.

However, he said that “below normal” monsoon rainfall this year is expected to have a significant impact on market trends.

Meanwhile, Amol Athawale, vice president of technical research at Kotak Securities, said, “While there will be some challenges going ahead due to weak monsoon activity, overseas funds may continue to bet on India due to signs of strong growth performance going ahead.” 

“Technically, the Nifty has formed a double bottom formation on daily and intraday charts, which indicates a strong possibility of a fresh uptrend rally from the current levels,” he added.

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

The 16 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $37.24 Bn as against $36.36 Bn last week.

Paytm The Biggest Loser

Reversing the 4.6% gain last week, shares of Paytm declined 4.7% this week. 

The drop came after Antfin (Netherlands) Holding B.V. sold 2.27 Cr shares, or a 3.6% stake, in the fintech major last Friday.

Besides, we must also note that after months of anticipation, Reliance announced this week that its newest entity Jio Financial Services (JFS) will offer products in the payments and insurance segments.

Earlier, many analysts said that the entry of deep-pocketed JFS could pose a significant competitive threat to Paytm.

During Reliance’s annual general meeting, its CMD Mukesh Ambani called JFS as the world’s highest capitalised financial services platform at inception.

However, Paytm’s gains still remain a significant 61.5% year to date (YTD).

Kotak Securities’ Athawale said Paytm looks positive on the technical charts and the stock is holding a higher-bottom formation and is ready for the next rally. 

“The immediate support for the stock is around INR 830-INR 840 and on the higher side INR 920 is possible,” said Athawale, adding that further upside is also possible which can see the stock rising up to INR 940.

Nazara Touches 52-Week High

Shares of Nazara Technologies jumped 8.2% on Thursday to reach a 52-week high of INR 814.30 on the BSE this week. Though the stock pared some of its gains to end the day at 777.75, it was at a level last seen at the end of April last year.

Overall, Nazara shares gained 7.4% this week, ending Friday’s session at INR 759.2 in the exchange.

In The News For:

• Nazara said this week it is looking to raise capital via issuance of equity shares or securities on a preferential basis and would seek board approval for the same.
• As per a report, Zerodha founder Nikhil Kamath could possibly increase his stake in the gaming company to 3.5% from his current stake of around 1%.

Though the stock is facing some profit booking at a higher level, the texture is largely bullish, said Kotak Securities’ Athawale.

“The immediate support for the stock is around INR 720-INR 725. As long as the stock is trading above that, the upside momentum is likely to continue,” said Athawale, adding that Nazara shares could reach INR 810-INR 825 in the medium term.

Nazara shares are currently training around 31% higher YTD.

SoftBank Offloads Almost Half Of Its Stake In Zomato 

SoftBank’s SVF Growth (Singapore) offloaded Zomato shares worth INR 947 Cr in a block deal this week. 

As of quarter ended June 2023, SVF held 28.7 Cr shares in Zomato, which translated to a 3.35% stake in the foodtech major.

In its latest block deal, the VC major sold 10 Cr Zomato shares, or 1.16% of its stake in the company.

Following SoftBank’s stake sale, Zomato shares fell in two consecutive sessions, reversing the sharp rise seen at the beginning of the week.

Despite the fall, the startup managed to gain 6.9% this week, ending Friday’s session at INR 97.23 on the BSE.

It must be noted that the shares sold by SoftBank were bought by several investment firms and banks, including BNP Paribas Arbitrage, Citigroup Global Markets Mauritius, Axis Mutual Fund, and Morgan Stanley Asia Singapore.

Meanwhile, Zomato, on Friday, informed its stakeholders that Lunchtime, a step-down subsidiary of Zomato Limited, situated in the Czech Republic initiated the liquidation process.

“…the dissolution of Lunchtime will not affect the turnover/revenue of the Company,” Zomato said.

This week, Zomato also announced the launch of a chatbot, Zomato AI, to enhance the customers’ overall food ordering experience.

After a rally, Zomato shares have started consolidating but the formation is positive, said Kotak Securities’ Athawale. 

The immediate support level for the stock is at INR 92-INR 93 and above that, it could rally till INR 110-INR 115 in the medium term, he added.

This week, Zomato once again crossed the $10 Bn market cap mark.

The post New-Age Tech Stocks Rally Amid Rally In Broader Market, Paytm Biggest Loser This Week appeared first on Inc42 Media.

Indian new-age tech stocks largely witnessed a northbound movement this week despite the weakness in the broader domestic equity market.

Twelve out of the 16 new-age tech stocks under Inc42’s coverage gained in a range of 0.2% and over 7% this week, while EaseMytrip emerged as the biggest winner with 7.3% gain on the BSE.

Other gainers of the week included MapMyIndia (jumped 7.1%), Paytm (up 4.6%), CarTrade Technologies (up 3.8%), Nykaa (rose 2.8%), and Zomato (up 1.7%).

Meanwhile, Delhivery, IndiaMart, ideaForge, and Tracxn were the only losers this week, declining between 1% and 4% on the BSE.

In the broader market, Sensex fell 0.1% to 64,886.51 while Nifty 50 declined 0.23% to 19,265.8 this week. The indices fell sharply in two consecutive trading sessions on Thursday and Friday, largely due to the weakness in global markets.

“Markets tumbled sharply tracking weak global equities, as rapidly-rising bond yields continue to weigh on the sentiment. Bets for more Fed rate hikes continue to boost bears’ confidence ahead of Jerome Powells’ speech at the annual Jackson Hole Symposium event,” said Prashanth Tapse, senior VP (research) at Mehta Equities.

Tapse sees a possibility of a massive sell-off in the domestic market amid deteriorating technical and fundamental catalysts that are denting sentiments.

The market is also expected to react to the upcoming annual general meeting of Reliance Industries on (August 28). 

Besides, India’s Q2 GDP and Purchasing Managers’ Index (PMI) data in the coming week, along with cues from China, foreign investor activities, and fluctuations in the dollar index and US bond yields, will play a pivotal role in shaping market dynamics throughout the week, said Santosh Meena, head of research at Swastika Investmart. 

Now, let’s take a detailed look at the performance of some of the new-age tech stocks this week.

The 16 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $36.36 Bn as against $34.45 Bn last week.

Ant Group Offloads 3.6% Stake In Paytm

Antfin (Netherlands) Holding B.V. sold 2.27 Cr shares or 3.6% stake of Paytm worth over INR 2,037 Cr on Friday.

The latest share offloading came shortly after Antfin transferred 10.3% Paytm stake to founder Vijay Shekhar Sharma’s Resilient Asset Management via an off-market transaction.

At the end of the June quarter, Antfin held 15.09 Cr shares or 23.79% stake in Paytm.

Paytm shares saw a major jump mid-week, however, it ended Friday’s trading session in the red at INR 899.3 on the BSE. Overall, Paytm shares rose 4.6% this week.

It is pertinent to note that Paytm also published its annual report for FY23 this week in which CEO Sharma informed stakeholders about the company’s intention to disrupt the small mobile credit market in the country.

“By helping enable digital loan collection on app, we are now creating a small revolution for financial inclusion, where a loan of as small as a few hundred rupees can be disbursed and collected at very minuscule cost,” Sharma said.

Following a significant rally in its shares in the last few months, the shares of the fintech major have gained almost 70% year to date (YTD).

Rupak De, senior technical analyst at LKP Securities, said Paytm is currently in an uptrend and the support for the stock is at INR 880.

“If it sustains above INR 880, then the uptrend might continue. Else, there could be some consolidation,” De said, adding that the overall trend is sideways to positive.

The target for the stock in the medium term is INR 1,160 and it is INR 1,000 for the short term, he said.

EaseMyTrip Biggest Winner

After a significant downfall since last month, shares of traveltech giant EaseMyTrip regained momentum this week. Its shares jumped 7.3%, ending Friday’s session at INR 40.1 on the BSE.

It is pertinent to note that EaseMyTrip was the second-biggest loser among the new-age tech stocks last week, with its share nosediving 7.5%. Its shares were largely hurt by Q1 results where it reported a decline in profit.

However, this week, the stock gained in three consecutive sessions to emerge the biggest winner.

LKP Securities’ De said that the stock is facing a near-term resistance at INR 42, which, if cleared, would make it rally towards INR 48 in the short term.

EaseMyTrip’s support lies at INR 38, he added.

While most of the new-age tech stocks have bounced back this year after the sharp falls in 2022, shares of EaseMyTrip are trading 24% lower YTD.

Zomato’s Monetisation Experiments 

Almost a month After Zomato started levying a platform fee of INR 2 per order for select users, the foodtech major increased the fee to INR 3 for some users in Tier II cities this week.

While the fee was initially levied only on select users, the company told Inc42 that it would ultimately be applicable to all customers. However, the development is currently in the experiment stage.

It must be noted that Zomato has been trying and testing different ways to increase its revenue. It also became profitable in the June quarter of FY24.

Meanwhile, the lock-in period for investors who received Zomato shares following the Blinkit deal in August last year ended this week. As per reports, SoftBank is now looking to offload its shares in the company via block deals and book profit.

Shares of Zomato slumped 3% on Friday alone, ending the week at INR 90.94 on the BSE. However, the shares gained 1.7% this week.

The current support for the stock is at INR 88, said LKP Securities’ De. Till the time Zomato manages to sustain above this level, there is a chance that it will move towards INR 108-INR 110 in the short term.

However, if the stock goes below INR 88, it could tank further till INR 82, De added.

The post New-Age Tech Stocks Shine Amid Broader Market Weakness; EaseMyTrip Biggest Winner This Week appeared first on Inc42 Media.

With the Q1 FY24 earnings season coming to an end, Indian new-age tech stocks succumbed to the weakness in the broader domestic and global equity markets and witnessed a significant slump this week. 

A majority of new-age stocks, including Paytm, IndiaMart, Tracxn, Zomato, Cartrade Technologies, EaseMyTrip, and Nykaa, fell in a range of 0.1% and 10% this week. The decline in Nykaa and EaseMyTrip shares was largely driven by their Q1 financial results.

Nykaa also emerged as the biggest loser, declining 9.8% this week, hurt by its lower-than-expected quarterly earnings.

Despite pressure in the broader market, DroneAcharya, RateGain, ideaForge, Nazara Technologies, and PB Fintech rose this week, gaining in a range of 0.1% and over 5%. 

DroneAcharya once again emerged as the biggest winner, with its shares zooming 5.5% on the BSE following several business updates from the startup. The drone startup said it has entered into a memorandum of understanding (MoU) with a leading university in the Philippines to provide drone pilot training and drone data processing training to the local government units of the country.

Besides, DroneAcharya also won a tender from the Karnataka State Remote Sensing Applications Centre (KSRSAC) under which it would supply various drone systems and provide drone pilot training courses to the staff of the Karnataka Forest Department.

On the other hand, Nazara’s gains this week were led by the announcement of its $500K investment in Israel-based game developer Snax Games.

Meanwhile, the list of new-age tech stocks saw a new addition this week, as blockchain and IT development startup Yudiz Solutions got listed at a 12% premium at INR 185 apiece on the NSE SME platform.

In the broader market, Sensex fell 0.57% to 64,948.66 and Nifty 50 declined 0.61% to 19,310.15 this week. The market was shut on August 15 on the occasion of Independence Day.

“World equity markets, including India, are under the grip of a sharp rise in US bond yields which has led to currency depreciation in China and other emerging markets. This has prompted investors to park their funds in safe haven dollar securities by exiting risky equity assets,” said Amol Athawale, VP of technical research at Kotak Securities.

He said the consolidation phase in local markets could continue for some more time as worries over further interest rate hikes in the US and other key economies, high inflation and slowing growth in China would curb appetite for equity as an asset class in the near term. 

It must be noted that India’s CPI inflation surged to 7.44% in July from 4.87% in June, its highest level since April 2022.

Commenting on the outlook, Pravesh Gour, senior technical analyst at Swastika Investmart, said macroeconomic indicators, trends in global stock markets, and foreign institutional investors (FIIs) activities will be pivotal in shaping market trends in the coming days. 

Now, let’s take a detailed look at the performance of some of the new-age tech stocks this week.

The 16 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $34.45 Bn as against 15 stocks ending last week at $34.96 Bn.

The Worst Is Still Not Over For Nykaa

Helped by the improvement in market sentiment for new-age tech stocks, shares of Nykaa had been witnessing some improvement since May this year. However, its shares slumped once again this week, falling almost 10% on the BSE, as its Q1 FY24 earnings failed to cheer up investors.

The shares slumped to end the week at INR 131.9 on the BSE.

In The News For:

• Nykaa posted a net profit of INR 5.4 Cr in Q1, an 8.2% year-on-year (YoY) rise. While its beauty business continued to grow, Nykaa Fashion’s growth remained muted for another quarter.
• Nykaa will be excluded from the Nifty Next 50 and Nifty 100 indices from September 29.
• Brokerages remained divided on the stock after the Q1 results but the startup saw several price target cuts.

Commenting on the stock, Jigar S Patel, senior manager, technical research analyst at Anand Rathi, said that Nykaa is currently in a correction mode and it might fall further. The best price for buying the stock would be around INR 125-INR 127 level.

The stop loss for the stock is around INR 115 and the target is INR 160, he added.

Deep Discounts Hurt EaseMyTrip’s Bottom Line In Q1

Traveltech major EaseMyTrip on Monday (August 14) reported a 21.8% YoY decline in its profit after tax (PAT) to INR 25.9 Cr in Q1 FY24, which was also a 16% decline, sequentially.

The bottom line took a hit despite a 41.5% YoY jump in operating revenue to INR 124 Cr and the startup reporting a record quarterly gross booking revenue (GBR) of INR 2,371 Cr in Q1.

EaseMyTrip cited the discounts provided by it to its customers across segments from June 1-10, 2023 to celebrate its 15th anniversary as the reason for the fall in its profit.

Following the results, EaseMyTrip shares slumped 7.5% in the next three consecutive sessions in the week, ending Friday’s session at INR 37.36 on the BSE.

Anand Rathi’s Patel said that the stock looks a bit weak right now and might fall further till INR 30-INR 34 level, which would be the ideal price to buy the stock.

After this, the stock is expected to bounce back and might jump to INR 40-INR 41 in the coming weeks, he added.

RateGain Shares Touch A New All-Time High

Shares of RateGain have touched several record highs following its Q1 earnings, published last week. This week the stock touched an all-time high at INR 604.85 on Thursday (August 17).

Overall, the shares of the traveltech SaaS startup jumped 5.3% this week, making it the second biggest winner. It ended Friday’s session at INR 571.75 on the BSE as the shares fell 4.2% from Thursday’s close.

RateGain’s PAT almost tripled YoY to INR 24.9 Cr in Q1 FY24, while operating revenue jumped 79.8% YoY to INR 214.5 Cr.

Currently, RateGain is one of the few new-age tech stocks that is trading at a higher price than the listing price. Its shares are currently trading over 56% higher than their listing price.

However, Patel is of the opinion that it is not the right time to buy the stock. “Fresh buy will only get triggered around INR 520-INR 530 level,…from there, one can wait till the target of INR 620,” he said, adding that there is a possibility of a small correction till INR 520-INR 530.

The post New-Age Tech Stocks Slump Amid Weakness In Broader Market; Nykaa Biggest Loser This Week appeared first on Inc42 Media.

The change in investor sentiment continued to reflect in the performance of India new-age tech stocks for another week. However, due to a consolidation in the broader domestic equity market and some stock-specific reactions following Q1 FY24 results, new-age tech startups witnessed a mixed week on the bourses. 

Seven out of the 15 new-age tech stocks under Inc42’s coverage gained in a range of 0.3% to 17% this week. 

Travel SaaS startup RateGain emerged as the biggest winner, rising 16.9% on the BSE after its profit after tax (PAT) almost tripled year-on-year (YoY) to INR 24.9 Cr in Q1.

Paytm (up 8.6%), MapmyIndia (up 9.9%), and Fino Payments Bank (5.8%) were also among the gainers this week. Following its upbeat Q1 FY24 results, shares of CarTrade Tech also rose 3.6% this week.

However, after reporting muted Q1 earnings, ideaForge slumped almost 11% during the week, becoming the biggest loser.

DroneAcharya, PB Fintech, Nazara Technologies, Zomato, Nykaa, EaseMyTrip, and Delhivery also fell in a range of 0.1% to 9% on the BSE.

Among the benchmark indices, Sensex fell 0.61% to 65,322.65 and Nifty 50 declined 0.45% to 19,428.30 this week.

During the week, the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5% but hiked inflation projection for 2023-24 to 5.4%.

Commenting on the performance of the market during the week, Siddhartha Khemka, head of retail research at Motilal Oswal, said that domestic equities continued their weakness due to subdued global cues and hawkish commentary from the RBI. 

“In the absence of any major trigger and uncertain global cues, we expect the market to consolidate in the range. Investors on Monday would react to India’s FII (Foreign Institutional Investors) data,” said Khemka.

Amol Athawale, vice president of technical research at Kotak Securities, said that weak European and Asian market cues, coupled with concerns about China slipping into stagflation amid slackening demand, are making investors jittery and prompting them to offload in domestic equities. 

“With FII flows turning choppy this month so far, markets are struggling to maintain the upward bias amid rise in intra-day volatile trades,” Athawale added.

Before analysing the performance of the new-age tech stocks this week, let’s take a quick look at the financial health of these companies.

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

The 15 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $34.96 Bn as against $36.33 Bn last week.

Paytm Rallies After Share Transfer From Antfin

Shares of Paytm had witnessed a slight decline after reporting its Q1 FY24 results towards the end of last month. However, its shares rallied sharply after the fintech major’s announcement earlier this week that Vijay Shekhar Sharma would acquire Antfin’s 10.3% stake in the company. 

Paytm gained 8.6% this week on the back of the announcement and ended Friday’s session at INR 864.05 on the BSE.

Proxy firm Institutional Investor Advisory Services (IiAS) came out with a report following the transfer of shares, saying that Sharma, along with the equity holding of the family trust, is now in control of 24.3% of voting rights in the company.

“It’s time Vijay Shekhar Sharma formally signals that he remains in control. He needs to give investors the comfort that he is the promoter and not someone who is sitting in the shadows,” the IiAs said.

On the back of improving investors’ sentiment towards new-age startups, particularly, Paytm, Zomato, and PB Fintech, shares of Paytm have gained over 23% since June this year.

The stock is consolidating right now but it is showing positive consolidation, said Kotak Securities’ Athawale.

“Investors should still wait for a fresh breakout, which is around INR 890-INR 900 levels. If the market continues to correct then the stock may retrace towards INR 820-INR 810 levels,” Athawale said.

Nykaa’s Profit Rises

Nykaa on Friday reported an 8.2% YoY rise in profit after tax (PAT) to INR 5.4 Cr in Q1 FY24, which was also up 138% sequentially.

While the growth of the fashion business continued to lag during the quarter under review, Nykaa saw steady growth across other business segments.

The beauty and fashion ecommerce major’s gross merchandise value (GMV) rose 24% YoY to INR 2,667.8 Cr in Q1.

It must be noted that shares of Nykaa have been under pressure over the past few quarters on the back of its declining profit, despite its major peers seeing steady upward trends. It remains to be seen how the market reacts to the company’s Q1 performance in the coming week. Its shares fell 0.9% this week, ending Friday’s session at INR 146.25 on the BSE. 

Athawale said that Nykaa is also seeing a positive consolidation but investors should wait for the INR 153-INR 155 range breakout. If the stock trades above this level, there could be a possibility of further upside till INR 160-INR 165 in the short term.

On the flip side, if the stock falls to its biggest previous support, which is at around INR 143, then there is a possibility of short-term correction till INR 138-INR 137, he added.

ideaForge Biggest Loser

Shares of drone startup ideaForge plunged 10.8% to INR 985.95 on the BSE this week, touching the lowest level since its listing in July.

The fall in shares came after ideaForge reported over 54% YoY decline in profit after tax (PAT) to INR 18.9 Cr in Q1 FY24. The startup’s operating revenue also declined to INR 97.1 Cr in the quarter from INR 99.3 Cr in the year-ago period.

Though ideaForge saw its profit and revenue rise on a quarterly basis, the startup said its business performance was not immediately comparable on a quarterly basis.

The drone startup got listed on the stock exchange at a 94% premium to its issue price. The shares listed at INR 1,300 on the NSE and at INR 1,305.10 on the BSE.

After witnessing a sharp rally in the first few weeks of its listing, ideaForge shares have started witnessing a decline. Its shares are currently trading over 24% lower than the listing price.

The post New-Age Tech Stocks Witness A Mixed Week; RateGain Biggest Winner, ideaForge Slumps appeared first on Inc42 Media.

Foodtech giant Zomato reporting its first net profitable quarter this week seems to have completely turned the investor sentiment towards Indian new-age tech stocks. While it might be a bit too early to say if these stocks are out of the woods, it is clear that the market has started seeing the long-awaited positive signals from these companies.

Riding on the back of Zomato’s surprise delivery of profit, 11 out of the 15 new-age tech stocks under Inc42’s coverage gained this week. 

While Zomato jumped almost 10% this week, DroneAcharya rose 9.6%. PB Fintech soared 9.2%, while the likes of Nazara Technologies, Delhivery, and Paytm rose in a range of 0.3%-5% on the BSE.

However, despite an overall positive sentiment towards IT stocks in the domestic equity market, Tracxn Technologies slumped 10.5% this week after its weak Q1 FY24 earnings report. Fino Payments Bank, ideaForge, and EaseMyTrip also declined in a range of 1%-4% on the BSE this week.

Benchmark indices Sensex and Nifty 50 slumped earlier this week but regained their momentum on Friday to end the session in the green at 65,721.25 and 19,517, respectively. However, both the indices fell 0.7% in the week.

Commenting on the performance of the market, Siddhartha Khemka, head of retail research at Motilal Oswal, said domestic equities saw some respite on Friday after witnessing selling pressure in three consecutive sessions on the back of India’s services activity rising sharply to 62.3 – the highest level in 13 years.

“A niche sector like ecommerce was also in focus after Zomato reported an excellent set of numbers and turned PAT positive. Global markets remained cautious after the US reported poor service PMI data and US jobless claim data, thus increasing rate hikes bets,” said Khemka.

“Next week would be crucial from the domestic point of view as the Reserve Bank of India (RBI) is set to announce its interest rate decision. Thus, markets are likely to move in a broader range with some volatility,” he added.

Meanwhile, it is pertinent to note that Morgan Stanley upgraded India’s status to “overweight” this week while downgrading China to an “equal-weight” rating. The brokerage believes that India is poised for substantial and sustained economic growth at a time when the rest of the world is slowing down.

Arvinder Singh Nanda, senior VP of Master Capital Services, opined that the market will react to the upcoming RBI policy, inflation data, forex reserve data, ongoing Q1 FY24 earnings season, crude oil inventories, US inflation data, US Initial jobless claims, and UK GDP data in the coming week.

Amid a rebound in the Indian IPO market, another new-age tech stock, Yudiz, launched its public issue this week. The blockchain and IT development company will get listed on the NSE SME platform.

Before we further analyse the performance of the new-age tech stocks this week, let’s take a quick look at the financial health of these companies.

As evident, most of the listed new-age tech startups are now profitable or are marching ahead on their path towards profitability.

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

The 15 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $36.33 Bn as against $33.24 Bn last week.

Zomato Delights Investors 

Shares of Zomato surged 10.7% to INR 95.43 on the BSE on Friday, a day after the food delivery major reported its first-ever net profitable quarter, way ahead of its target and Street estimates, in Q1 FY24.

Zomato shares also touched their 52-week high of INR 98.39 in the early trading hours of the last session of the week. 

In The News For:

• Zomato reported its first profit after tax (PAT) of INR 2 Cr in Q1 versus a consolidated net loss of INR 186 Cr in the last year’s quarter. This was also a significant improvement from INR 188 Cr of net loss reported in the previous quarter – Q4 FY23.
• While a deferred tax of INR 17 Cr helped the company post the consolidated net profit, the growth in its food delivery business and operational efficiencies played a bigger role in helping it achieve profitability. 
• Zomato’s quick-commerce business Blinkit posted a slower sequential GOV growth in Q1 FY24, hurt by delivery partners’ strike and incessant rains in the northern part of the country.
• Zomato said it has a July to July appraisal cycle and the impact of it will be seen in employee costs in the next quarter – Q2 FY24. Meanwhile, the startup also approved INR 2.52 Cr shares as ESOPs to select employees this week. It remains to be seen how the company manages to maintain its profitability in the coming quarter and years.
• Zomato has now also started levying a platform fee of INR 2 per order for some users on its platform.

Zomato’s market capitalisation surged to $10 Bn (INR 81,871.18) this week. 

Several analysts raised their price targets (PTs) on Zomato following the impressive performance and now expect the stock to cross INR 100 mark. JP Morgan expects Zomato to evolve into a “triple engine profit machine” over FY24.

Speaking to Inc42, Ganesh Dongre, senior manager, technical research, at Anand Rathi, said that the resistance for the stock is currently at INR 125 while the downside support is at INR 85-INR 80.

“One should wait and watch this counter. If one wants to enter this, the comfortable zone would be INR 80-85,” he said, adding that the stop loss for the stock would be INR 75. “One can also buy on dips.”

Dongre said that the broader market is in a correction mode right now and Zomato can correct a bit in the short term from here on.

Delhivery Cuts Its Losses

Among the new-age tech startups under our coverage, logistics unicorn Delhivery is the only one right now that is loss-making both on adjusted EBITDA level and overall. However, the startup is also marching ahead towards its target of achieving breakeven.

Delhivery reported a 78% year-on-year (YoY) and 44% quarter-on-quarter (QoQ) decline in its net loss to INR 89.5 Crin Q1 FY24.

The startup also managed to bring down its adjusted EBITDA loss by 89% YoY to INR 25 Cr in the quarter. Express parcel, as well as part truckload (PTL) revenue, jumped in the quarter.

Helped by the rally in new-age tech stocks post Zomato’s earnings, Delhivery shares ended the week at the highest level since October 20, 2022.

After seeing extremely choppy trading sessions earlier in the week, the logistics startup’s shares jumped almost 6% on Friday to end the week at INR 421.5 on the BSE. Overall, Delhivery gained about 5% this week.

Anand Rathi’s Dongre said that a bigger rally is possible in the stock in the coming week, with it racing towards the INR 500 mark. The stop loss for the stock would be at INR 380, while the target would be around INR 460-INR 480 zone, he added.

Tracxn Becomes The Biggest Loser

Shares of market intelligence startup Tracxn Technologies nosedived in three consecutive sessions this week after the startup reported a sharp decline in its profit.

The startup on Tuesday (August 1) said its net profit nearly halved QoQ to INR 0.69 Cr in Q1 FY24, which was also an 18% decline compared to the profit in the corresponding quarter of last fiscal.

Operating revenue also fell 2.5% sequentially to INR 19.82 Cr in the reported quarter.

Tracxn shares plunged over 13% in three sessions ending Friday. The stock ended the week’s last trading session 4.1% lower at INR 75.26 on the BSE.

Overall, its shares plunged 10.5% this week.

Commenting on the stock, Dongre said that selling pressure is visible in the counter on the technical charts. Those looking to invest should wait till the share price comes down to INR 70.

The stop loss for the stock is at around INR 60. After correcting in the near term, it can again bounce back to INR 84-INR 85, Dongre added.

The post Zomato’s Maiden Profitable Quarter Fuels New-Age Tech Stocks Surge This Week appeared first on Inc42 Media.

Last week’s slump in Indian new-age tech stocks continued this week as well, as the broader domestic market saw another volatile week with Q1 FY24 financial results being the major drag.

Ten out of the 15 new-age tech stocks under Inc42’s coverage declined this week. Paytm emerged as the biggest loser, falling 9.6% on the BSE.

PB Fintech, EaseMyTrip, Nykaa, Delhivery, and ideaForge were among the other losers this week, falling in a range of 0.4% to over 5%.

However, Fino Payments Bank rallied this week, with its shares touching their 52-week high and hitting the upper circuit on Friday (July 28). The stock emerged as the biggest gainer this week, soaring almost 19% on the BSE.

Zomato also rose over 8% this week, becoming the second-biggest winner. At $9.1 Bn (INR 74,518.82 Cr), the foodtech major currently has the highest market cap among the listed new-age tech stocks. 

Zomato has also regained its place among the 100 top companies by market cap on the BSE, joining the likes of Tata Power, Tata Consumer Products, Apollo Hospitals, Bharat Petroleum Corp, and several other conglomerates.

Meanwhile, RateGain, Nazara, and MapmyIndia were the other gainers of the week – rising about 1.7% to 2.7% on the BSE.

After touching record highs last week, benchmark indices Sensex and Nifty 50 fell 0.8% to 66,160.20 and 0.5% to 19,646.05, respectively, this week.

“The recent correction of the domestic market can be attributed to several headwinds, including mixed Q1 results, a reversal in FII activity, a rising dollar index and US bond yields, and an increase in crude oil prices,” said Vinod Nair, head of research at Geojit Financial Services.

Meanwhile, the better-than-expected US Q2 GDP data also impacted the mood in the domestic market as it suggested the likelihood of another rate hike, he added.

In the coming weeks, Q1 earnings reports will continue to play a major role in driving market sentiment.

Besides, various data reports in the US, monthly sales figures of Indian auto companies, and developments during the Monsoon Session of the Parliament will also be significant points of interest for investors and traders alike, said Pravesh Gour, senior technical analyst at Swastika Investmart.

The 15 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $33.24 Bn as against $34.35 last week.

Fino Surges Ahead Of Q1 Results 

Shares of Fino Payments Bank jumped almost 18% to INR 343.9 on the BSE on Friday, ahead of its Q1 FY24 results, which were published after market hours.

Its shares also hit a 52-week high at INR 350.15 on Friday. Overall, the shares were up almost 19% this week.

Fino reported an 85% year-on-year (YoY) jump in profit after tax (PAT) to INR 18.7 Cr in Q1, while revenue increased 21% YoY to INR 348.3 Cr.

However, the company’s PAT declined 15% from INR 22.1 Cr reported in Q4 FY23.

Besides, Fino said that it would also apply for a Small Finance Bank (SFB) licence.

The stock looks very bullish and can now move upwards to INR 430 in the coming weeks, said Rupak De, senior technical analyst at LKP Securities. The support for the stock is at INR 330, he added.

Paytm Slumps 9% Following Q1 Earnings

Shares of fintech giant Paytm slumped in all five sessions to end the week at INR 762.75 on the BSE. Overall, the shares fell 9.6% during the week, after the company released its Q1 FY24 results last Friday (July 21).

Paytm reported a net loss of INR 358.4 Cr in the June quarter of FY24, registering a 44.5% decline YoY but a 113% increase sequentially.

On the other hand, Paytm’s operating revenue stood at INR 2,342 Cr in Q1, which was a 39% increase YoY but a mere 0.3% rise quarter-on-quarter.

Shares of Paytm were on a rise since March this year as investors became bullish due to signs of the company reaching its overall profitability target. However, the stock is likely to see further correction following the sharp decline this week. 

“As per the daily chart, the stock might fall further from the current level. On the lower end it might fall down towards INR 700,” LKP Securities’ De said.

The resistance for the stock is at INR 790. The stock is likely to continue to decline till it doesn’t regain this level, he added. 

However, most brokerages continue to remain bullish on Paytm. ICICI Securities said in its research report after the results that it expects the company to achieve profitability in FY25.

“The positive cycle of customer growth, retention and cross-sell as shown by the company is going to build confidence and valuation multiples,” it said.

CLSA increased its target price on Paytm to INR 1,050 from INR 850 earlier. 

However, the brokerage also highlighted the increase in the number of employees at the company. “Fixed costs, ex-ESOP, were up 14% QoQ as the company continues to increase manpower. We understand the need to capture growth opportunities, but we struggle to understand what the company will do with so many employees in five years,” it said.

Nazara Reports Net Profit of INR 20.9 Cr In Q1

Gaming unicorn Nazara Technologies reported a 31% YoY jump in net profit to INR 20.9 Cr in the Q1 FY24. Operating revenue also increased 14% to INR 254.4 Cr.

Ahead of its quarterly results, which were published on Friday after market hours, Nazara shares showed sideways movement. Overall, the stock gained 1.7% this week to end Friday’s session at INR 664.55 on the BSE.

Nazara shares, like Paytm, were on an uptrend since March and were trading above INR 700 level earlier this month. However, the stock has seen some correction after the GST Council decided to levy a 28% GST on real-money gaming earlier this week. 

LKP Securities’ De said that shares of Nazara are currently in a consolidation phase. The support for the stock is at INR 640. 

If it falls below that level, then the stock can correct further. Otherwise, the stock is likely to show a sideways pattern and might go up till INR 720 on the higher end, before coming down to INR 640, he added.

The post New-Age Tech Stocks Slump This Week As Bears Dominate Broader Market; Paytm Biggest Loser appeared first on Inc42 Media.

Indian new-age tech stocks saw sharp corrections this week as the broader equity market crashed on Friday, after trending higher throughout the week, following disappointing Q1 FY24 performances of tech major Infosys and Hindustan Unilever Limited (HUL).

Of the 15 new-age tech startups under Inc42’s coverage, 10 fell in a range of 0.3% and over 5% this week. Tracxn Technologies was the biggest loser (down 5.5%) on the BSE.

Meanwhile, Zomato and ideaForge fell 2.6% each, while Paytm and CarTrade Technologies declined over 0.9% each on the BSE. Nazara Technologies and Delhivery fell over 2% during the week, while shares of EaseMyTrip and DroneAcharya declined over 4% on the BSE.

Despite the overall downward trend, IndiaMart InterMESH emerged as the biggest winner this week. The stock soared 10.6% on the back of positive financial results for the June quarter results share buyback announcement.

Besides, Fino Payments Bank, MapmyIndia, PB Fintech, and RateGain also rose in a range of 0.9% to 6% this week. 

Benchmark indices Sensex and Nifty 50 touched new record highs this week as they ended Thursday’s session at 67,571.9 and 19,975.15, respectively. However, Sensex fell 1.31% to 66,684.26 on Friday, while Nifty 50 crashed 1.17% to 19,745. 

Overall, both Nifty50 and Sensex gained a little over 0.9% in the week.

“Overnight fall in tech-heavy Nasdaq triggered a wave of massive correction in local software stocks led by Infosys, which slashed the revenue growth guidance for the rest of the year due to sharp deterioration in discretionary spending by the clients. The record upsurge in the markets in such a quick time was already raising concerns of expensive valuations, and hence investors took this opportunity of weak US cues to prune their holdings, although India’s fundamentals remain on strong footing,” said Amol Athawale, vice president of technical research at Kotak Securities.

Arvinder Singh Nanda, senior vice president of Master Capital Services, opined that the markets will take further cues from the ongoing Q1 FY24 earnings season, domestic and global macroeconomic data, global market trends, crude oil prices, Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) activities. 

Now, let’s dig deeper into understanding how the new-age tech stocks performed this week.

The 15 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $34.35 as against $34.38 Bn last week.

IndiaMart Shines 

Shares of IndiaMART InterMESH rose 10.6% this week to end Friday’s session at INR 3,152.1 on the BSE. 

The stock also touched a fresh 52-week high of INR 3,205 during intraday trading on Friday after the B2B ecommerce major published its Q1 FY24 results on Thursday (July 20).

In the News For:

• IndiaMART reported a 77.9% year-on-year (YoY) jump in its net profit to INR 83.1 Cr in the June quarter of FY24 from INR 46.7 Cr posted in the corresponding quarter of the previous year. The startup’s operating revenue also grew 26% to INR 292 Cr during the quarter
• IndiaMART’s board also approved the proposal to buy back 12.5 Lakh shares for INR 4,000 each for up to INR 500 Cr. 

Kotak Securities’ Athawale believes that after this week’s rally, INR 3,325-INR 3,330 is the immediate resistance for the stock. Meanwhile, INR 2,925 is the immediate support level.

“We have to wait for a breakout confirmation. If the stock starts consistently trading above INR 3,225, it will continue to rally in the near future. Otherwise, a range-bound activity will continue,” said Athawale.

Brokerage JM Financial said in a research note that it expects the stock to continue to trade at “punchy” valuations on the back of strong earnings visibility. “We also expect the market to cheer the company’s intention to return excess cash through the buyback route,” it said. 

The company’s shares are trading 45.97% higher year to date (YTD), considering the lowered denomination post its recent bonus share issue.

Paytm’s Loss Widens Sequentially

After a significant rally last month, Paytm shares have seen a sideway movement so far this month. Ahead of its June quarter results, which were published on Friday, Paytm shares ended at INR 843.55 on the BSE. Overall, the stock fell 0.9% this week.

Before we analyse further, let’s understand what can affect Paytm’s shares next week.

In The News For:

• After market hours on Friday, Paytm reported a 44.5% YoY decline in its consolidated net loss to INR 358.4 Cr in Q1. However, the loss more than doubled on a sequential basis. The fintech giant’s operating revenue jumped 39% YoY to INR 2,342 Cr in the quarter.
• Despite ESOP costs continuing to be one of the major pain points for Paytm, as it strives to achieve net profitability, the startup announced an additional 1.7 Mn employee stock options this week.

The results, along with the broader market condition, will decide Paytm’s share movement in the coming week, although the stock’s texture is bullish, said Athawale.

“After a strong rally, the stock is consolidating. So, the range-bound texture is likely to continue. On the higher side, INR 875 would be the immediate resistance for the stock. On the lower side, INR 800 would be the immediate support,” he said.

However, if Paytm breaks the INR 875 level, there are chances that the stock can reach INR 900-INR 925 level, he added.

Zomato Tanks

Zomato is one of the new-age tech stocks that has been rallying since April this year. Last week, the shares of the foodtech major had touched a 52-week high of INR 84.5, as investor sentiment turned positive on new-age tech stocks.

However, the stock slumped in four straight sessions till Thursday this week, before recovering on Friday. Zomato ended Friday’s session up 3.4% at INR 80.31 on the BSE. Overall, the stock corrected 2.6% this week.

We must note that in its attempt to turn profitable, the startup has shut down several of its international businesses over the last few months. In continuation of these efforts, Zomato, in an exchange filing on Friday, said that Zomato Media Portugal, Unipessoal Lda (“ZM Portugal”), a wholly-owned subsidiary of the company situated in Portugal, has initiated the process of liquidation.

Commenting on the stock, Kotak Securities’ Athawale said it is showing a strong uptrend. The immediate support for the stock is around INR 77. If it sustains above that, then INR 85-INR 87 would be the immediate target, he added.

The post New-Age Tech Stocks Lose Steam As Broader Market Stumbles; IndiaMART Biggest Gainer This Week appeared first on Inc42 Media.

New-age tech stocks rallied this week on the back of the rally in the broader Indian equity markets this week.

Of the 15 new-age tech startups under Inc42’s coverage, nine rallied this week in a range of 0.08% to over 17% on the BSE. MapmyIndia emerged as the biggest winner with a gain of 17.4% during the week.

Meanwhile, Zomato jumped 12.6%, while EaseMyTrip also recovered significantly as its shares rose 6.7%. Delhivery and PB Fintech rose over 5.6% each during the week. Besides, CarTrade Technologies, IndiaMart InterMESH, Nykaa, and Paytm also rose.

On the other hand, Nazara Technologies emerged as the biggest loser this week. The stock fell 7.7% during the week, hurt by the GST Council’s decision to levy 28% tax on real-money gaming on full face value.

ideaForge, which made a bumper stock market debut last week, saw its shares slide 7.1% this week, while DroneAcharya fell 5.4%.

Fino Payments Bank, Tracxn Technologies, and RateGain were the other losers this week.

Benchmark indices Sensex and Nifty 50 touched new record highs this week at 66,060.9 and 19,564.5, respectively. Sensex ended Friday’s session 0.77% higher, while Nifty 50 gained 0.78%.

Overall, both the indices gained 1.2% during the week.

“The index touched yet another new high… Global cues too were supportive following the release of another soft inflation data. In the US, the PPI inflation rose only 0.1% MoM in June, leading to hopes that Fed may soon take a pause,” said Siddhartha Khemka, head of retail research at Motilal Oswal.

“Going ahead, the market would keenly watch out for merged HDFC Bank results on Monday which now holds 29% weightage in Nifty Bank. As we fully enter into the quarterly earnings season, stock specific action would pick up steam. Moreover, expectation of good quarterly results, consistent buying interest of FIIs and good progress on the monsoon front would keep the overall trend of the market positive,” he added.

Meanwhile, Pravesh Gour, senior technical analyst at Swastika Investmart, said that the Monsoon Session of Parliament, which would commence on July 20, would play a crucial role as several bills, including the Personal Data Protection Bill and the Forest Bill, are to be presented. 

Now, let’s understand better how the new-age tech stocks performed this week.

The 15 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $34.38 as against $33 Bn last week.

Nazara The Biggest Loser

Shares of Nazara Technologies, which have been seeing a sharp rally since May this year, plunged 7.7% to INR 666.75 on the BSE this week, making it the biggest loser.

The shares were impacted by the government’s decision to levy 28% GST on online gaming, along with horse racing and casinos. The online gaming sector has strongly criticised the move, saying it would make the industry ‘disappear’,

After rising on Monday, ahead of the GST Council meeting, Nazara shares declined in the next three consecutive sessions.

Meanwhile, Nazara came out with a statement on Wednesday saying the 28% GST rate would have minimal impact on its overall revenue as it would apply only to the skill-based real money gaming segment of our business. 

As per the company’s statement, skill-based real-money gaming contributes only 5.2% to its consolidated revenue.

Its shares ended Friday’s session marginally higher.

The company was also a signatory to a letter written by over 100 gaming startups and a few industry bodies, released on Saturday, urging the government to reconsider the decision to levy 28% GST on full value.

Commenting on the stock, Jigar S Patel, senior manager, technical research analyst, at Anand Rathi, said it looks positive on the charts. 

The buying range for the stock would be around INR 650-INR 670, while support for the stock is at around INR 625. The stock can reach INR 720-INR 725 level in the coming days, he added.

Helped by an overall positive sentiment towards the new-age tech stocks, Nazara shares are trading 15% higher year to date (YTD).

Zomato Touches Fresh 52-Week High 

Shares of foodtech startup Zomato saw a fresh rally this week as they gained in all five sessions. The shares hit a fresh 52-week high of INR 84.5 during intraday trading on Thursday. 

Zomato was the second biggest gainer this week among the new-age tech stocks, rising 12.6%. It ended Friday’s session at INR 82.47 on the BSE.

Shares of the food delivery giant have seen a significant recovery since March this year on expectations of it reaching its net profitability target. Overall, Zomato is up 39% YTD.

With a market cap of INR 70,752.56 Cr, Zomato is now among the top 100 stocks in terms of market cap on the BSE. 

Anand Rathi’s Patel expects Zomato to continue its upward trajectory. “The buying range for the stock is INR 81-INR 83 and the stop loss is INR 75 on daily closing basis,” he said, adding that Zomato’s upside can be till INR 91-INR 92.

Meanwhile, the startup is doubling down on its branding. Recently, it launched a new campaign with a chat show series hosted by founder and CEO Deepinder Goyal, which would feature restaurateurs as interviewees.

Delhivery Allots Fresh ESOPs

Delhivery on Tuesday announced allotting 17,28,427 shares as Employee Stock Option Plans (ESOPs). Consequent to the allotment, the paid-up share capital of the company stands increased to INR 73.3 Cr from INR 73.1 Cr, said the logistics unicorn.

This week, Delhivery shares gained 5.7% to end Friday’s session at INR 415.6 on the BSE. After a fall in two straight sessions till Wednesday, the shares jumped 5.6% in the next two sessions.

Meanwhile, Emkay Global Financial Services initiated its coverage on Delhivery this week with a ‘buy’ rating and price target (PT) of INR 465. The PT implies an upside of almost 12% to the stock’s last close.

The brokerage expects the logistics major to clock revenue CAGR of 24% over FY23-FY26 to reach 7.8% adjusted EBITDA margin and achieve profit after tax turnaround in FY26.

“Delhivery provides an infallible opportunity to ride the long-term structural growth story in India’s logistics space,” said the brokerage.

The initiation came days after Kotak Institutional Equities downgraded Delhivery to ‘reduce’ rating from a ‘buy’ rating, and postponed the cash flow break-even estimate for the company to FY27.

Commenting on the stock, Patel said that it looks bullish on technical charts. 

The buying range for the stock would be INR 410-INR 420, while stop loss should be INR 399. The stock can rally till INR 440-INR 445 in the coming days, he added.

The post New-Age Tech Stocks Ride The Bull Run In Broader Market, Nazara Stumbles On GST Shock appeared first on Inc42 Media.

New-age tech stocks saw another mixed week amid the fluctuations in the broader domestic equity market. However, the underlying sentiment remained strong.

Drone startup ideaForge made a stellar debut on the bourse on Friday (July 7), listing at a premium of 94% to its IPO price and becoming the first new-age tech startup to go public in 2023.

Of the other 14 new-age tech stocks under Inc42’s coverage, eight gained this week. Tracxn Technologies emerged as the biggest gainer (up 12%).

Besides, Fino Payments Bank, PB fintech, RateGain, Delhivery, Cartrade Technologies, EaseMyTrip, and MapmyIndia gained in a range of 0.7 and 7% on the BSE this week.

On the other hand, Nykaa turned out to be the biggest loser this week by falling around 5% on the BSE. Zomato, Paytm, DroneAcharya, Nazara, and IndiaMart InterMESH also declined between 0.2% and over 2%.

Benchmark indices Sensex and Nifty 50 touched new record highs this week at 65,785.64 and 19,497.3, respectively, on Thursday. However, both the indices fell on Friday due to profit booking on weak global cues. While BSE ended the week at 65,280.45, NSE closed at  19,331.8. 

Overall, Sensex gained 0.87% and Nifty gained 0.74% this week.

“Globally, sentiments turned sour after strong US private jobs data raised the probability of interest rate hikes by the Fed in its upcoming meeting. On the domestic front, markets are witnessing profit booking at a higher level after seeing a run-up of more than 4% in the last eight trading sessions,” said Siddhartha Khemka, head of retail research at Motilal Oswal.

Khemka expects markets to sustain the current momentum in the coming days as stock-specific action picks up with the onset of the Q1 FY24 earnings season. India’s upcoming retail Inflation data would also provide some cues.

Meanwhile, Santosh Meena, head of research at Swastika Investmart, believes that volatility may increase amid Q1 earnings and rising US bond yields. HCL Tech, TCS, and Wipro are set to report their earnings next week but the predictions for IT companies in Q1 appear bleak, he said.

Now, let’s take a deeper look into the performance of some of the new-age tech stocks this week:

The 15 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $33 Bn. Last week, 14 of them had ended the week with an aggregate market cap of $32.5 Bn.

Nykaa Continues To Fall 

Shares of beauty and fashion ecommerce major Nykaa fell 4.9% to end the week at INR 140.8 on the BSE. 

While the shares rose slightly during the first session of the week, they fell sharply in the next two sessions. After a slight recovery again on Thursday, Nykaa shares fell 2.2% on Friday to end the week in red.

The slump on Friday came despite its bullish operating performance update for Q1 FY24. Nykaa on Friday said it expected to report year-on-year (YoY) consolidated revenue growth in the mid-twenties during the quarter. 

Despite a slowdown in discretionary spending, its beauty and personal care (BPC) category and fashion business witnessed growth, the company said.

Though Nykaa’s fashion business has been under pressure and the company’s overall profit also witnessed a downfall in the past few quarters, brokerages have largely been bullish on its long-term trajectory.

While Paytm, Zomato, PB Fintech, and Delhivery, among others, have witnessed a significant improvement in their stock performance this year, shares of Nykaa continue to remain volatile. Its shares are down over 9% year to date.

The stock has support at INR 138 and might plunge further next week, said Rupak De, senior technical analyst at LKP Securities. 

“If the shares fall below INR 138, then they might drop further down towards INR 133,” he said, adding that it could move toward INR 146-INR 147 level if it sustains above INR 140 next week. 

Paytm’s Loan Disbursals Surge In Q1 

Paytm reported its monthly loan disbursement update this week. Its loan disbursals surged 167% YoY to INR 14,845 Cr during the April-June quarter and the number of loans disbursed also rose 51% to 12.8 Mn.

However, Paytm’s loan disbursals in the month of June declined 5.02% to INR 5,227 Cr and the number of loans fell 2.27% to 4.3 Mn.

Shares of the fintech giant fell about 2% this week. On Friday alone, the shares declined 2.2% to end the week at INR 850.7 on the BSE.

Meanwhile, competition for Paytm is rising across its existing business verticals. Recently, PhonePe launched point-of-sale (PoS) devices to enable merchants to accept payments via debit cards, credit cards, and UPI, taking on Paytm and others.

LKP Securities’ De said that if Paytm shares sustain above INR 844, then they can move up towards INR 870.

Meanwhile, Motilal Oswal further increased its price target on Paytm to INR 1,050 from INR 865 earlier and said that the startup is on track to report EBITDA breakeven in H2 FY25.

ideaForge’s Bumper Debut

Shares of drone startup ideaForge listed on the stock exchanges this week at a whopping premium of 94%. 

The IPO had an issue price band of INR 638-INR 672. The shares listed on the NSE at INR 1,300, a premium of 93.45% to the issue price. On the BSE, the shares listed at a premium of 94.21% at INR 1,305.10 apiece.

A total of 10.4 Mn shares of ideaForge were traded on the first day of its public listing. 

Speaking about the stellar market debut, Ankit Mehta, CEO of ideaForge, said in a statement that the milestone represented a significant achievement for the company.

However, some analysts are of the opinion that the high valuation the startup has received with its listing might not sustain.

Anubhuti Mishra, equity research analyst at Swastika Investmart, said that while the IPO was a great opportunity for investors, it is recommended that investors book profits and exit their positions. 

Mishra cited the high valuation and business-related risks as the reason for this recommendation. 

It must be noted that the drone sector is an emerging one. Consequently, regulations around the sector are also evolving, which continues to be a major risk factor for the startup as well as its peers. Besides, ideaForge’s profit after tax (PAT) declined to INR 32 Cr in FY23 from INR 44 Cr in the previous fiscal.

Though it is a profit-making venture, like most other new-age startups, ESOPs contribute a major chunk to its expenses. 

The post Mixed Week For New-Age Tech Stocks; ideaForge Makes Stellar Debut, Nykaa Biggest Loser appeared first on Inc42 Media.

Indian new-age tech stocks saw moderate growth for the second straight week despite a bull run in the broader domestic equity market.

Of the 14 new-age tech startups under Inc42’s coverage, nine saw their shares gain this week in a range of 0.9% to a little over 7%. Among these, PB Fintech emerged as the biggest winner by surging 7.4% on the BSE.

Nazara Technologies gained 5.6% this week, while Paytm and RateGain rose over 3% each. Fino Payments Bank, Tracxn Technologies, and Zomato gained over 1% each, while Delhivery was up 2% and CarTrade Technologies up 0.9%.

On the other hand, EaseMyTrip continued to slump and was the biggest loser this week, falling 3.9%. Besides, Nykaa, DroneAcharya, MapmyIndia, and IndiaMart InterMESH also declined between 0.6% to 2.3% on the BSE.

Benchmark indices Sensex and Nifty 50 touched record highs at 64,718.56 and 19,189.05, respectively, on Friday. This week, Sensex gained 2.76% and Nifty gained 2.8%. 

Higher inflow from foreign institutional investors (FIIs), revival of monsoon, and the positive impact of the merger of HDFC and HDFC Bank were among the reasons for the rally in the broader market this week, said Prashanth Tapse, senior VP (research), Mehta Equities.

Though new-age tech stocks had two back-to-back mixed weeks after three straight weeks of significant gains, the investor outlook seems to be positive on these companies now. 

In fact, drone startup ideaForge saw its IPO getting subscribed 106X, with the issue witnessing high demand from across the board. ideaForge’s IPO opened on June 26 (Monday) and closed on June 30 (Friday).

Arvinder Singh Nanda, senior vice president of Master Capital Services, said, “The primary market is back in action after a period of lull, with a flurry of IPOs in the pipeline. Investors are kept busy as not just the mainboard but also many SME IPOs are hitting the market.”

“In the coming days, India’s manufacturing and services PMI data will be in focus, Globally, Europe, the UK and the US will also be sharing their manufacturing and services PMI numbers. US’ initial jobless claims, non-farm payrolls, India’s forex reserve data will be the key events that will drive the market next week,” Nanda added.

Now, let’s take a deeper look into the performance of some of the new-age tech stocks this week:

The 14 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $32.5 Bn as against $32.1 Bn last week.

PB Fintech Touches 52-Week High This Week

On Monday, shares of fintech major PB Fintech gained 9% during intraday trading to touch its 52-week high of INR 708 on the BSE following a meeting of the company’s officials with analysts.

Gaining for the second straight session, the shares closed at INR 717.05 on Tuesday, the highest level since mid-April last year. However, the stock shed some of the gains in the next two sessions to end the week at INR 697.6. Overall, the shares gained 7.4% this week.

Several brokerages emphasised their confidence in the startup’s tech capabilities and data, which are expected to keep boosting its insurtech business Policybazaar.

In a research note, Kotak Institutional Equities said that the meeting reinforced the analysts’ conviction on PB Fintech’s domain capability, which is expected to keep it ahead of peers.

Speaking about the stock, Amol Athawale, deputy vice president, technical research at Kotak Securities, told Inc42 that it is currently looking positive on technical charts. For short-term traders, INR 660 level or 20-day simple moving average (SMA) is the immediate stop loss level.

Above that level, the stock is likely to continue its uptrend till INR 770-INR 775 in the near-to-medium term, he said.

It must be noted that shares of PB Fintech are trading almost 56% higher year to date.

Zomato’s New Features

Zomato, which has seen its stock rally on the bourses since the start of April and positive commentary from analysts, introduced multiple new features this week.

In The News For:

• On Friday, the foodtech major introduced ‘Zomato Food Trends’, which would help restaurant partners make data-driven decisions based on insights such as demand and supply gaps, price distribution and demand trends. Zomato Food Trends is also free of cost and an open platform accessible to the general public.
• Besides, the food delivery startup has now started allowing its users to make multiple carts at the same time. Earlier, the app allowed a user to update the cart from a single restaurant only.
• Jefferies’ Christopher Wood is reportedly set to again increase his investment in Zomato by a percentage point.

Competition Watch:

• Amid Zomato’s announcement of new features, Swiggy also unveiled a new feature, WhatTo Eat, which would allow users to explore options based on their moods and cravings. 
• The Open Network for Digital Commerce (ONDC) is bolstering its capabilities by onboarding new players on its platform. Meanwhile, Google Cloud announced the launch of an accelerator programme for the government-backed platform, which might gradually emerge as a key competitor for Zomato and Swiggy.

Shares of Zomato made modest gains this week, rising 1.3% to end Friday’s session at INR 75.07 on the BSE.

Commenting on the stock, Athawale said that while the stock looks positive, it is slightly in the overbought zone. 

“We can expect a range-bound activity in the near future. The immediate support for the stock is 20-day SMA. On the higher side, INR 81-INR 82 would be the profit booking area for the short-term traders,” said Athawale, adding that buying on dips and selling on rallies would be the ideal strategy for trading Zomato.

Paytm Gets A Downgrade From Macquarie 

Brokerage Macquarie once again downgraded Paytm to ‘neutral’ rating from ‘outperform’, citing competitive and regulatory risks.

Despite the rating downgrade, shares of Paytm continued to rally and ended the week 3.2% higher. 

Paytm gained 2.2% Friday alone, ending the week at INR 868.05 on the BSE. It is pertinent to note that the rally followed Paytm’s parent One97 Communications Limited’s announcement about a partnership with the largest retail NBFC in India, Shriram Finance Limited. 

“Through this partnership, Shriram Finance’s products will be made available on Paytm’s platform digitally to further expand access to credit and drive financial inclusion in the country,” the fintech giant said.

Meanwhile, Paytm informed the stock exchanges on Saturday (July 1) that Vivek Kumar Mathur, COO of Elevation Capital, has resigned from its board, effective June 30.

Athawale said the stock looks bullish in the short-term. Its immediate support is at around INR 810-INR 820, while immediate resistance for the stock is around INR 910-INR 915. 

The post New-Age Tech Stocks Witness Another Mixed Week, PB Fintech Biggest Winner appeared first on Inc42 Media.

After a three-week winning streak, new-age tech stocks hit a slight bump this week as market volatility weighed heavily on the bourses. This mirrored the larger negative sentiment that gripped the overall Indian markets after all sectors emerged in the red. 

Nine out of 14 startups under Inc42’s coverage felt the impact while the remaining held their ground. Topping the charts this week was deeptech startup DroneAcharya, which made hefty weekly gains in excess of 15%. 

Following its lead were Fino Payments Bank, MapmyIndia and Rategain, which rose 12.1%, 4.61% and 2.9%, respectively, during the week. 

Meanwhile, CarTrade Tech was the biggest loser of the week, falling 7.18% week-on-week, followed closely by Paytm, down 6.8%. 

Tracxn and EaseMyTrip emerged as the third and fourth biggest losers, respectively. Joining the downward spiral was IndiaMART, which staggered 2.09% on the back of its ex-bonus issue.

Overall, Indian markets sank this week as Federal Reserve chairman Jerome Powell warned of more rate hikes in the future. Delayed monsoons and the Bank of England’s surprise rate hike further aggravated the matter and dampened market sentiments. 

Benchmark index Sensex fell 0.73% to end the week at 62,979.37 points while Nifty50 shed 1.01%, concluding the week at 18,665.50 points. All sectoral indices slipped into the red even as markets saw no major activity from foreign institutional investors (FIIs).

“… the broader market saw a sharp correction in the last two sessions after a period of strong outperformance. As we enter a new week, the market is expected to lack clear cues, but the expiration of June’s F&O contracts may introduce some volatility as traders roll over their positions,” said the head of research at Swastika Investmart Santosh Meena.

He added that the movement of monsoons will be ‘crucial’ to the performance of markets and investors will also keep a close eye on crude oil prices, the dollar index, US bond yields as well as any potential stimulus package from China. 

Now, let’s delve deeper into the performance of some of the new-age tech stocks that made headlines this week:

Cumulatively, the 14 new-age tech stocks under Inc42’s coverage wrapped up the week with a total market capitalisation of $32.1 Bn against $32.44 Bn last week, and $31 Bn the week before. 

Delhivery Bears The Brunt

After notching up a seven-month high last week, logistics giant Delhivery took a major hit this week as Carlyle Group-owned CA Swift Investments offloaded its entire stake in the startup. 

The Group sold 1.84 Cr shares via bulk deals, totalling INR 709.5 Cr, which, as per estimates, helped the investor pick up a handsome 2.7X return. However, this hit the stock, which closed 2.65% lower this week. 

However, big names such as Norges Bank, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs, and Saudi Central Bank were among the 34 institutional investors which lapped up the shares sold by Carlyle Group. 

Despite the tumble this week, analysts continue to remain bullish on the stock. Speaking with Inc42, senior manager and technical research analyst at Anand Rathi Jigar S Patel said that support for Delhivery could bounce from INR 370 currently to the INR 400-410 level next week. 

The stock’s stop loss would be around INR 345, he added.

The stock closed at INR 373.45 on the BSE even as the company’s market capitalisation hovered around the $3.33 Bn mark. Despite gaining some ground in the past few months, Delhivery continues to lag behind its bumper IPO listing last year when it soared to a valuation of $5 Bn.

DroneAcharya Continues The Dream Run

It was another bumper week for drone startup DroneAcharya as the stock continued its upward journey. Despite the ongoing volatility gripping the market, the week saw the scrip gain 15.55% as retail investors bought shares in heavy numbers, emerging as the highest gainer this week.

The week opened to a slow start as the stock stayed steady for the first two sessions, closing at around INR 160 on Tuesday. On Wednesday, the share price took a sudden jump, gaining INR 16 to close at INR 176. Eventually, the stock closed the week at INR 173.90. 

The jump came even as its competitor ideaForge prepares for its IPO, which would open on June 26. 

DroneAcharya was listed on the BSE SME platform in December 2022 at INR 102, a premium of 90% to its listing price. At its current levels, the drone manufacturer continues to be way ahead of its new-age tech peers, with its share prices trading 70.5% above its listing price.

However, Anand Rathi’s Patel believes that the trend for DroneAcharya is largely positive, adding that the upside for the stock is expected around INR 200 with a stop loss of INR 150. 

The company’s market cap currently stands at INR 417.16 Cr ($0.05 Bn).

A Gloomy Week For EaseMyTrip 

After paring some losses last week, traveltech platform EaseMyTrip again returned to the red this week. The stock opened at INR 43.6 and stayed steady for the next four trading sessions. Subsequently, the share price tanked on the last trading day and closed the week at INR 42.12, down 3.35% from the previous week. 

The traveltech platform emerged as the fourth biggest loser of the week. 

Anand Rathi’s Patel told Inc42 that the company continues to be on a ‘slightly weak’ footing. He further expects more correction for the startup till INR 39-42 levels.

The target price is slated to be around INR 46-47 levels and stop loss is said to hover around the INR 35 mark.

EaseMyTrip concluded the week with a market cap of $1.01 Bn.

The post Three-Week Winning Streak Ends As New-Age Tech Stocks Tumble This Week appeared first on Inc42 Media.

After a lull of over a year, the worst seems to be over for new-age tech stocks as they continue to rally on the back of positive sentiment in the broader equity market and stock-specific actions.

Eleven out of the 14 new-age tech stocks under Inc42’s coverage gained in a range of 0.4% to over 10% this week. Delhivery emerged as the biggest winner this week by gaining 10.1% on the BSE, followed closely by Paytm with a gain of 9.9%. Nazara Technologies also rose 9.3%, while Tracxn Technologies and Nykaa gained 8.7% and 4.1%, respectively.

However, after ending the past four weeks in the green, Zomato shares slumped a little over 4% this week. The food tech giant emerged the second-biggest loser this week after CarTrade Technologies, which fell over 7% on the BSE. 

RateGain Technologies (down about 2%) is the third loser of the week among the new-age tech stocks.

In the broader market, benchmark indices Sensex gained 1.21% to 63,384.58 while Nifty50 rose 1.41% to end the week at 18,826. In fact, all the sectoral indices gained this week, except Nifty Bank. Mid- and small-cap companies are also witnessing a sustained momentum for the last few weeks. 

Commenting on the performance of the market, Vinod Nair, head of research at Geojit Financial Services, said, “Both domestic and global markets have gone through a data-loaded week. The sustained flow of better-than-expected macroeconomic data helped maintain positive sentiments across domestic equities.” 

“Notably, the healthy CPI (consumer price index), WPI  (wholesale price index), and IIP (Index of Industrial Production) data contributed to investor optimism. The domestic CPI data moderated, moving closer to the target set by the RBI, primarily due to a tone-down in food inflation and a favourable base, which increased the likelihood of a rate cut before the year ends,” he added.

As per data released by the Indian government, the country’s WPI inflation rate fell to an over seven year low of 3.48% in May while retail inflation eased to a more than two-year low of 4.25%.

Meanwhile, Siddhartha Khemka, head of retail research at Motilal Oswal, said that the market will closely watch Prime Minister Narendra Modi’s visit to the US next week. A number of agreements are likely to be signed during the PM’s state visit, with defence expected to be the main area of focus. 

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

The 14 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $32.44 Bn as against $31 Bn last week and $28.96 Bn the week before that.

Zomato Ends The Week In Red

Shares of Zomato, which have been rallying since the end of last month, ended the winning streak this week by falling about 4.2% to INR 74.34 on the BSE.

Improved investor sentiment due to the foodtech major reporting adjusted EBITDA profitability, ex-Blinkit business, led to the recent rally in the stock.

This week, Zomato also announced the deregistration of its step-down subsidiary Zomato Australia Pty Limited, located in Australia.

However, analysts remain bullish on Zomato despite the fall this week.

The selling was inevitable after this sharp rally, said Rupak De, senior technical analyst at LKP Securities. He cited profit booking by investors who bought the shares at INR 50-INR 55 levels as the reason behind the fall this week.

“Zomato’s support is at INR 72, if that is broken, a further correction towards INR 65 is possible. On the higher side, the stock has its resistance at INR 76, which, if broken, Zomato will resume its uptrend once again,” said De.

Meanwhile, Zomato could face selling pressure in the short term if reports suggesting SoftBank’s probable stake sale in the company turn out to be true. 

Santosh Meena, head of research at Swastika Investmart, said that on the upside, Zomato may test the level of INR 88, indicating further potential gains for the stock.

SoftBank To Further Offload Stake In Paytm?

As per the report that emerged this week, besides Zomato, SoftBank is also likely to sell its stake in Paytm. While SoftBank has sold its stake in the fintech company earlier as well, this would be the first time that the Japanese VC major would book profits.

SoftBank would reportedly sell its stakes in small tranches and not via block deals.

SoftBank had paid around INR 830-INR 840 per share for Paytm and now its shares are trading at INR 895.5 on the BSE.

Like Zomato, shares of Paytm have also risen sharply over the last few weeks. Since the beginning of this month, Paytm has gained over 27%. This week also Paytm gained almost 10% on the BSE.

“Looking at Paytm’s current trajectory, it appears that the immediate target for its shares is around INR 990. However, at this level, we may expect some profit booking as investors take the opportunity to realise their gains,” said Swastika Investmart’s Meena.

On the downside, he sees a strong demand for Paytm between INR 840 and INR 820, which may act as a support for the stock.

On the other hand, LKP Securities’ De believes that INR 900 is the resistance for Paytm. Once the stock clears this level, it can move up towards INR 1,100 in the short- to medium-term, he said.

Paytm listed on the BSE at INR 1,955 a piece and is currently trading 54% lower than the listing price.

Delhivery Closes At A 7-Month High 

Despite the improvement in the overall sentiment for the new-age tech stocks, logistics unicorn Delhivery was witnessing a downtrend since the beginning of the month. The fall was also sectoral as its logistics peers were also facing selling pressure.

However, Delhivery reversed this declining trend and emerged as the biggest winner this week, gaining over 10% to close the week at INR 385.4 on the BSE. The shares had closed at such a level at the beginning of November last year.

It must be noted that Delhivery held an investors’ conference this week. Besides, the startup also informed its stakeholders last Friday about allotting 19.41 Lakh equity shares to its employees as part of its ESOP policies.

Following the new allotments, the paid-up share capital of Delhivery increased to INR 73.12 Cr from INR 72.92 Cr.

Delhivery has a crucial resistance at INR 400. The stock looks positive but it needs to clear the resistance level to rally towards INR 550-INR 600 in the short-term, said LKP Securities’ De.

The support for the stock is at INR 380, he said.

In line with the rising trend of most new-age tech stocks this year, Delhivery shares are also trading 16.24% higher year to date. However, the stock is still trading about 22% lower from its listing price of INR 493 on the BSE.

The post New-Age Tech Stocks Continue To Rally; Delhivery, Paytm Surge 10% This Week But Zomato Slips appeared first on Inc42 Media.

New-age tech stocks saw a sharp rally this week on the back of improved investor sentiment on them and the rise in the broader equity market.

CarTrade Technologies emerged as the biggest gainer this week, with its shares jumping a whopping 25% on the BSE. Ten other new-age tech stocks under Inc42’s coverage, including Paytm, Zomato, Pb Fintech, RateGain, and Tracxn, also gained in a range of 0.04% to over 13% this week.

Shares of Paytm and Zomato surged this week to cross important milestones. While Zomato crossed its IPO issue price level of INR 76 for the first time after a year of struggle, Paytm shares crossed the INR 800 mark for the first time since August last year.

The rise in Paytm’s share prices came on the back of BofA Securities upgrading it to ‘buy’ from ‘neutral’ rating this week with bullish commentary on the fintech major’s business fundamentals. The brokerage also raised Paytm’s price target (PT) to INR 885 from INR 780. 

Some analysts expect the stock to further move upward to INR 900 level in the next few weeks.

While the sharp rally in new-age tech stocks this week may cap the rise in their share prices for a few sessions, they look bullish overall, as per analysts.

Meanwhile, EaseMyTrip bucked the trend to continue its falling streak this week. It emerged as the biggest loser this week with a decline of 5.5%.

IndiaMart InterMESH and Delhivery were the two other new-age tech stocks that ended the week in the red, falling 1.9% and 0.5%, respectively, on the BSE.

 In the broader market, benchmark indices Sensex and Nifty50 rose in the first three sessions of the week but failed to sustain the momentum and fell in the last two sessions. Overall, Sensex and Nifty50 rose 0.13% to 62,625.63 and 0.2% to 18,563.4, respectively, this week.

Commenting on this, Siddhartha Khemka, head of retail research at Motilal Oswal, said that Indian equities are witnessing profit booking at higher levels. However, he said that the overall structure remains positive, with the Nifty gradually moving towards its previous lifetime high. 

Meanwhile, Amol Athawale, deputy vice president of technical research at Kotak Securities, said, “Local shares had run up sharply in the run up to the RBI’s monetary policy, and with the outcome coming on expected lines, investors continued with their profit-booking spree.”

Earlier this week, the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5% amid a decline in retail inflation in the country. 

Most analysts expect the market to remain volatile in the near-term. Investors will keep an eye on the US Fed meeting next week amid concerns that it will continue its hawkish stance, they said.

Now, let’s take a deeper look at the performance of some of the new-age tech stocks this week.

The 14 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $31 Bn versus $28.96 Bn last week.

Zomato’s Bull Run Continues

Shares of foodtech major Zomato gained in all five sessions this week and crossed its IPO price band of INR 72-INR 76 after over a year.

On Friday alone, shares of Zomato rose 2.3% to INR 77.57 on the BSE. The stock closed at this level for the first time in over 13 months.

Analysts are of the opinion that the startup reporting adjusted EBITDA profitability, ex-Blinkit business, ahead of the estimates is benefitting the stock. 

Besides, the aggressive march of other loss-making new-age listed companies towards profitability has also made the overall sentiment on these stocks positive. After all, fintech major Paytm achieved its adjusted EBITDA profitability ahead of expectations in Q3 FY23. PB Fintech also achieved break even on a consolidated basis in Q4 FY23.

Commenting on Zomato, Kotak Securities’ Athawale said that while the stock looks bullish on the technical charts, it is slightly in the overbought zone due to the recent rally. 

“There is a possibility of non-directional activity or a sideways movement in the next few sessions. INR 70-INR 72 is a crucial support for Zomato while INR 80-INR 83 is the immediate resistance zone,” he said.

“Buy on dips and sell on rallies could be the ideal strategy for the traders,” Athawale added.

Meanwhile, talking to Inc42 this week, a few analysts said that Zomato could touch INR 90-INR 100 level in the next few weeks.

Zomato shares are currently trading higher by almost 31% year to date (YTD). However, the stock is still trading over 48% below its listing price of INR 115 on the BSE.

CarTrade The Biggest Winner

Shares of CarTarde Technologies saw a significant surge in the market this week, which was also accompanied by high trading volumes. Its trading volume of 1.7 Lakh on Monday (June 5) was the highest since September 20, 2021, on the BSE.

CarTrade jumped almost 25.2% this week, ending Friday’s session at INR 526.85. 

It must be noted that the auto marketplace reported a consolidated net profit of INR 40.43 Cr in FY23 as against a net loss of INR 121.35 Cr in the prior fiscal. While announcing its financial results, the startup also said that it was a debt-free profitable company with surplus liquidity of over INR 1,110 Cr.

The jump in its volume this week also resulted in the BSE seeking clarification from the company. “…please be informed that there is no information/announcement to be made by the company which, in our opinion, may have a bearing on the volume behavior in scrip of the company and which is required to be disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” CarTrade said in its reply.

Meanwhile, the stock crossed its 200-day simple moving average of INR 500 for the first time since the end of February this year.

“While the structure is bullish, there is a possibility of a minor correction in the next few sessions. INR 480-INR 490 would be the immediate support zone for the stock,” said Athawale. 

Meanwhile, Kunal Shah, senior technical and derivative analyst at LKP Securities, expects a slight correction in the stock and believes it’s a good time to exit.

EaseMyTrip The Biggest Loser

Shares of EaseMyTrip, which have been under pressure since the traveltech startup announced its financial results for Q4 and FY23, continued their downward trajectory this week as well and emerged as the biggest loser.

Its shares have fallen over 8% in the two weeks after it reported a 25.4% decline in net profit to INR 31.1 Cr in Q4 FY23 from Q3 FY23. However, net profit rose 33.1% on a year-on-year basis. 

The startup’s shares fell in four consecutive sessions this week to end 5.5% lower. It ended Friday’s session at INR 43.08, down 3.5% compared to Thursday’s close.

It is pertinent to note that the fall in the shares is sectoral. Most of the listed travel services companies, including Thomas Cook and BLS International Services, are also seeing selling pressure.

LKP Securities’ Shah said that the support for EaseMyTrip stock is currently at INR 41. 

On the other hand, Kotak’s Athawale said that it’s difficult to predict EaseMyTrip’s movement currently. “I am not expecting any break movement right now. On the downside, the immediate support would be INR 42 and on the upper side, the immediate resistance is INR 47,” Athawale said.

The post New-Age Tech Stocks Soar: Zomato Crosses IPO Price Band, CarTrade Biggest Gainer This Week appeared first on Inc42 Media.

New-age tech stocks continued to exhibit strength for the second consecutive week even as the broader Indian equity market witnessed volatility this week.

Eight out of the 14 new-age tech stocks under Inc42’s coverage gained this week, with Nykaa emerging as the biggest winner with a 7% rise.

Zomato, Paytm, IndiaMart InterMESH, MapmyIndia, Fino Payments Bank, Paytm, and RateGain also rose in the range of 0.4% to 6% on the BSE.

However, CarTrade Technologies, PB Fintech, Tracxn Technologies, EasyMyTrip,  DroneAcharya, and Delhivery witnessed a decline, falling between 1% to over 5% on the stock exchange.

With the Q4 and FY23 earnings season coming to an end, the domestic market is reacting to global cues and other macroeconomic factors, which resulted in large volatility in the market this week.

Despite falling in two straight sessions mid-week, benchmark indices Sensex and Nifty50 managed to end the week in green. While Sensex rose 0.1% to 62,547.11, Nifty50 ended 0.2% higher at 18,534.10.

“Nifty closed higher, driven by positive factors such as the US debt ceiling resolution which boosted investor confidence. Besides, senior Fed officials also hinted at no interest rate hike in June, while 12% year-on-year growth in GST collections in May indicated strong economic growth in India,” said Prashanth Tapse, senior VP (research) at Mehta Equities.

Analysts are of the opinion that the overall sentiment in the domestic equity market remains bullish and all eyes are now on the upcoming policy meeting of the Reserve Bank of India (RBI).

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

The 14 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $28.96 Bn versus $29.1 Bn last week.

Nykaa Emerges As The Biggest Winner

Shares of Nykaa reversed the downward trend seen since April by gaining momentum by the end of the week to emerge as the biggest winter among its peers.

Shares of Nykaa jumped 7.5% on the BSE on Friday, ending the week at INR 135.6. Overall, the stock gained 7.4% this week.

Despite Nykaa’s Q4 FY23 earnings indicating signs of slowdown in business, its shares have gained 8% since the announcement of its results.

Commenting on the stock, Ganesh Dongre, senior manager, technical research at Anand Rathi, said Nykaa has a long growth trajectory from here on. 

Currently, the stop loss for the stock is around INR 115-INR 118 level, said Dongre, who has a target of over INR 150 for Nykaa. While there could be a slight dip in the coming week, the trend is upward and the best call on the stock would be to buy on dips, he added.

Delhivery The Biggest Loser

Despite the overall bullish sentiment for new-age tech stocks, shares of Delhivery slipped 5.3% to INR 350.70 on the BSE this week.

However, this weak performance was in line with the decline seen by other Indian logistics players like Allcargo, Aegis Logistics, and VRL Logistics. 

Shares of Delhivery have fallen almost 3% on the BSE in the last two weeks since the logistics unicorn reported a 32% widened net loss of INR 158.6 Cr in Q4 FY23.

Recently, the company also announced a strategic investment Vinculum, which is expected to enable omnichannel retailing for D2C enterprises and quick commerce companies. 

“The stock will see a reversal from INR 320-INR 350 zone and try to reach INR 380 in the next one to two weeks. Once it closes above that level, then we will see a sharp bounce, which can go beyond INR 400,” Dongre said about Delhivery.

EaseMyTrip’s Q4 Results Fail To Cheer Investors 

Shares of EaseMyTrip have remained range bound since the end of March this year. Its Q4 FY23 results published last Friday also failed to add any momentum to the stock.

Shares of the traveltech startup fell almost 3% this week, ending the last session at INR 45.59 on the BSE.

While EaseMyTrip reported a 33.1% YoY increase in net profit to INR 31.1 Cr, on a sequential basis, its profit fell 25.4% in the March quarter. Operating revenue also saw a 14% decline sequentially to INR 116.6 Cr, while it rose 91.5% YoY.

However, the company remains bullish about its performance and said it hopes to continue to grow the business profitably.

Anand Rathi’s Dongre said that the stop loss for the stock is INR 40 while the target is INR 50. In the coming week, EaseMyTrip stocks will try to rally to INR 48-INR 52 zone, he added.

The post New-Age Tech Stocks Stand Tall Amid Market Volatility, Nykaa Biggest Winner This Week appeared first on Inc42 Media.