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]