New-age tech stocks continued to struggle on the Indian bourses and witnessed a mixed week as the broader domestic market registered another week of losses. 

While some of these stocks saw a slight recovery this week, the total market cap of the 31 new-age tech stocks under Inc42’s coverage declined to $87.89 Bn from $88.38 Bn last week.

Of the 31 stocks, 16 fell this week in a range of 0.1% to a little over 14%. MobiKwik, which declined 8.4% last week, emerged as the biggest loser this week. 

The fintech major’s shares plunged almost 14.2% to INR 471.25 on the BSE. On Friday, the company said it has partnered Piramal Finance to offer personal loans of up to INR 2 Lakh to customers.

FirstCry was the second-biggest loser of the week, with its shares nosediving almost 10%. Shares of PB Fintech also fell 7%, followed by Fino Payments Bank’s 6.5% decline.

Among the other big losers were ixigo, Swiggy, CarTrade Technology, TBO Tek, and EaseMyTrip. 

Earlier this week, Swiggy said that it has received the corporate affairs ministry’s nod to incorporate a sports subsidiary, Swiggy Sports Pvt Ltd. 

Meanwhile, shares of TAC Infosec rallied 10.4% this week to emerge as the top gainer this week. Nazara Technologies was the second biggest gainer, with its shares rallying 6.8%. 

The gaming major’s board approved allotment of shares worth over INR 195 Cr this week via a preferential issue pertaining to its acquisition of a 47.7% stake in Moonshine Technology, the parent of Pokerbaazi. The company’s board is also scheduled to consider issuance of equity shares on a preferential basis on Monday (January 20).

Fintech major Paytm was the third-biggest gainer this week, with its shares jumping 6.2%. BlackBuck, Zomato, Go Digit, Mamaearth, Tracxn Technologies, Delhivery, and Ola Electric were among the other stocks which ended in the green this week.

Zomato was in the news for multiple reasons this week. It infused INR 500 Cr in its quick commerce arm Blinkit, and leased an over 2.5 Lakh square feet warehouse near Mumbai for its B2B supply chain arm Hyperpure. Brokerage JM Financial also reiterated its ‘buy’ rating on the foodtech major with a price target of INR 300.

Meanwhile, volatility continued in the broader market this week. Benchmark indices Nifty 50 fell 1% and Sensex declined 0.98%, ending Friday’s trading at 23,203.2 and 76,619.33, respectively. 

Commenting on the broader market trends, Vinod Nair, head of research at Geojit Financial Services, said that the domestic market ended on a weak note, with large cap IT and banking stocks seeing higher underperformance due to a cautious outlook on discretionary spending for the former and subdued deposit and credit growth and tighter liquidity conditions for the latter. 

“Rising uncertainty over potential economic policies from the new US administration impacted overall sentiments… the market is expected to remain cautious in the short term due to moderate Q3 expectations, while persistent FII outflows could add to higher volatility,” said Nair. 

With the Donald Trump administration taking over in the US next week, the forthcoming policies and comments will also be watched, given tariffs remain a major focus, as per market analysts.

Siddhartha Khemka, head of research, wealth management at Motilal Oswal, said that the domestic equities market is expected to remain volatile and stock-specific actions are expected with Q3 FY25 earnings in full swing. 

Two major new-age tech stocks, Zomato and Paytm, are scheduled to post their Q3 earnings next week.

The new-age tech stocks have lost more than $10 Bn in total market cap in January so far. 

Paytm Zooms On Potential Re-Entry In MSCI Index

Reversing its 14% decline last week, shares of Paytm gained 6.2% this week. The stock ended Friday’s trading at INR 899.65 on the BSE.

The stock started gaining momentum on Tuesday after brokerage JM Financial predicted in a research note that there is a high possibility of the inclusion of Paytm in the MSCI India Standard Index.

The brokerage said it foresees a capital inflow of $169 Mn for the Vijay Shekhar Sharma-led company.

Post that, shares of Paytm gained in all three next trading sessions this week. 

Meanwhile, Paytm’s current and former directors and officials settled a case with SEBI by paying a sum of INR 3.32 Cr. 

Paytm also expanded its ESOP pool this week by granting 2.03 Lakh stock options under its ESOP Plan 2019.

PB Fintech Takes A Hit

Shares of PB Fintech hit a two-month low this week amid concerns about its high valuation and a raid by GST officials on one of its subsidiaries.

The stock touched its all-time high, breaching the INR 2,000 level, in the first week of January. However, it has been on a downward trend since then. 

After falling more than 16% last week, PB Fintech’s shares slumped 7% this week. The stock ended Friday’s trading at INR 1,725.55 on the BSE.

It hit the INR 1,600 level earlier this week, the lowest since November 13 last year.

Recently, Morgan Stanley downgraded PB Fintech to an ‘underweight’ rating from ‘equal-weight’ earlier, citing lower-than-expected profit and high stock valuations. The brokerage also cut the price target to INR 1,400, which implies an almost 19% downside to the stock’s last close.

Meanwhile, PB Fintech said in an exchange filing this week that the GST department conducted a raid on one of its wholly-owned subsidiaries. Sources told Inc42 that the raid was in relation to PB Partners, the fintech major’s platform for insurance agents.

The company is being investigated for alleged tax evasion of about INR 80 Cr-INR 90 Cr, as per the sources.

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New-age tech stocks slumped and saw their cumulative market capitalisation decline by $10 Bn amid a correction in the broader Indian equities market this week.

Barring Menhood, IndiaMART, Nykaa, MapmyIndia and Yudiz, 26 of the 31 new-age tech stocks under Inc42’s coverage fell in a range of 0.83% to over 16% in the second week of January. 

Kids-focussed omnichannel retailer FirstCry was the biggest loser, with its shares falling  16.35% to close at INR 538.30 this week. 

On January 6, the company informed the exchanges that it has sought approval of its shareholders for “remuneration towards 51,80,000 Employee Stock Options” granted to its managing director and CEO Supam Maheshwari. 

On Friday, after market hours, the company said that the GST proceedings against it on the notices received from the Karnataka GST authorities for FY21 and FY22 have been concluded. The explanations and submissions provided by the company for the FY22 notice were accepted and found in order by the GST authorities. 

For FY21, it said, “… In response to excess ITC claims (3B vs 2A), the company has reversed IGST of INR 29.74 Lakh out of input credit ledger and paid IGST of INR 56,303 along with interest of INR 44,287 for short payment of reverse charge mechanism. Except for the above liability, other discrepancies with respect to short taxes paid and interest liability have been resolved and the proceeding initiated under section 73 of CGST/SGST Act 2017 has been dropped…”

PB Fintech was the second biggest loser this week, with its shares dropping 16.20% to INR 1,856.15. On January 2, the fintech company forayed into the healthcare segment by incorporating a new subsidiary PB Healthcare Services Private Limited. On the back of this development, the company’s shares touched a fresh all-time high of INR 2,254.95 on January 6 (Monday). 

SaaS company Unicommerce hit a new all-time low at INR 157 during the intraday trading on January 10. Its shares ended the week slightly 7.41% lower at INR 157.35. Tracxn and DroneAcharya also touched their all-time lows this week. Zaggle, CarTrade, Fino Payments, TAC Infosec, Go Digit, were among the other losers this week. 

Meanwhile, the broader Indian market plunged this week. While Sensex declined 2.33% to end the week at 77,378.91, Nifty 50 dipped 1.57% from last Friday to end at 23,440. Multiple factors contributed to this bearish sentiment, including the downward revision in Indian GDP growth estimates to 6.4% for FY25. According to Vinod Nair, head of research at Geojit Financial Services, this revision casts a shadow over the economy’s momentum. 

Besides, the week also saw some of the listed companies disclose their financial numbers for Q3 FY25, which according to experts were underwhelming. Adding to this was persistent selling by FIIs due to high valuations and global headwinds. 

“However, a glimmer of hope emerged as the initial set of results from the IT sector showed promise. Looking ahead, corporate earnings will be in the spotlight, with major companies, including IT giants, releasing their Q3 results. Macroeconomic data, such as India’s inflation rate and industrial production figures, will also play a crucial role in shaping market direction. On the global front, updates on the US economy, particularly labour market data and inflation trends, may impact FII flow,” Nair added. 

Now, let’s take a look at the performance of the 31 new-age tech stocks this week. 

The total market cap of the 31 new-age tech companies under Inc42’s coverage stood at $88.38 Bn at the end of the week as against $98.68 Bn at the end of the previous week.

Swiggy, Zomato Fall Amid Rising Competition

Shares of foodtech majors Swiggy and Zomato declined this week amid increasing competition and regulatory issues.

Shares of Zomato ended the week 10.89% lower at INR 243, wiping off about $3.5 Bn from its market cap.

On Friday, the company officially announced the launch of Blinkit’s 10-minute food delivery app Bistro. Earlier in the week, the foodtech major also launched a different 15-minute food delivery service in parts of Delhi NCR. 

Amid all these, Jefferies gave Zomato a ‘Hold’ rating this week along with a price target (PT) of INR 275.

Its rival Swiggy got an ‘Outperform’ rating from Bernstein and a PT of INR 635.  

Adding to its list of experiments, the company separated Swiggy Instamart to a standalone app, launched new app Pyng, and a 15-minute food delivery app SNACC. 

Besides quick commerce, Zomato and Swiggy are also competing in the quick food delivery space now. The likes of Zepto, Swish and Zing are also seeking a share of this pie. 

Meanwhile, the National Restaurant Association of India (NRAI) is firming up plans to approach the Competition Commission of India (CCI) for an intervention against the launch of 10-minute food delivery apps by Zomato and Swiggy.

Paytm, MobiKwik Also Take A Hit

Despite some positive developments, shares of both fintech companies declined this week. While Paytm fell 13.77% to end the week at INR 847.05, shares of MobiKwik fell 8.44% to INR 549.10. 

The companies were in the news for the following reasons this week:

• Paytm retained its third position in the UPI landscape in December 2024. 
• Bernstein gave Paytm an “Outperform” rating with a PT of INR 1,100, citing its ability to effectively monetise its core payments business.
• MobiKwik reported a net loss of INR 3.59 Cr in Q2 FY25. Sequentially, the company was able to trim its loss by about 45% from INR 6.62 Cr. Its EBITDA stood at INR 6.80 Cr in Q2 FY25, down 37% from INR 10.8 Cr in the year-ago quarter. 

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After going through a significant dip in recent times, the Indian public market carried the momentum of the last week of 2024 into the first week of 2025. In line with this, new-age tech companies largely witnessed a bullish sentiment. 

Twenty of the 31 new-age tech stocks under Inc42’s coverage gained in a range of 0.12% to over 10% this week. 

Just like the past few weeks, shares of NSE SME listed cybersecurity firm TAC Infosec ended the week at an all-time high of INR 1,410.55. This was a gain of 10.40% from the closing price of the shares on the previous Friday (December 27).

ideaForge emerged as the second biggest gainer this week, with its shares rising 9.86% to end Friday’s trade at INR 647.25. The stock is recovering steadily from the crash it witnessed after an underwhelming financial performance in the second quarter of FY25. After reporting a loss of INR 13.7 Cr in the quarter ending September 2024 in October, the company’s shares slipped to a 52-week low of INR 535.45 on October 29 

Other gainers this week included PB Fintech, Zaggle, Nykaa, FirstCry, Zomato, among others.

Meanwhile, 11 new-age tech stocks ended the week in the red. Shares of companies like IndiaMART, Swiggy, Delhivery, Yudiz, among others, fell in a range of 0.19% to a little over 15%. 

Logistics company BlackBuck saw the biggest decline this week, with its shares plummeting 15.02% to INR 453.35. The fall came after a grim projection by Morgan Stanley. The brokerage initiated its coverage on the stock with an ‘underperform’ tag, giving a target price (PT) of INR 450 per share on December 30. As a consequence, BlackBuck’s shares dipped as much as 5% to hit its lower price band of INR 506.85 on Monday. 

Another loser this week was online travel aggregator (OTA) EaseMyTrip, with its shares slipping 5.94% to end the week at INR 15.52. This was slightly above its 52-week low price of INR 14.23, which the shares touched in October. The reason behind the decline this week was stake sale by its cofounder and CEO Nishant Pitti, who offloaded 1.4% stake, or 5 Cr shares, for INR 78.3 Cr on Tuesday (December 31).

Following this, he also stepped down from the CEO position and his brother Rikant took charge on January 1. With the adverse market reaction to this move, Nishant addressed his departure on Friday through a post on social media platform X. The cofounder said that he won’t be selling any more stake in EaseMyTrip. 

Shares of Paytm tanked 3.15% to end the week at INR 982.30.

The bearish investor sentiment for Paytm stemmed primarily from the National Payments Corporation of India’s (NPCI) decision to extend the deadline for implementing a 30% cap on the market share of third-party app providers (TPAPs) by two more years. 

It is pertinent to mention that Paytm lost its market share in the UPI ecosystem in 2024. Its market share stood at 7.03% in 2024 as against 14.1% in the previous year. 

Shares of another fintech company MobiKwik also declined 4.59% this week to INR 599.70. The company is set to release its financials for Q2 FY25 next week on January 7. 

Meanwhile, the broader market rallied for the second straight week between December 30 to January 3. While Sensex gained 0.66% to end the week at 79,223.11, Nifty 50 gained 0.80% to end at 23,813.40. 

The primary reason behind this was the optimism around the upcoming earnings season. The rally was broad-based this week, with most sectoral indices posting gains.

Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Intermediates, said that a buy-on-dips strategy is recommended as long as Nifty remains above 23,900.

As per Vinod Nair, head of research at Geojit Financial Services, global developments, along with Q3 results, will drive the market performance in the coming weeks.

“… the investors are likely to align their portfolios based on pre-Budget expectations. The key data points such as the FOMC minutes, US non-farm payroll and unemployment rate will influence market sentiment,” he said.

Now, let’s take a look at the performance of 31 new-age tech stocks this week. 

The total market cap of the 31 new-age tech companies under Inc42’s coverage stood at $98.68 Bn at the end of the week as against $98.42 Bn at the end of the previous week.

Ola Electric Facing Intense Competition 

Shares of EV major Ola Electric fell 8.14% to end the week at INR 82.76. The company’s market cap also dipped to $4.25 Bn. However, it was still higher from its IPO valuation of $4 Bn. 

The decline came after the company informed the exchanges on Friday (December 27) last week, after market hours, that its chief marketing officer (CMO) Anshul Khandelwal and chief technology and product officer (CTPO) Suvonil Chatterjee tendered their resignation with immediate effect. 

While the stock slipped about 5% early in the week, it took further hits after the EV sales figures for December were out. In what was a slow month, legacy automotive players Bajaj Auto and TVS Motor leapfrogged Ola Electric in December in terms of electric two-wheeler (E2W) sales. As a result, Ola Electric’s market share tumbled to 19% in December from over 24% in November.

It is pertinent to mention that the Bhavish Aggarwal-led company retained its top position in the E2W EV market in 2024. Its total EV registrations surged 52% to about 4.1 Lakh units in 2024 from 2.7 Lakh units in the previous year. 

PB Fintech Touches Fresh Highs

Fintech major PB Fintech was on a bull run this week, with its shares gaining over 7.93% to end at INR 2214.85. The stock touched an all-time high of INR 2,246.95 on Friday, before losing some gains. 

The rally came after the company intimated the bourses on January 2 that it has set up a new wholly-owned subsidiary by the name PB Healthcare Services Private Limited. The move was greenlit by the insurance major’s board last month.

Meanwhile, the company also got a relief on the tax front. In an exchange filing on January 3, PB Fintech said it has received an order from the Assistant Registrar of the Income Tax Appellate Tribunal (ITAT) in New Delhi, upholding all grounds of appeal filed by the company against a prior decision made by the Commissioner of Income Tax-Appeal (CIT-A). The tax amount in question was INR 166.12 Cr. 

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After slipping nearly 5% last week, the Indian equities market saw a slight recovery in the final week of 2024. However, it was a mixed week for new-age tech stocks on the bourses.

Eighteen out of the 31 new-age tech stocks under Inc42’s coverage gained in a range of 0.06% to just a little under 19% this week.

Recently listed fintech major MobiKwik gained the most in its first full week of trade. Its shares ended the week over 18% higher at INR 628.55. The company’s shares receded after touching an all-time high of INR 698.30 on Thursday (December 26). 

Meanwhile, NSE SME-listed TAC Infosec and BlackBuck continued last week’s momentum. Shares of TAC Infosec ended the week at an all-time high of INR 1,277.65, an increase of 8.24% from the past week. 

Besides, BlackBuck touched an all-time high of INR 548 on Friday, before paring some of the gains to close the day at INR 533.50. The stock rose 5.94% from the previous week.

Travel tech company ixigo also touched an all-time high at INR 196.45 on Thursday. However, the stock gave up some of the gains to end the week at INR 177.85, up 7.59% from the last week.

Shares of CarTrade too touched a fresh all-time high at INR 1,718 on Thursday. However, it fell from there to close the week 3.17% lower from the previous week at INR 1,566.75.

Meanwhile, Unicommerce touched an all-time low this week. However, after touching a fresh low of INR 161, the stock gained to end Friday’s trading session 2.15% higher week-on-week at INR 168.95.

Other gainers of the week included Paytm, Zaggle, Awfis, Delhivery, among others. 

On the other hand, 13 new-age tech stocks fell in a range of 0.36% to a little under 9% this week. 

Foodtech major Swiggy was the biggest loser, with its shares ending 8.62% lower at INR 546. Its rival Zomato also saw a bearish investor sentiment in its first week at the Sensex. The stock ended the week at INR 271.15, down 3.80% from the past week. 

FirstCry, Ola Electric, MapmyIndia, PB Fintech, and DroneAcharya were among the other stocks which ended in the red. 

In the broader market, Sensex ended 0.8% higher at 78,699.07 and Nifty 50 closed the week with gains of 0.9% at 23,813.40. However, volatility persisted in the market this week as well and activity was muted.

Commenting on this, Vinod Nair, head of research at Geojit Financial Services, said, “Persistent concerns over FII outflows and the depreciating rupee, along with potential adverse tariffs and reduced expectations for rate cuts in 2025, contributed to the muted market trend. Uncertainty surrounding Donald Trump’s economic policies and high valuations may impact the stock market in the short term, particularly in emerging markets.” 

It is pertinent to mention that the stock exchanges were closed on Christmas on December 25.

From a technical standpoint, Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Intermediates, said that Nifty 50 has formed an inside bar candlestick pattern, indicating strong demand near the 23,500-23,540 zone. 

“The 200-DSMA (Days Simple Moving Average) is placed around 23,860, which will act as an immediate hurdle for Nifty. A sustainable move above this level could drive the index towards 24,000–24,100. On the downside, 23,500 remains a key support. In the immediate term, Nifty is expected to consolidate between 23,500 and 23,900, with a breakout on either side defining its next move,” he said. 

The Indian benchmark indices are all set to end 2024 with ninth consecutive year of gains, according to a report by Bajaj Broking. The indices have gained nearly 10% this year.

This bull run also paved the way for 13 new-age tech companies to go public this year. Over 20 such companies are expected to hit the bourses next year. 

Meanwhile, managed office space provider IndiQube became the latest new-age tech company to file its draft red herring prospectus (DRHP) this week. Its INR 850 Cr initial public offering (IPO) will comprise a fresh issue of shares worth up to INR 750 Cr and an offer for sale (OFS) of up to INR 100 Cr. 

Now, let’s take a look at how 31 new-age tech companies performed this week. 

The total market cap of the 31 new-age tech companies under Inc42’s coverage stood at $98.42 Bn at the end of the week as against $101.42 Bn at the end of the previous week. 

MobiKwik’s First Trading Week

In its first full week on the bourses, shares of MobiKwik zoomed 18.66% to end at INR 628.55. 

The company’s shares have gained 42.12% from their listing price of INR 442.25. Its market cap has also zoomed to $571.80 Mn from its IPO valuation of $250 Mn. 

While MobiKwik’s shareholders didn’t part ways with any of their stake in its IPO, Peak XV Partners sold 12.01 Lakh shares at INR 679.38 apiece in a block deal worth INR 81.63 Cr this week.

Ola Electric Slips

The Bhavish Aggarwal-led EV company launched 3,200 new stores on December 25, taking its total count to 4,000 stores in the country. Besides, Ola Electric also launched a limited edition electric scooter ‘Ola S1 Pro Sona’, which comes with 24-karat gold plated elements.

However, the stock saw bearish sentiment this week. Shares of Ola Electric dipped 3.92% to end at INR 90.09. Its market cap also fell to $4.65 Bn at the end of the week.

After market hours on Friday, the company announced the exits of two more top-level executives. Its chief marketing officer (CMO) Anshul Khandelwal and chief technology and product officer (CTPO) Suvonil Chatterjee tendered their resignation with immediate effect on December 27. 

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The sentiment in the global equities market was affected this week after the US Fed, while announcing a 25 basis points rate cut, hinted at a slower-than-expected pace of interest rate cuts in 2025. Indian markets, too, felt an impact of the bearish investor sentiment.

In line with the broader market, eighteen out of the 30 new-age tech stocks under Inc42’s coverage ended the week in the red. They fell in a range of 0.05% to over 10% from the past week. 

Logistics company Delhivery was the biggest loser of the week, with its shares falling 10.52% from previous week to end at INR 349.40. The dip came despite Delhivery receiving a positive rating from Equirus on Tuesday. The brokerage initiated coverage on Delhivery with a “long” recommendation and a price target of INR 459. 

Recently listed Unicommerce, which was among the losers this week, touched a new all-time low of INR 164.90 on Friday. The stock made a slight recovery from there but ended the week 7.68% lower at INR 165.40.

Other losers of the week included Paytm, Zomato, EaseMyTrip, Zaggle and MapmyIndia.

Meanwhile, 12 stocks ended the week with gains in a range 0.04% to just a bit under 19%. Logistics company BlackBuck emerged as the biggest gainer. Continuing its bull run from last week, shares of BlackBuck ended the week 18.96% higher from the past week at INR 503.60. The stock touched an all-time high of INR 517.05 during the intraday trading on Friday.

NSE SME-listed TAC Infosec shares closed at an all-time high of INR 1,180.40, up 11.20% from the past week. 

Shares of CarTrade also continued their rally, touching a fresh 52-week high of INR 1,647.65 on Friday. With this, the company’s share price crossed its IPO price of INR 1,600. Swiggy and Zaggle also touched an all-time high of INR 613.35 on Tuesday this week. 

Other gainers of the week included DroneAcharya, FirstCry, ixigo, Go Digit and PB Fintech. 

In the broader market, benchmark indices Sensex fell 4.98% to end the week at 78,041.59 and Nifty 50 slumped 4.76% to 23,587.50.

Following the US Fed’s hawkish commentary, foreign institutional investors became net sellers this week. They sold equity worth INR 15,828 Cr this week.

“FIIs will turn buyers when we have news of GDP growth and earnings growth rebound. Q3 data can be mildly positive. FII selling has depressed the prices of segments of largecaps like banking where the valuations are attractive now. Investors can utilise this market downturn to buy quality largecaps. Pharma, IT and digital platform companies are likely to buck the downtrend,” V K Vijayakumar, chief investment strategist at Geojit Financial Services, said. 

Despite the fall this week, the benchmark indices have gained about 10% in 2024 so far. Bajaj Broking expects the bull run to continue in the coming year. “All findings confirm that the bulls will dominate in CY25, with the Nifty expected to deliver a 19% return and reach a potential target of 28,700 over the next 12 months,” the brokerage said in its outlook report for 2025.

Amid the negative sentiment, fintech major MobiKwik made a stellar public market debut this week. Further adding to the list of new-age tech companies going for IPOs, non-banking finance company (NBFC) Aye Finance filed its DRHP for INR 1,450 Cr IPO this week. Its public offer will comprise a fresh issue of equity shares worth INR 885 Cr and an offer for sale (OFS) of up to INR 565 Cr.

Meanwhile, edtech unicorn PhysicsWallah set the ball rolling for its much anticipated IPO by turning into a public company this week. 

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

The total market cap of the 31 new-age tech companies under Inc42’s coverage stood at $101.42 Bn at the end of the week as against $100.25 Bn at the end of the previous week. MobiKwik became the latest addition to the list this week.

Stellar Listing For MobiKwik

MobiKwik saw a bumper listing on Wednesday, with its shares making their debut at a 58.5% premium to the issue price at 442.25 on the BSE. On the NSE, the stock was listed at INR 440 apiece.

Eventually, MobiKwik closed its first trading session at INR 530.30, up 90.07% from the IPO price. The next day, shares of MobiKwik touched a high of INR 605 during the intraday trading. 

However, the stock saw profit booking on Friday and ended its first week on the bourses at INR 488.40, up 10.43% from the listing price. MobiKwik’s market cap also zoomed to $446.63 Mn as against its IPO valuation of $255 Mn. 

Dolat Capital became the first brokerage to initiate coverage on MobiKwik, giving a ‘BUY’ rating and a price target (PT) of INR 500.

“Given favourable trends in India’s digital payments and financial services coupled with consistently improving operating performance, we expect Mobikwik to continue delivering robust Revenue/EBITDA/PAT CAGR of 45%/61%/64% over FY24-FY27E,” Dolat Capital said.

Swiggy Gains On Positive View Of Brokerages 

Shares of recently listed foodtech major Swiggy gained 12.21% this week and ended at INR 597.50. The company’s shares have surged 45.02% from its listing price of INR 412. Meanwhile, its market cap has also increased to $15.74 Bn, up about 40% from its IPO valuation of $11.30 Bn. 

Two brokerages initiated their coverage on Swiggy this week.

On Monday, Axis Capital gave Swiggy a ‘Buy’ rating and a target price of INR 640 per share. 

Later in the week, JP Morgan initiated its coverage on the foodtech major with an “overweight” rating, calling it the “dark horse of India local services.” It has a price target of INR 730 for Swiggy. 

Zaggle Shares Dip After Initiation Of QIP

On an extended bull run, fintech SaaS company Zaggle decided to undertake its first fundraise as a listed company this week. The company opened its qualified institutional placement (QIP) offer on Wednesday via which it is looking to raise INR 950 Cr.

Zaggle decided on a floor price of INR 550.73 per equity share for its QIP, marking a 1.9% discount from the stock’s last closing price on Wednesday.

It is pertinent to mention that Zaggle touched a fresh all time high of INR 597 a day prior on December 17.

However, investors turned bearish on Zaggle after the opening of the QIP. The company’s shares ended the week at INR 530.15, down 5.47% from the past week. Despite the downward movement last week, Zaggle’s shares are currently trading 227.25% higher than its listing price of INR 164.

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It was a mixed week for new-age tech stocks despite a rally in the broader market. Fourteen out of the 30 new-age tech stocks under Inc42’s coverage gained in a range 0.86% to just under 28% between December 9 and 13. 

Continuing its bull run since listing on NSE Emerge, cybersecurity company TAC Infosec emerged as the biggest gainer this week. Its shares gained 27.61% to close at an all-time high of INR 1,009.05. 

Ahead of its second quarter financial results disclosure on Friday (December 13), shares of recently listed BlackBuck zoomed 24.37% to end the week at INR 423.35. The logistics company’s shares rallied to an all-time high of INR 460.70 during the intraday trade on Friday. 

Fintech SaaS company Zaggle continued its upward movement and its shares touched an all-time high of INR 593.95 on Wednesday (December 11). The stock gained 6.85% this week to close at INR 560.85. 

Paytm and CarTrade also touched fresh 52-week highs at INR 1,007 and INR 1,580, respectively, this week. While CarTrade ended the week 3.75% higher, Paytm ended the week up 0.86% at INR 984.20 

Other gainers this week included Delhivery, ixigo, MapmyIndia, Nykaa and Awfis.

Meanwhile, shares of 15 new-age tech companies ended in the red, falling in a range of 1.07% to a little under 9%. Fino Payments Banks was the biggest loser this week, with its shares ending 8.61% lower. 

Other losers this week included Zomato, Swiggy, Ola Electric, Menhood, Nazara Technologies, among others. 

Shares of FirstCry ended the week without any change from the last week.

In the broader market, benchmark index Sensex rose 0.76%  to end at 82,133.12 and Nifty 50 jumped 0.36% to 24,768.30 at the end of the week. 

Vinod Nair, head of research at Geojit Financial Services, said that the rebound in the market suggests that buy-on-dips strategy is working well. He said investors are bullish on expectations of a better H2 FY25 performance compared with subdued H1 FY25.

“For the week ahead, we expect bottom fishing strategy to continue. Investors will also keep an eye on the US Fed, Bank of England and Bank of Japan monetary policy and US GDP data for further direction,” he added.

Foreign institutional investors (FIIs) continued their buying streak this week. week. FIIs invested INR 14,435 Cr in the Indian equities market till the end of this week. On the contrary, they sold securities worth INR 1,13,858 Cr in October and INR 39,315 Cr in November.

“The recent rally in the Indian market has been driven by positive political developments, a recovery in corporate stocks, increased foreign investments – both in primary and secondary markets and broad sector participation,” Vipul Bhowar, senior director of listed investments at Waterfield Advisors, said. 

Amid all these, the initial public offering (IPO) of fintech major MobiKwik closed this week with robust investor interest. The public issue received bids for 141.72 Cr shares as against 1.18 Cr shares on offer, resulting in an oversubscription of 119.38X. The company is expected to debut on the bourses on December 18. 

Adding on to the list of new-age companies going for IPOs, jewellery brand BlueStone filed its IPO papers this week. Its proposed public issue will comprise a fresh issue of shares worth INR 1,000 Cr and an offer-for-sale component of up to 2.40 Cr equity shares.

BlueStone adds to other startups like coworking space provider DevX that have filed their DRHPs with the market regulator SEBI. Other new-age tech companies like ArisInfra, Ecom Express and Smartworks have received the regulator’s go-ahead for their respective IPOs. 

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

The total market cap of the 30 new-age tech companies under Inc42’s coverage stood at $100.25 Bn at the end of the week as against $102.11 Bn at the end of the previous week.

TAC Infosec Soars To New Highs

Shares of cybersecurity company TAC Infosec closed at an all-time high of INR 1,009.05 on Friday. With the rally, the stock has zoomed 247.95% from its listing price of INR 290. The company’s market cap stood at $124.68 Mn (INR 1,057.44 Cr) at the end of the week.

The company said this week that it has become an ioXt Authorized Lab, joining an “exclusive league of only eight companies worldwide”.

ioXt claims to be a global alliance which sets the standard for IoT Security.

“IoT devices are a cornerstone of our digital future, yet they remain highly vulnerable to cyber threats. Being approved as an ioXt Authorized Lab empowers us to ensure manufacturers and enterprises meet global security benchmarks. This milestone is a significant leap in our mission to become the world’s largest vulnerability management company,” TAC Infosec’s CTO Saransh Rawat said. 

Fino Payments Bank Slumps

Shares of Fino ended the week over 8% lower at INR 327.45. With the decline, Fino is now down over 40% from its listing price of INR 544.35. The company’s market cap stood at $321.29 Mn (INR 2,724.85 Cr) at the end of the week. 

On Monday (December 9), Fino informed the exchanges that it has been slapped a penalty of INR 24.5 Lakh by tax authorities for alleged wrong claim of input tax credit in FY19.

“The bank is evaluating appropriate legal remedy, including appeal, as per law. Based on the bank’s assessment and prevailing law, the bank reasonably expects a favourable outcome at the Appellate level,” it said. 

BlackBuck Surges Ahead Of Q2 Results

Shares of BlackBuck parent Zinka Logistics zoomed to an all-time high of INR 460.70, hours before it was scheduled to disclose its financial performance for the second quarter of FY25. On a week-on-week basis, the stock zoomed over 24% to end at INR 423.35. Its market cap stood at $880.94 Mn (INR 7,471.23 Cr) at the end of the week.

The stock has gained 51.71% from its listing price of INR 279.05.

The company released its Q2 numbers after market hours on Friday. In its first financial disclosure post listing, the Flipkart-backed company reported a net loss of INR 308.38 Cr from continuing operations, about 7.8X from INR 39.67 Cr loss it registered in the year-ago quarter. 

The company incurred a share based payment expense of INR 320.74 Cr during the quarter under review. Without this exceptional item, it would have posted a profit of over INR 12 Cr from its continuing operations. Revenue from operations rose 56% year-on-year to INR 98.77 Cr in Q2 FY25. 

The post New-Age Tech Stocks See A Mixed Week, TAC Infosec Touches All-Time High appeared first on Inc42 Media.

It was a positive week for the Indian equities market, as it continued its upward momentum for the third straight week after the turbulence due to poor Q2 show by companies.

In line with this, new-age tech stocks also jumped this week. Twenty three out of the 30 new-age tech stocks under Inc42’s coverage rose in a range of 0.46% to a little under 28% this week. 

With this, multiple new-age tech stocks touched 52-week/ all-time highs this week. The biggest gainer this week was recently listed logistics company BlackBuck (Zinka Logistics Ltd), with its shares surging 27.97% to end the week at INR 340.40. The stock surged to an all-time high of INR 381.85 during the intraday trading on December 4.

The stock has gained 21.99% from its listing price of INR 279.05. The company’s market capitalisation stood at $709.47 Mn at the end of trading session on Friday (December 6) as against its IPO valuation of $570 Mn.

Shares of foodtech major Swiggy also zoomed to an all-time high of INR 576.95 on December 5, after it narrowed its Q2 loss. The stock ended the week at INR 544.65, up 15.56% from previous week. 

Swiggy’s archrival Zomato also saw its shares zoom to an all-time high of INR 304.50 on December 5. However, it ended the week slightly lower at INR 303. The shares rallied 8.41% from the previous week, during which it raised $1.3 Bn via qualified institutional placement (QIP).

Another gainer of the week was fintech SaaS player Zaggle, which ended the week at an all-time high of INR 524.90. Its shares ended the week 4.01% higher. The stock is now up 224% from its listing price of INR 164 in September last year. The company won four new contracts in the past week. Its founder and executive chairman Raj Narayanam told Financial Express that Zaggle is looking to double its revenue by FY26. 

CarTrade, Paytm, and TAC Infosec also touched fresh 52-week highs during the intraday trading this week. Other gainers this week included Yudiz, Ola Electric, Unicommerce, Nazara Technologies, PB Fintech and Awfis.

Meanwhile, seven startups ended the week in the red, falling in a range of 1.33% to slightly under 7%. The week’s biggest loser was online travel aggregator EaseMyTrip, ending the week 6.89% lower at INR 16.76. The company’s shares started trading ex-bonus on November 29. 

Other losers this week were MapmyIndia, TBO Tek, Fino Payments Bank, Nykaa, FirstCry and ixigo. 

In the broader market, Sensex ended the week 2.39% higher at 81,709.12 and Nifty 50 surged 2.26% to close at 24,131.10. 

One of the major reasons that drove the resurgence in the broader market was the return of foreign institutional investors (FIIs). After turning net sellers over the past couple of months, FIIs bought shares worth INR 24,453 Cr in the first week of December. On the contrary, they sold securities worth INR 1,13,858 Cr in October and INR 39,315 Cr in November.

V K Vijayakumar, chief investment strategist at Geojit Financial Services, believes that the relentless FII selling in the Indian market is over. “FIIs turning buyers in early December, in total reversal of their sustained selling strategy during the last two months, has altered the market sentiments. There is a clear change in their strategy in India,” he said. 

Meanwhile, the Reserve Bank of India (RBI) kept the repo rate unchanged this week but cut the cash reserve ratio (CRR) by 50 basis points to 4%. The central bank also cut the GDP growth projection for FY25 to 6.6% from 7.2% earlier.

It is pertinent to mention that India’s GDP growth fell to a seven quarter low of 5.4% in the second quarter of FY25. 

Amid all these, the IPO boom in the new-age tech companies continued. Fintech major MobiKwik filed its red herring prospectus (RHP) on Friday (December 6) for its IPO. It has reduced the size of the fresh issue by around 18% to INR 572 Cr from INR 700 Cr earlier. The company’s IPO will open on December 11 and close on December 13.

Earlier in the week, logistics major Ecom Express and coworking space provider Smartworks also received SEBI’s go-ahead for their proposed INR 2,600 Cr and INR 550 Cr IPOs, respectively. They join ArisInfra in the line of startups whose IPOs have been cleared by SEBI. 

“What was once the domain of institutional investors is now seeing a remarkable surge in retail participation. This shift is being fuelled by the allure of higher returns and the growing ease of access to financial markets, making it an exciting time for individual investors to dive in,” Pantomath Capital Advisors said on the IPO trends. 

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

The total market cap of the 30 new-age tech companies under Inc42’s coverage stood at $102.11 Bn at the end of the week as against $92.45 Bn at the end of the previous week.

Paytm Top-Ups Its Cash Reserves

Continuing its resurgence, fintech major Paytm’s shares touched a fresh 52-week high of INR 990.90 on Friday (December 6). The stock ended the week 8.30% higher at INR 975.80. The company’s market cap stood at $7.34 Bn at the end of the week. 

The rise in the share price on Friday came after it was reported that the company was looking to sell its stock acquisition rights (SARs) in Japanese payments firm PayPay. On Saturday, the Vijay Shekhar Sharma-led company said that its Singapore subsidiary will be selling the SARs to SoftBank for $279.19 Mn (about INR 2,364 Cr). The transaction, which is expected to close within this month, will value PayPay at $7.06 Bn.

This would be the second such stake sale by Paytm this year. Earlier, it sold its events and ticketing business to Zomato for INR 2,048 Cr. As a result, Paytm’s cash reserves at the end of the second quarter of FY25 stood at INR 9,999 crore, an increase of over 23% from INR 8,108 crore at the end of the previous June quarter.

While Paytm’s future plans remain to be seen, founder and CEO Sharma previously said that the company will be expanding its core consumer payments business. In October, Sharma stated that the company would focus on reinvesting in the consumer payments sector. 

Last month, Paytm launched new features, including UPI Lite Auto Top-Ups ,UPI International in select overseas markets, and UPI statement download option.

Tumultuous Week For MapmyIndia 

The listed geotech company saw extreme bearish sentiment at the start of the week, leading the stock to crash to a 52-week low of INR 1,514.70 on Wednesday (December 4). However, the share prices recovered slightly to end 5.89% lower on a week-on-week basis at INR 1,646.60. 

On November 29, MapmyIndia parent CE Info Systems announced that its CEO Rohan Verma will be departing from his active executive duties with effect from April 1, 2025 to focus on building a new B2C business as a separate entity. Despite remaining a non-executive director at MapmyIndia, Verma will hold a 90% stake in the new venture.

During an investor call held on December 3, the company clarified that it would hive off its B2C business, which includes its consumer facing map product Mappls. The new venture will own Mappls. MapmyIndia will retain access to Mappls for its core B2B and B2B2C operations, while the new entity will bear its own expenses and operate independently.

MapmyIndia has invested INR 10 Lakh for a 10% stake in the new entity and said it plans to subscribe to INR 35 Cr worth of compulsorily convertible debentures (CCDs) moving forward. 

However, investors and analysts expressed dissatisfaction with the separation during the investor call, citing concerns about diversion of capital and potential impact on operational efficiency.

Critics, including proxy advisory firm InGovern, questioned the fairness of the deal’s terms and the potential conflict of interest arising from Verma’s continued role on both boards. Primarily, the spin-off of Mappls and its long-term impact on MapmyIndia’s financial health were the key concerns for the investors.

Following this, the outgoing CEO said that he would fund the new venture himself and would not take the INR 35 Cr investment via CCDs. However, MapmyIndia hasn’t made any disclosure on the bourses about these plans since the call. 

Swiggy Jumps As Co Sets Profitability Target 

Recently listed Swiggy declared its financial results this week, trimming its consolidated net loss by 4.78% to INR 625.53 Cr in Q2 FY25 from INR 657 Cr in the year-ago quarter. Revenue from operations zoomed 30% to INR 3,601.45 Cr during the quarter under review from INR 2,763.33 Cr in the year-ago period. 

With the positive financial statement, shares of Swiggy zoomed 15.56% to end the week at INR 544.65. 

The foodtech major said it aims to achieve adjusted EBITDA profitability on a consolidated level in the third quarter of the financial year 2025-26 (FY26).

In Q2, Swiggy’s bread-and-butter food delivery business raked in a profit of INR 121.93 Cr. While quick commerce arm Instamart incurred a loss of INR 317.25 Cr, the Out of Home Consumption vertical’s loss stood at INR 9.26 Cr in the quarter.

Swiggy expects Instamart to achieve contribution break-even by Q3 FY26 and adjusted EBITDA breakeven by Q2 FY27. It is also looking to expand its 10-minute deliveries service by doubling its dark store count by March 2025 from the 523 dark stores it operated in March 2024.

Despite the upbeat financials, brokerage HDFC Securities downgraded Swiggy to ‘reduce’ from ‘add’ but bumped up its target price to INR 470 per share from INR 430 apiece earlier. The brokerage said that while key performance indicators for Swiggy are improving in food delivery and quick commerce segments, it still lags behind Zomato.

The post New-Age Tech Stocks’ Market Cap Crosses $100 Bn; BlackBuck Top Gainer This Week appeared first on Inc42 Media.

Following the correction and the volatility in the broader market over the last month or so, the Indian equities market extended last week’s upward movement in the final week of November. In line with this, new-age tech stocks also gained.

Twenty four of the 30 new-age tech stocks under Inc42’s watch gained in a range of 0.12% to a little over 26% this week. 

Emerging from a phase of bearish investor sentiment, shares of electric two-wheeler manufacturer Ola Electric gained 26.44% to end the week at INR 87.42.

Last week’s biggest loser Honasa Consumer also ended the week with hefty gains. After plunging over 40% in the previous week, shares of Honasa ended this week 17.37% higher at INR 263.25. 

Further, Paytm, Zaggle, CarTrade, Swiggy and BlackBuck touched fresh 52-week highs during the week. RateGain, Nykaa, TAC Infosec, ideaForge, IndiaMART, among others, ended the week in the green. 

Swiggy’s rival Zomato closed its INR 8,500 Cr qualified institutional placement (QIP) issue this week, marking its first fundraise post listing. The company announced the allotment of 33.64 Cr equity shares on November 28. Amid this, its shares ended the week 5.81% higher at INR 279.50. Its market capitalisation also zoomed to $29.20 Bn from $27.64 Bn at the end of last week. 

On the other hand, shares of five new-age tech stocks ended in the red this week, falling in a range of 0.32% to a little under 6%. NSE Emerge-listed Yudiz was the biggest loser, with its shares falling 5.66% to close the week at INR 72.75.

Online travel aggregator (OTA) Yatra touched a fresh 52-week low of INR 102.40 during the week. The stock ended the week 1.52% lower at INR 103.75. Other losers of the week were Delhivery, Menhood and DroneAcharya. 

It is also pertinent to mention that EaseMyTrip’s shares started trading ex-bonus this week. 

Meanwhile, benchmark index Sensex gained 0.86% to end the week at 79,802.79. Nifty50 rose 0.9% to 24,131.10 this week.

Commenting on the broader market trends, Vinod Nair, head of research at Geojit Financial Services, observed that the gain in the indices came on the back of expectations of stability in government spending in H2 FY25 and MSCI rebalancing.

“We expect the prospects of H2 earnings to remain positive due to a good monsoon and festival and marriage season, which could ease the impact of earnings downgrades that happened in Q2. Though the consensus shows status quo, the probability of a rate cut in February is high due to the subdued growth in Q2,” he said.

As per the data released on Friday (November 29), India’s GDP growth slowed down to 5.4% in the second quarter of FY25.

In the short term, Nair believes that economic indicators like service and manufacturing PMI data, auto sales, and US job data will influence investors’ attention and shape the market momentum.

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

The total market cap of the 30 new-age tech stocks under Inc42’s coverage stood at $92.45 Bn at the end of the week as against $86.47 Bn at the end of the previous week.

Ola Electric Surges On The Back Of New Launches

Amid rising after-sales service complaints, shares of Ola Electric plunged to an all time low of INR 66.60 earlier in the month.

However, things took a turn for the better in the final week of November. Shares of Ola Electric gained 26.44% to end the week at INR 87.42. With this, its market cap also jumped back to $4.54 Bn at the end of the week. 

The upward spike came after it launched the Gig and S1 Z range of scooters, focussed on the gig economy and price-conscious consumers, on November 26. Ola Gig, Ola Gig+, Ola S1 Z, and Ola S1 Z+ were launched at introductory prices of INR 39,999, INR 49,999, INR 59,999 and INR 64,999, respectively. 

Besides, the company also launched a portable battery pack, named Ola PowerPod. The battery pack, which is set for roll out in April 2025, will  enable power backup and home solar energy storage.

“At INR 9,999 Ola PowerPod makes EVs more flexible and adaptable across urban and rural India!” Ola Electric CEO and founder Bhavish Aggarwal said in a social media post. 

During the week, brokerage firm Citi Bank also initiated its coverage on the company with a ‘Buy’ call and a price target (PT) of INR 90. 

The brokerage firm highlighted Ola Electric’s leadership position as the largest E2W player in India, as well as its broad product portfolio, strong focus on R&D, significant vertical integration and large-scale production capabilities. 

Citi acknowledged the recent negative service perceptions but said it expects these concerns to ease over the medium term as Ola Electric’s supply chain improves to match volume growth. 

Swiggy Soars On The Back Of Brokerage Optimism

Shares of recently listed Swiggy touched an all-time high of INR 516.95 on Thursday. It lost some of the gains to end the week at INR 471.30, up 13.23% from last week. The company’s market cap stood at $12.47 Bn at the end of the week. 

During the week, brokerage UBS initiated coverage on Swiggy with a ‘Buy’ rating and a 12-month price target of INR 515.

Reasoning its take, the brokerage expressed confidence in Swiggy’s ability to capitalise on the rapid growth of food delivery and quick commerce markets in the country. It said that there is a significant potential for further growth in these markets. 

Prior to this, JM Financial initiated its coverage on Swiggy with a ‘Buy’ rating and a price target of INR 470. However, Motilal Oswal gave Swiggy’s shares a ‘neutral’ rating with a PT of INR 475. 

It is imperative to mention that Swiggy will be disclosing its results for the second quarter of FY25 on December 3.

Honasa Regains Unicorn Status Within A Week

After witnessing a sharp decline of about 40% in the previous week, shares of Mamaearth parent Honasa ended the final week of November with gains. Its shares gained 17.37% to end at 263.25. With this, its market cap also surged back to $1.01 Bn.

It is pertinent to mention that the company’s shares hit an upper circuit of INR 251.55 on November 28. 

The rally came after a significant bearish sentiment that plagued the stock last week. The stock came under pressure after the beauty and personal care (BPC) major released its Q2 FY25 results after market hours on November 14. It slipped into the red with a consolidated net loss of INR 18.6 Cr as against a profit of INR 29.4 Cr in Q2 FY24. 

Revenue from operations also saw a decline of nearly 7% to INR 461.8 Cr from INR 496.1 Cr in the same quarter last year. The company attributed the decline to its ongoing transition from a super-stockist-led distribution model to a direct distributor model under “Project Neev”.

Following the release, the company’s shares plummeted by 20% in the first trading session of the week. Amid this, the All India Consumer Product Distributors Federation (AICPDF) accused Honasa of unethical stock dumping practices, alleging that distributors across the country are struggling with “unsold stocks nearing expiry”. 

The AICPDF also claimed that Honasa has unsettled credit notes totaling approximately INR 50 crore. Dhairyashil Patil, the national president of AICPDF, warned that the federation may consider a nationwide non-cooperation stance if these issues are not resolved. 

However, Honasa rubbished all the allegations. 

The post New-Age Tech Stocks Gain As Broader Market Rises, Ola Electric Top Gainer This Week appeared first on Inc42 Media.

The downward streak of the Indian equities market ended this week, with the benchmark indices ending in the green in a volatile week. However, investors largely remained bearish on new-age tech stocks this week.

Nineteen out of the 29 new-age tech stocks under Inc42’s coverage declined in a range of 0.11% to a little over 39%. 

Shares of Honasa Consumer, the parent of Mamaearth, plummeted 39.34% after the company reported a loss and a decline in operating revenue in the second quarter of the ongoing fiscal year (Q2 FY25). The All India Consumer Products Distributors Federation’s (AICPDF’s) allegations on the company about it offloading excessive stocks to distributors further put pressure on the stock.

Recently listed foodtech major Swiggy also ended the week in the red. Its shares fell 3.16% to end the week at INR 416.25. 

Its archrival Zomato also ended the week in the red, going down 2.02% to end the week at INR 264.15. However, the BSE on Friday (November 22) announced the addition of the Deepinder Goyal-led company to its benchmark index, BSE Sensex. This came a week after the NSE said that it would add the company’s shares to the futures and options (F&O) segment. 

Last week’s top gainer Menhood, Ola Electric, Go Digit, Awfis, RateGain were among the other losers this week. 

Meanwhile, shares of 10 new-age tech companies gained in a range of 0.68% to a little over 17% this week. Continuing its bull run, Paytm emerged as the biggest gainer this week. The fintech company’s shares ended the week 17.04% higher. 

Other gainers this week included Zaggle, Yudiz, CarTrade, EaseMyTrip, FirstCry, Delhivery, DroneAcharya, Nazara Technologies and PB Fintech. 

Amid all these, logistics major BlackBuck made a lukewarm public market debut on November 22. Shares of BlackBuck’s parent Zinka Logistics got listed on the BSE at INR 279.05, a premium of 2.21% over its IPO price of INR 273. The stock ended the first trading session down 6.76% at INR 260.20. 

Brokerages were divided on BlackBuck’s IPO. KR Choksey gave the IPO an “Avoid” rating, stating that it has remained loss making even at the EBITDA level over the past three years, unlike its peers. 

On the other hand, Hem Securities gave a “Subscribe” rating to the IPO with a long-term perspective, citing BlackBuck’s strong unit economics and promoter-led management team. 

Meanwhile, in the broader market, Sensex ended the week 1.98% higher at 79,117.11 and Nifty 50 gained 1.59% to close at 23,907.25.

The markets were closed on Wednesday (November 20) on account of elections in Maharashtra. 

Commenting on the broader market movement this week, Vinod Nair, head of research at Geojit Financial Services, said that investors looked to capitalise on attractive valuations of stocks after the recent correction.

It is pertinent to note that this week also saw prosecutors in the US indicting Adani Group’s chairman Gautam Adani, his nephew Sagar Adani, among others, in an alleged bribery case in India for obtaining solar power plant contracts. Following this, the shares of the Group’s listed entities plummeted on November 21. 

“Investors shrug off Adani fears and expect state election results to bring more stability to the market. Many of the blue chips are available at below-average valuations, while meaningful corrections in mid and small cap indices provide opportunity for broad-based momentum,” Nair added.

The counting of votes for the assembly elections in Jharkhand and Maharashtra and various bypolls across the country took place on Saturday (November 23). While the Bharatiya Janata Party (BJP)-led Mahayuti alliance secured a landslide victory in Maharashtra, Jharkhand Mukti Morcha (JMM)-led INDIA got a comfortable majority in Jharkhand.

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

After the addition of BlackBuck, the total market capitalisation of the 30 new-age tech stocks under Inc42’s coverage stood at $86.47 Bn at the end of the week. Minus BlackBuck’s $540 Mn market cap, the market cap of 29 new-age tech companies stood at $85.93 Bn as against $85.6 Bn at the end of the previous week.

Honasa Shares Tank On Distribution Woes 

Witnessing one of the biggest weekly falls for a new-age tech stock in recent history, shares of Mamaearth parent Honasa Consumer ended the week 39.34% lower at INR 224.30. With this, its market cap also plunged below the unicorn mark and stood at $862.9 Mn at the end of the week. 

The beauty and personal care (BPC) major disclosed its Q2 FY25 after market hours on November 14. It slipped into the red during the quarter and posted a consolidated net loss of INR 18.6 Cr as against a profit of INR 29.4 Cr in Q2 FY24. Revenue from operations also declined nearly 7% to INR 461.8 Cr from INR 496.1 Cr in the same quarter last year.

The company attributed the grim financials to its ongoing transition from a super-stockist-led distribution model to a direct distributor model as part of “Project Neev”.

The company’s shares slumped 20% in the first trading session this week. Amid this, the AICPDF accused Honasa of engaging in unethical stock dumping practices, claiming that distributors across the country are grappling with issues related to “unsold stocks nearing expiry” from Honasa. 

Further, the body also said that the BPC major has unsettled credit notes amounting to approximately INR 50 Cr.

AICPDF’s national president Dhairyashil Patil warned that the federation would be compelled to consider a nationwide decision of non-cooperation if these issues remain unresolved. 

While Honasa rubbished the allegations, investors turned extremely bearish on the stock. Its shares plunged to new 52-week lows in every trading session this week. The company’s shares touched a low of INR 222.15 on Friday. 

Shares of Honasa ended Friday’s session 30.77% below its IPO price of INR 324 .

Paytm’s Bull Run Continues

After touching all-time lows after RBI’s action against Paytm Payments Bank earlier this year, shares of Vijay Shekhar Sharma-led Paytm have now rallied to near its 52-week high. Shares of the company ended the week at INR 900, up over 17% from the previous week. With this, its market cap also zoomed to $6.78 Bn.

On November 19, the company rolled out ‘UPI International’ for select overseas markets. Under this, Paytm users will be able to make UPI transactions from countries like the UAE, Singapore, France, Mauritius, Bhutan and Nepal. 

Besides, the week also saw brokerage firm Bernstein double down on its “Buy” rating on the company’s shares. The brokerage raised Paytm’s price target to INR 1,000 per share from the previous target of INR 750.

The new target suggests an upside potential of more than 10% from the stock’s last closing price.

Ola Electric Touches A New Low 

The electric two-wheeler maker continued to see a downward movement at the bourses this week, with its shares touching yet another all-time low. After touching a low of INR 66.60 on November 22, Ola Electric’s shares recovered slightly to end the week at INR 69.14. 

The stock has been under selling pressure for quite some time now over concerns about its losses and complaints about after-sales service. 

Amid these, Inc42 reported this week that Ola Electric has initiated a restructuring exercise to cut its workforce by approximately 500 employees. The exercise, aimed at enhancing operational efficiency and reducing redundancies in a bid to achieve profitability, will affect employees across departments and levels.

In Q2 FY25, Ola Electric reported a net loss of INR 495 Cr, which, although 5.5% lower year-on-year, marked a 43% increase from INR 347 Cr in Q1 FY25.

In a post-earnings call, Ola Electric founder and CEO Bhavish Aggarwal said that the company would look to keep its operating expenses flat or slightly lower in the coming quarters.

The post New-Age Tech Stocks Slide Amid Volatility In Broader Market, Honasa Slumps 39% appeared first on Inc42 Media.

Weak financials of companies in the second quarter of the fiscal year 2024-25 (FY25) and continuing FII outflow resulted in the Indian equities market ending in the red this week as well.

In line with this, shares of new-age tech stocks under Inc42’s coverage also declined. Twenty four new-age tech stocks fell in a range of 0.08% to about 17% this week. 

The companies listed on the SME platforms were the worst hit this week within the new-age tech stocks universe. Yudiz, which reported a 99.9% decline in its net profit to INR 5K in H1 FY25, emerged as the biggest loser this week. The blockchain and IT development company’s shares plummeted 16.56% to end the week at INR 70.30 on NSE SME. 

The second biggest loser this week was DroneAcharya, which reported a 62.1% decline in its profit after tax (PAT) to INR 1.50 Cr in H1 FY25 from INR 3.96 Cr in the year-ago period.

Shares of the BSE SME-listed company fell 16.48% to end the week at INR 112.25, recovering slightly from a 52-week low of INR 110 it touched earlier in the week. 

Other losers of the week included RateGain, Delhivery, Nykaa, FirstCry, Nazara Technologies, all of which reported their Q2 numbers this week – many of them after the close of market on the last trading day of the week. 

The markets were closed on November 15 (Friday) on account of Guru Nanak Jayanti. 

Despite the gloomy investor sentiment, shares of four new-age tech companies ended in the green this week. The biggest gainer was NSE Emerge-listed Macobs Technologies, the parent of D2C men’s grooming brand Menhood. 

Shares of Macobs went up 10.94% to end the week at INR 175.90 after touching an all-time high of INR 178 on November 12 (Tuesday). On November 14 (Thursday), the company reported a 190% year-on-year (YoY) increase in its PAT to INR 1.84 Cr in H1 FY25.

Fintech SaaS company Zaggle also posted a 167.67% YoY jump in its consolidated net profit to INR 20.29 Cr in Q2 FY25 on November 13 (Wednesday). Its shares ended the week 2.43% higher at INR 426 on the BSE. 

The other two gainers of the week were Zomato and PB Fintech.

Amid the bloodbath, the much-anticipated listing of foodtech major Swiggy took place this week. After listing at a premium of 6% to 8% to its issue price, shares of the company zoomed about 17% in the first trading session. However, the stock fell in the second trading session to end the week at INR 429.85 on the BSE. 

Brokerage JM Financial initiated its coverage of Swiggy with a ‘Buy’ rating and a price target of INR 470. 

Meanwhile, in the broader market, Sensex ended the week 2.49% lower at 77,580.31 and Nifty 50 fell 2.35% to close at 23,532.70. 

With this, both the benchmark indices have gone down about 5% in the past month. Observing that the Indian domestic markets are in a “correction terrain”, Geojit Financial Services’ head of research Vinod Nair said that the trigger for this has been the weakness in Q2 FY25 results, which has forced foreign investors to look away. 

“Consolidation may continue in the near term; however, the beaten-down value stocks may witness bottom fishing due to their potential outlook,” he said. 

Asit C. Mehta Investment Intermediates’ AVP of technical and derivatives research Hrishikesh Yedve pointed out that the market volatility cooled down in the last trading session of the week.

“Overall, the short-term trend is down but as long as Nifty holds above 23,500, a pullback rally could be possible,” he said. 

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

Post the addition of Swiggy, the total market capitalisation of the 29 new-age tech stocks ended the week at $85.6 Bn. Minus Swiggy’s $11.39 Bn market cap, overall market cap of the 28 new-age tech stocks ended the week at $74.21 down from last week’s $75.03 Bn. 

DroneAcharya’s H1 Profit Slumps 

Investors turned extremely bearish towards DroneAcharya on the back of a poor performance in the first half of the fiscal. The company’s shares hit a 52-week low of INR 110 on November 13, a day after it reported a significant dent in its bottom line for the first half of the year. 

The drone company reported a 62.1% drop in consolidated PAT to INR 1.50 Cr in H1 FY25, compared to INR 3.96 Cr in the same period last year.

Revenue from operations, however, rose 28.8% to INR 26.90 Cr from INR 20.88 Cr in H1 FY24. Including other income of INR 75.86 Lakh, total revenue for H1 FY25 amounted to INR 27.66 Cr.

Total expenses increased 51.8% to INR 25.23 Cr from INR 16.62 Cr in the previous year. 

The decline in PAT was in contrast with the company’s earlier projections. In September, DroneAcharya said it was targeting a 200% growth in revenue, EBITDA, and PAT in FY25. The company had reported a consolidated PAT of INR 6.2 Cr in FY24.

Later in the week, DroneAcharya said that it has secured a contract worth INR 14.80 Cr from US-based American Blast Systems (ABS).  

MapmyIndia Plunges On Weak Q2 Numbers

Shares of MapmyIndia fell 15.36% to end the week at INR 1,740.10, after the company reported a decline of 8% in its consolidated PAT to INR 30.35 Cr in Q2 FY25 from INR 33.09 Cr in the previous fiscal year. 

Revenue from operations rose 14% to INR 103.67 Cr from INR 91.08 Cr in Q2 FY24.

MapmyIndia chairman and managing director Rakesh Verma attributed the decline in the margin to continuous investment in the consumer business for future growth. He also noted that the company’s Mappls app downloads reached 25 Mn at the end of H1 FY25 as against 10 Mn at the end of H1 FY24.

“The overall market we serve faced challenges in Q2 FY25, but we managed to perform reasonably well thanks to our open orders and strong teamwork,” MapmyIndia COO Sapna Ahuja said.

MapmyIndia also announced a joint venture with Hyundai Autoever, a wholly owned subsidiary of Hyundai Motor, in Indonesia. MapmyIndia will invest $4 Mn for a 40% stake in the new entity, PT Terra Link Technologies, with Hyundai controlling the remaining stake. 

The joint venture will allow MapmyIndia to expand into the Indonesian market and map the entire country. Verma and Hyundai’s Asia Pacific president Jin Ho Kim have been nominated as directors of the company

Distribution Model Changes Hit Honasa

Shares of Varun and Ghazal Alagh-led Honasa Consumers fell 3.17% to INR 369.75 this week, with its market cap ending at $1.42 Bn.

The company also reported its Q2 financials on Thursday after market hours. It slipped into the red and posted a consolidated net loss of INR 18.6 Cr during the quarter compared to a profit of INR 29.4 Cr in Q2 FY24. 

Revenue from operations also declined nearly 7% to INR 461.8 Cr from INR 496.1 Cr in the same quarter last year.

The company attributed the loss and revenue decline to its ongoing transition from a super-stockist-led distribution model to a direct distributor model as part of its “Project Neev”.

This shift, aimed at optimising the distribution network, impacted both revenue and profitability, with Honasa posting a negative EBITDA margin of 6.6% as against a positive 8.1% in Q2 FY24. 

Cofounder Varun Alagh indicated the need to adjust the product mix and refine investment strategies. The company plans to focus on a narrower range of categories and strengthen its offerings in hero SKUs to drive future growth.

The post New-Age Tech Stocks Bleed This Week As Correction Continues In Broader Market appeared first on Inc42 Media.

The Indian equities market continued its downward spiral this week. After touching their all-time highs at the end of September, benchmark indices have fallen over 7.50%. In line with this slump, Indian new-age tech stocks saw a bloodbath this week. 

Of the 28 new-age tech companies under Inc42’s coverage, 27 saw their share prices fall in a range of 1.38% to just under 20% this week. Paytm was the only company to end in the green this week. The stock rose 2.71% to close the week at INR 744.60. The upswing came as a result of the fintech giant getting the National Payment Corporation of India’s (NPCI’s) approval to onboard new customers for its UPI offering.

A number of new-age companies – Zomato, Go Digit, Fino Payments Bank, and ixigo – declared their September quarter financials this week and ended the week in the red. The biggest loser of the week was IndiaMART InterMESH. The B2B marketplace’s shares sank 19.20% to INR 2,438.35. 

In the broader market, Sensex fell 2.01% from last week to 79,402.29. Nifty 50 declined 2.86% to end at 24,180.80. 

Commenting on this, Vinod Nair, head of research at Geojit Financial Services, said that the bearish investor sentiment is due to geopolitical tensions, sustained selling by FIIs, and lack of triggers in the domestic market.

“We expect the consolidation to continue in the short term; a reversal in trend will depend on a slowdown in FIIs’ selling intensity and the outcome of the US presidential election. The domestic macros are largely favouring the market with the unveiling of strong PMI data and the RBI reiterating the economic growth forecast for FY25. Moderation in valuation, pickup in earnings in H2FY25, and an expectation of a rate cut by the RBI in 2025 will provide support to the market,” he said.

Meanwhile, Prashanth Tapse, senior VP of Mehta Equities, said that subpar Q2 results added to the selling pressure.

“The dismal Q2 earnings so far has aggravated the investors’ woes, while persistent FII selling continued to create havoc in the market. Despite the Chinese stimulus announcement, falling crude oil prices is an indication that major economies continue to feel the slowdown pinch,” he said.

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

The total market capitalisation of the 28 new-age tech stocks under Inc42’s coverage declined to $74.41 Bn at the end of this week from $77.56 Bn last week.

Paytm Gets NPCI Boost

Fintech major Paytm continued on its long road of recovery despite broader market pressure. Shares of the company ended the week at INR 744.60, up 2.71% from last week. With this, the market capitalisation of Paytm stood at $5.63 Bn at the end of the week as against $5.48 Bn at the end of the previous week. 

The company posted a consolidated profit after tax (PAT) of INR 930 Cr in Q2 FY25 as against a loss of INR 292 Cr in the year-ago period, largely due to the INR 2,048 Cr sale of Paytm Insider to Zomato. However, revenue from operations fell 34% to INR 1,1660 Cr in the reported quarter from INR 2,519 Cr in Q2 FY24.

Paytm shares fell over 6% during the intraday trade after the company declared its financial results on October 22. However, the fortunes reversed as the Vijay Shekhar Sharma-led company received the NPCI’s nod to onboard new UPI users. Following this, the company said it has begun onboarding new customers via its app.

Meanwhile, Paytm also explained its future plans for the business along with its Q2 results. The company said it has begun its experiment with a default loan guarantee (DLG) for merchant loans. It announced its first FLDG agreement with SMFG India Credit. 

“DLG costs are going to be paid back to us, hence translating to higher revenue. So, in a way, the business won’t be requiring any additional equity capital or investment because of this rotation,” CEO Sharma said in the post-earnings call. 

Paytm also said that it has started an experiment with running audio ads for Meesho, Coca Cola, Mondelez and Dabur on its PoS device. 

Brokerage Citi increased its price target (PT) for Paytm to INR 900 from INR 440 earlier. The brokerage said that the regulatory risks for Paytm now appear “largely behind” and the company has announced plans to offer DLG in accordance with the RBI’s guidelines.

Meanwhile, Jefferies maintained a ‘Hold’ rating on Paytm with a target price of INR 700 per share. It noted that Paytm’s Q2 EBITDA loss decreased due to a 1% quarter-on-quarter reduction in costs, along with a recovery in the top line. The brokerage is also positive about DLG, and said that it could bring Paytm closer to EBITDA breakeven.

Zomato Delivers Another Profitable Quarter 

Shares of the foodtech major ended 1.38% lower from last week to end at INR 253.85. With the decline, its market capitalisation stood at $26.67 Bn as against $26.72 Bn in the previous week. 

The company was in the news this week for the following reasons:

• Zomato posted an increase of 389% in its net profit in the September quarter to INR 176 Cr from INR 36 Cr in the year-ago quarter. However, profit declined 30% from INR 253 Cr in the preceding quarter. Operating revenue increased 68.5% to INR 4,799 Cr in Q2 FY25 from INR 2,848 Cr in the year-ago period.
• The company granted nearly 20 Lakh equity shares to eligible employees under various employee stock option plans (ESOPs).
• The foodtech major received the approval of its board to raise up to INR 8,500 Cr via qualified institutional placement (QIP). CEO Deepinder Goyal said that the capital will strengthen Zomato’s balance sheet.
• Zomato will be acquiring an 8% stake in innovative kitchen appliances maker Byondnxt.
• The company confirmed on October 24 that it has hiked its platform fee for the fourth time this year to INR 10 ahead of the festive season.

Following the upbeat results, brokerages maintained their positive outlook on Zomato. Axis Securities gave Zomato a ‘Buy’ rating and increased the PT to INR 350 from INR 280. The brokerage believes that a strong brand value and increasing demand for B2C business and quick commerce has placed Zomato in a favourable position for growth in FY25 to FY26.

“From a long-term perspective, it is believed that Zomato has built a resilient business model by securing multiple strategic verticals and delivering broad-based growth. The company has also established robust capabilities that will enable it to gain market share moving forward. Strong brand value and increased market share will enhance revenue visibility,” the brokerage said. 

Meanwhile, ICICI Securities also maintained its ‘Buy’ rating for Zomato and gave it a PT of INR 300. 

IndiaMART Falls After Q2 Results

Despite doubling its net profit in Q2 FY25, shares of IndiaMART fell 19.20% to end the week at INR 2,438.35. Its market capitalisation declined to $1.73 Bn from $2.14 Bn from last week. 

IndiaMART reported its Q2 numbers on October 19. Its profit nearly doubled to INR 135.1 Cr from INR 69.4 Cr in the same quarter previous year. Revenue from operations jumped 18% to INR 347.6 Cr during the quarter under review from INR 294.6 Cr in Q2 FY24. 

The company’s unique business inquiries in Q2 FY25 stood at 28 Mn, while revenue collected from customers increased 6% YoY to INR 356 Cr during the quarter. 

However, Jefferies downgraded the company from ‘Buy’ to ‘Underperform’, citing weak subscriber growth, and reduced the PT to INR 2,540. The company’s paying subscriber grew about 4% YoY during the quarter.

Jefferies said that while the company reported in-line Q2 results, subscriber growth remained weak, leading to a moderation in collections growth. The brokerage also forecasted collections growth for IndiaMART to range between 10-15% unless subscriber additions improve. 

Meanwhile, Motilal Oswal maintained its bullish outlook on the stock but cut its PT to INR 3,500. “We continue to see IndiaMART as a key beneficiary of the technology adoption by India’s MSME universe and a shift to a formalised ecosystem. We believe that the company is poised to drive significant value, owing to its industry leading position in the segment,” the brokerage said. 

The post Bloodbath In New-Age Tech Stocks Amid Broader Market Crash, Paytm Only Gainer This Week appeared first on Inc42 Media.

Indian new-age tech stocks witnessed a mixed week on the bourses amid volatility in the broader domestic equity market.

Out of the 28 stocks under Inc42’s coverage, 14 gained during the week in a range of 0.1% to 16%. Continuing its rally, NSE Emerge-listed TAC Infosec was the top gainer this week.

TAC’s shares jumped almost 16% during the week as it announced a new partnership with Google to assist developers and organisations in meeting the tech giant’s mobile application security standards.

CarTrade was the second-biggest gainer this week, with its shares rallying 10.9% on the BSE. It was followed by Awfis, which gained almost 7%, and ixigo, which went up about 6.8%.

Zaggle, Yudiz, PB Fintech, and DroneAcharya were among the other gainers this week.

Meanwhile, 14 stocks declined during the week, with Zomato being the biggest loser. Shares of Zomato nosedived over 7%, while EasyMyTrip fell 6.4%. ideaForge fell 5.1% on the BSE.

Nykaa, Ola Electric, Delhivery, Yatra, Menhood, Mamaearth, Tracxn, TBO Tek, Go Digit, RateGain, ideaForge, and FirstCry were the other losers this week, falling in a range of 0.1% to 4%.

Amid geopolitical uncertainties and lack of strong domestic cues, benchmark indices Sensex and Nifty fell 0.19% and 0.44% this week. However, both the indices ended the last session of the week in green, with Sensex closing at 81,224.75 and Nifty at 24,863.4.

The IT indices were negatively impacted after Infosys provided a subdued outlook for its Q2 earnings.

Vinod Nair, head of research at Geojit Financial Services, said, “A sustained selling pressure from FPIs, muted Q2 earnings expectations, and elevated valuations acted as a headwind for the market. Insipid demand and volatility in input prices are the hindrance in earnings during the quarter.” 

However, he said that the long-term outlook for the domestic market remains robust due to strong economic growth forecasts and expected pickup in capital expenditure. “We expect the market to be range-bound in the short term with mixed bias, while investors should turn more sector- and stock-specific in such a time,” Nair added.

Prashanth Tapse, senior VP (research) at Mehta Equities, also said that geopolitical tensions, coupled with persistent FII outflows from the domestic markets, led to caution in the market.

According to Siddhartha Khemka, head of research, wealth management at Motilal Oswal, consolidation is expected to continue due to mixed global cues and lack of domestic triggers. 

Amid the Q2 earnings season, stock-specific actions are expected.

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

The 28 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $77.56 Bn as against $81.48 Bn last week.

Zomato Slumps Amid Fundraise Plans

Shares of foodtech major Zomato nosedived a significant 7.2% to end the week at INR 257.4 on the BSE. 

The decline came amid the company’s announcement to raise funds plans via qualified institutional placement (QIP). 

In The News For:

• As per media reports, Zomato is planning to raise INR 8,500 Cr (about $1 Bn) via QIP. The startup did not disclose the quantum of the fundraise in its exchange filing. Its board will meet on October 22, to consider and approve the proposal.
• Besides, Zomato’s independent director Gunjan Soni stepped down from the company’s board last week citing “increased professional commitments”.
• As per a media report, Zomato is also looking to modify and relaunch its logistics business ‘Xtreme’ after suspending it earlier this year due to poor demand.

While Zomato’s shares gained in the first trading session of the week, they saw a sharp decline in the next four consecutive sessions.

Its shares have gained 108% year to date.

EaseMyTrip At Almost A Three-Year Low

After a sharp slump in its share price at the end of last month, EaseMyTrip is struggling to get back on track. The stock fell in all five trading sessions this week.

Shares of EaseMyTrip fell 6.4% to end the week at INR 32.01 on the BSE. The shares last traded at this level in December 2021.

While the stock has been under pressure almost throughout the year, it fell sharply after cofounder and CEO Nishant Pitti offloaded 24.65 Cr shares of the company. Amid this, the traveltech major approved a 1:1 bonus share issue this week.

The company said that it would be issuing 177.2 Cr shares at a face value of INR 1 each. It would require INR 177.2 Cr for implementing the bonus share issue.

The company’s shares have declined 20.6% year to date.

Nazara’s New Acquisition

Nazara obtained the shareholders’ approval this week to acquire a significant stake in Moonshine Technology, the parent firm of online poker platform Pokerbaazi.

As part of the gaming major’s ongoing acquisition spree, Nazara entered into a definitive agreement to acquire a 47.7% stake in Moonshine Technology for INR 831.5 Cr through a secondary transaction last month.

The company said it received the shareholders’ nod for the deal at its extraordinary general meeting held on October 12.

Shares of Nazara declined in the middle of this week but recovered later to end the week in the green. Overall, Nazara gained 0.33%, ending at INR 926.8 on the BSE.

Currently, its shares are trading over 8% higher year to date.

The post Mixed Week For New-Age Tech Stocks Amid Market Volatility, Zomato Emerges As Biggest Loser appeared first on Inc42 Media.

The Indian equities market remained under pressure for the second consecutive week amid the start of the Q2 earnings season. While the broader market saw a decline this week, new-age tech stocks witnessed a positive week. Seventeen of the 28 new-age tech stocks under Inc42’s coverage gained in a range of 0.02% to under 15% this week.

NSE Emerge-listed blockchain and IT development startup Yudiz emerged as the biggest gainer this week, with its shares jumping 14.51% to INR 64.70. 

Other gainers this week included fintech major Paytm, Awfis, FirstCry, Zomato, Menhood, IndiaMART InterMESH, among others. 

Interestingly, Nykaa ended the week flat at INR 192. During the week, the beauty ecommerce giant projected its revenue to grow in the “mid-twenties” in Q2 FY25. It also began its foray into the quick commerce segment with the launch of a 10-minute delivery pilot in some parts of Mumbai.

Meanwhile, shares of 10 startups ended the week in the red, dropping in a range of 0.10% to just under 9%. Ola Electric emerged as the biggest loser this week, with its shares falling 8.94% to INR 90.19. Zaggle, TAC Infosec, PB Fintech, Nazara Technologies, Yatra, and MapmyIndia were among the other losers this week.

In the broader market, Sensex ended the week 0.73% lower at 81,381.36 and Nifty 50 fell 0.46% to 24,964.25. 

Geojit Financial Services’ head of research Vinod Nair said that there is a bearish sentiment due to subdued estimates for Q2 earnings. 

“The Indian market is currently in a phase of consolidation due to premium valuations and a subdued outlook for Q2 results. In contrast, FIIs are capitalising on arbitrage opportunities in the Chinese markets, driven by stimulus measures and low valuations,” he added. 

During the week, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) kept the interest rates unchanged. However, it changed its stance to “Neutral” even as the key focus remains on inflation.

“Looking at the current geopolitical scenario, the RBI had little choice but to remain focused on inflation and balanced growth at the same time. By keeping the repo rates unchanged and shifting from ‘accommodation’ to ‘neutral’, the MPC has taken a very calculated stance and is being watchful,” Bajaj Broking’s managing director Manish Jain said. 

Meanwhile, the initial public offering (IPO) space for new-age tech companies was buzzing with activities this week as well. While Flipkart-backed logistics startup BlackBuck received SEBI’s go ahead for its INR 550 Cr IPO, Inc42 learnt that B2B marketplace unicorn Zetwerk has also initiated initial discussions with investment banker JP Morgan for an IPO. Meanwhile, edtech startup PhysicsWallah roped in Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as the bankers for its proposed IPO next year. 

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

The total market capitalisation of the 28 new-age tech stocks under Inc42’s coverage grew to $81.48 Bn at the end of this week from $80.85 Bn last week.

Controversies Hit Ola Electric’s Ride

The share prices of two-wheeler EV major Ola Electric took a hit this week as the company found itself amid controversies and a lot of scrutiny. Ola Electric’s shares ended nearly 9% lower this week, with its market capitalisation falling to $4.72 Bn. 

Ola Electric was in the news this week for: 

• Last Sunday, Ola Electric founder and CEO Bhavish Aggarwal engaged in a social media spat with comedian Kunal Kamra on the latter’s comments on the after-sales services of the former.
• Following this, the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric for alleged violation of consumer rights, misleading advertisement and unfair trade practices.
• The Ministry of Heavy Industries (MHI) asked the Automotive Research Association of India (ARAI) to verify if the EV maker is honouring warranties and maintaining the requisite service centres.

Despite the issues, brokerages remain bullish on the company. Goldman Sachs has a ‘Buy’ rating on the stock, with a price target of INR 160. BofA Securities also initiated its coverage on the company with a ‘buy’ rating and a price target of INR 145.

Another Strong Week For Paytm

Continuing on the recovery path, shares of Paytm briefly crossed the INR 750 mark this week after many months. The stock ended the week at INR 724.15, up 4.16% week-on-week. With this, its market cap also touched $5.48 Bn.

The upswing came after CEO Vijay Shekhar Sharma reiterated the fintech giant’s commitment to its core consumer payments business. Sharma said that Paytm will look to reinvest in the consumer payments business segment. 

“Payments remain our primary business, and the merchant side continues to be strong. However, we lost a significant consumer base due to regulatory constraints. Moving forward, we aim to reinvest in the consumer payments business area,” he said at a CII event on Monday. 

A day after his comments, Paytm shares surged over 15% to INR 753.60 on October 8.

The company’s decision to sell its entertainment ticketing business to Zomato for INR 2,048 Cr is expected to provide it the necessary capital to streamline operations and reinvest resources.

Earlier in October, Paytm also reaffirmed its plans to double down on the use of artificial intelligence (AI). As part of this, it recently announced the appointment of its payments CTO Manmeet Dhody as ‘AI Fellow’ to drive projects related to AI innovation in business. It also elevated senior VP of Technology Deependra Singh Rathore as its new payments CTO. 

EaseMyTrip Mulls Issue Of Bonus Shares 

Shares of travel tech startup EaseMyTrip touched a fresh 52-week low of INR 31.10 during the intraday trading on October 7. However, the stock gained later in the week to end at INR 34.20, a gain of 2.67% from the previous week. Its market capitalisation stood at $0.72 Bn at the end of the week. 

The gains come after the startup said its board will consider an issue of bonus shares on Monday (October 14).

With the announcement, EaseMyTrip ended the downward spiral which began at the end of the last month, when CEO Prashant Pitti divested a significant stake in the startup. On September 25, he sold 16.91 Cr shares for INR 37.22 apiece, 6.73 Cr shares for INR 37.42 per share, and 1 Cr shares for INR 38.28 apiece. With this, his ownership in the travel tech startup declined to around 14%, nearly half of the 28% at the end of the June quarter. 

EaseMyTrip has issued bonus shares twice in the past. In February 2022, the company issued bonus equity shares in a 1:1 ratio. Later, in October 2022, the board approved the issuance of bonus shares in a 3:1 ratio, along with a stock split.

The post New-Age Tech Stocks Gain Despite Decline In Broader Market, Yudiz Biggest Gainer This Week appeared first on Inc42 Media.

In a tumultuous week for the broader Indian market, new-age tech stocks witnessed mixed investor sentiment. Eleven of the 28 stocks under Inc42’s coverage gained in a range of 0.15% to just a little under 13% this week. 

Jaipur-based D2C male grooming brand Menhood emerged as the top gainer this week. Shares of Menhood’s parent Macobs Technologies ended the week at INR 145, up 12.93% from last week.

Other gainers of the week included Paytm, PB Fintech, Go Digit, RateGain, among others. 

Meanwhile, 17 startups ended in the red this week, falling in a range of 0.88% to over 7%. Car marketplace CarTrade emerged as the biggest loser this week, with its shares tanking 7.36% to end the week at INR 907.75.

Delhivery, EaseMyTrip, Nykaa, Awfis, Ola Electric, and Zomato were among the other losers this week.

It is pertinent to note that the market was closed on October 2 on account of Gandhi Jayanti. 

Meanwhile, the week saw the four-week momentum in the broader market coming to a screeching halt. While Sensex fell 4.5% to end the week at 81,688.45, Nifty50 went down 4.4% to 25,014.60.

Escalating geopolitical tensions in the Middle East triggered a decline in the global markets this week over their impact on fuel prices. Besides, the stimulus measures announced by China led to global investors shifting their focus to the Chinese market from the Indian market.

Vinod Nair, head of research at Geojit Financial Services, said that the decline in the Indian market was broad based this week. He expects the market to be under pressure for some time. 

“The spike in oil prices due to the mounting tensions in the Middle East may add input cost inflation and thereby impact the earnings visibility of domestic companies. The market is likely to witness a consolidation phase as the expensive valuation and unfavourable macro situation may influence investors to adopt a sell-on-rally strategy,” he said. 

Meanwhile, Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Interrmediates, said that the indices broke their key support base and are indicating fresh weakness, which may lead to further downward movement.

Meanwhile, 41 companies filed their IPO papers in September, the highest ever recorded in a single month, amid the bull run in the broader markets. 

In the startup context, coworking space provider DevX became the latest to file a draft red herring prospectus (DRHP). Its public issue will consist solely of a fresh issue of 2.47 Cr equity shares. 

Besides DevX, foodtech major Swiggy, which filed its updated DRHP with SEBI on September 26, got shareholders’ nod this week to increase the size of fresh issue in its IPO to INR 5,000 Cr from INR 3,750 Cr earlier.

Commenting on the IPO trends, Pantomath Financial Services Group’s founder Mahavir Lunawat said, “Increasing number of growth stage businesses shall hit the street. Moreover, we will have a trend of multinationals coming to tap the Indian capital market. Besides, several other market liquidity parameters, notably monthly mutual fund flow has doubled since last quarter and we are getting close to INR 40,000 Cr of money every month. This has fuelled capital market buoyancy phenomenally.”

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

The total market capitalisation of the 28 new-age tech stocks under Inc42’s coverage dipped to $80.85 Bn at the end of this week as against $81.69 Bn last week.

Honasa’s UAE Troubles

Shares of Mamaearth parent Honasa Consumers plunged 6.27% to end the week at INR 427.95. With this, its market cap also fell to $1.65 Bn. 

It is pertinent to note that the stock touched an all-time high at INR 546.50 on September 10. 

The primary reason behind the decline in the stock price this week was a ruling by a Dubai court in connection with the company’s dispute with its former UAE distributor RSM General Trading. 

Honasa said on Friday that a Dubai court upheld its order directing attachment of its assets. However, the court rejected the RSM General Trading’s demand to cancel the trading licence of Honasa’s subsidiary Honasa Consumer General Trading LLC. 

The company said that it will appeal against the Dubai court’s latest ruling. Honasa also said that the order will have no financial impact, adding that it is in the process of initiating contempt proceedings against RSM General Trading in the Delhi HC for failing to comply with the court’s previous ruling.  

Despite this, the stock ended over 4% lower on the BSE on Friday.

On Saturday, the company clarified that it does not own any asset in the UAE and its Dubai subsidiary has been exempted from the attachment order. 

CarTrade Continues To Fall 

In its third consecutive week of loss at the bourses, shares of CarTrade saw a big dip this week. The stock crashed 7.36% to end the week at INR 907.75. Besides, its market cap also fell to $510 Mn. 

During the week, Goldman Sachs Asset Management said that it increased its stake in the startup to 7.19% from 5.15% at the end of the June quarter. Goldman Sachs, along with its associated entities, acquired an additional 9.78 Lakh shares of CarTrade via open market transactions, it said in an exchange filing. 

In the previous week, Warburg Pincus exited the startup by divesting its entire 8.64% stake in the auto marketplace for INR 375.1 Cr. Most of the shares were picked up by Mirae Asset Mutual Fund, which bought 30.22 Lakh shares at INR 920 per share. 

It must be mentioned that shares of CarTrade gained 6.02% to touch a 52-week high at INR 1,034.50 on the BSE during the intraday trading on September 25. However, the stock has fallen about 12% from there. 

TAC Infosec Gains On The Back Of International Expansion

Shares of NSE Emerge-listed TAC Infosec ended the week at INR 723, up 10.40% from last week. Its market cap also jumped to $90.16 Mn. 

The startup made multiple acquisition announcements this week. In an exchange filing on September 30, the cybersecurity startup said it acquired US-based CyberSandia with an aim to enhance its regional presence and expand its global operations. CyberSandia holds an exclusive government contract to provide IT services to New Mexico, it said.

Last month, the startup had said that it would acquire CyberSandia for $25,000.

TAC Infosec also announced the acquisition of WOS, a wholly owned subsidiary of TAC Cyber Security Consultancy LLC, based in the UAE. The move is aimed at meeting the growing demand for advanced cybersecurity services in the Gulf Cooperation Council (GCC) region.

“Both developments are part of TAC Security’s consistent growth and focus on innovation in the cybersecurity space. Its ESOF (Enterprise Security in One Framework) platform continues to be adopted by enterprises and governments worldwide to combat evolving cyber threats, enabling the company to lead the way in comprehensive vulnerability management and cybersecurity solutions,” the startup said in a statement. 

The new UAE subsidiary will enable the company to diversify its client base and provide cybersecurity services to cross-border clients throughout the GCC, according to the statement.

Earlier, TAC Infosec said it acquired 590 new customers in the first quarter of FY25, of which 149 clients came from the US. Back then, it said it was looking to bolster its global expansion. 

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Even as the broader market continued to rally, a majority of the new-age tech stocks ended in the red this week. Nineteen of the 28 stocks under Inc42’s coverage fell in a range of 0.2% to over 16% this week.

Travel tech startup EaseMyTrip emerged as the biggest loser as its cofounder and CEO Nishant Pitti offloaded almost half of his stake in the startup. The stock ended the week 16.27% lower at INR 34.85 on the BSE.

Fintech major PB Fintech was the second-biggest loser. After hitting a fresh all-time high last week, the stock ended this week 15.3% lower at INR 1,638.75 on the BSE.

Zomato, Ola Electric, TAC Infosec and Nazara Technologies were among the other losers this week. 

Meanwhile, travel tech startup TBO Tek emerged as the biggest gainer this week. Its shares ended the week 5.37% higher at INR 1,853.8. 

Including TBO Tek, nine new-age tech startups gained in a range of 0.35% to over 5% this week. Go Digit, ixigo, Paytm, MapmyIndia, Nykaa, DroneAcharya, Zaggle, and ideaForge were the other gainers this week.

The broader domestic market continued its upward march for the fourth consecutive week. Benchmark indices Nifty50 and Sensex hit fresh all-time highs on Thursday (September 26), zooming to 26,087 and 85,462, respectively. 

While Sensex ended the week 1.2% higher at 85,571.85, Nifty50 gained 1.5% to end at 26,175.15. The Fed rate cuts and stable economic data points continued to drive the bull run during the week. 

Commenting on the market performance, Vinod Nair, head of research at Geojit Financial Services, said, “A visible trend is that this rally was predominantly led by large cap stocks, which are relatively fairly valued compared to mid and small caps, which are showing signs of exhaustion. A risk to the rally is elevated valuations.”

It is pertinent to note that except Zomato, the rest of the 27 tech stocks under Inc42’s coverage are all mid and small cap stocks.

Moving forward, Nair believes that investors will be focusing on the Q2 earnings. 

Meanwhile, Hrishikesh Yedve, AVP of technical and derivatives research at Asit C. Mehta Investment Interrmediates, said that the rally is likely to continue in the short term.  

“Technically, the weekly scale index has formed a big green candle. Moreover, the index on a weekly scale has managed to close above the breakout of the rising channel pattern, indicating strength. In the short term, as long as Nifty holds above the breakout level of 26,000, a “buy on dips” strategy should be adopted. On the upside, 26,500 will be an immediate short-term target for the index,” he added. 

It is worth noting that the Indian startup ecosystem is set to witness two much-awaited public market debuts. This week, foodtech major Swiggy filed its updated draft red herring prospectus (DRHP) with the Securities and Exchanges Board of India (SEBI), while fintech unicorn MobiKwik received the market regulator’s approval for its IPO. 

The fintech unicorn is set to raise INR 700 Cr from its IPO, which comprises only a fresh issue of equity shares. Meanwhile, Swiggy’s proposed IPO comprises a fresh issuance of shares worth INR 3,750 Cr and an offer for sale (OFS) component of 18.53 Cr equity shares. 

If and when the two IPOs materialise, the total count of new-age IPOs this year will zoom up to 12. 

“As global markets recalibrate after 2021’s peak, India is stepping into the spotlight with unprecedented vigour. This year, the Indian IPO market is poised for a significant leap, with large corporations in IPO Street, demonstrating growing investor confidence in the Indian market. Both local and international investors are driving this momentum, and all signs point to continued growth and opportunities ahead,” Pantomath Capital Advisors said. 

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

The total market capitalisation of the 28 new-age tech stocks under Inc42’s coverage dipped to $81.69 Bn at the end of this week as against $85.49 Bn last week.

Paytm Continues Its Bull Run

After a significant dip in its share prices earlier this month, fintech major Paytm has been on a slow and steady upward movement on the bourses. 

After slipping to the INR 325 level in February, shares of the startup have more than doubled in seven months. Shares of Paytm ended this week 1.32% higher at INR 672.4 on the BSE.

Recently, brokerage firm Emkay Global changed its rating on the stock to ‘add’ from ‘reduce’. It also raised Paytm’s price target (PT) to INR 750 apiece from INR 375 earlier. 

The brokerage believes that Paytm’s loan distribution business will gradually reaccelerate and pointed out that its broking and insurance distribution business has already turned profitable.

Further, it also said that the sale of its “heavy” movies and events ticketing business to Zomato is also expected to pay dividends in the remainder of the ongoing fiscal, as it will add on to its cash reserves and reduce net loss. 

For the first time since the RBI slapped restrictions on Paytm Payments Bank earlier this year, the stock touched a price of INR 724.85 during the intraday trading mid-week.

However, it is pertinent to note that Paytm shares are still trading 65.61% lower than their listing price. Speaking about the startup’s listing in November 2021, Paytm CEO and founder Vijay Shekhar Sharma recently lamented the choice of the investment bankers. 

“I have been an entrepreneur long enough now. I have a regret of not choosing the correct bankers for the IPO,” Sharma said during Tie Delhi NCR’s India Internet Day 2024 on Friday (September 27).

ICICI Securities, JP Morgan, Goldman Sachs, Morgan Stanley, HDFC Bank, and Citi were its investment bankers. 

PB Fintech Dips After Report Of Foray Into Healthcare Sector

After touching an all time high of INR 1,966 on September 20, shares of the fintech major witnessed a downward spiral to end the week at INR 1,638.75. This marked a 15.3% decline in its share prices on a week-on-week basis.

The selling pressure came after CNBC-TV18 reported about the company’s plans to foray into the healthcare sector on Wednesday (September 25). The report cited sources as saying that the startup is exploring plans to venture into the healthcare sector by establishing its own chain of hospitals.

“This move aims to unlock new value within the healthcare ecosystem, diversifying the company’s portfolio beyond its current focus on insurance and financial services,” the report said.

As the stock came under pressure following the report, PB Fintech issued a clarification stating the company has not confirmed any plans as of now. Further, it said that it will intimate the bourses “if and when” it arrives on a decision around its healthcare foray.

“We believe if claims were a quicker and smoother experience it would increase the number of people buying health insurance. It would be much better if interests were aligned between insurers and hospitals to give customers amazing claims experience and we believe that would grow insurance penetration,” the company said.

Meanwhile, Morgan Stanley said after the healthcare report that it is premature to evaluate any potential financial effects from PB Fintech’s healthcare venture since the management has not shared any additional details. The brokerage believes that investor sentiment regarding the stock will largely hinge on the scale of the capital expenditure – whether it is a one-time cost or an ongoing commitment.

The brokerage retained its ‘equal-weight’ rating on the stock with a PT of INR 1,375.

BofA also recently upheld a ‘Neutral’ rating on PB Fintech, setting a PT of INR 1,975. 

EaseMyTrip Tanks As Founder Reduces Stake 

Shares of EaseMyTrip closed 16.27% lower at INR 34.85 this week. The shares plummeted to touch the lower circuit at INR 32.78 apiece mid-week amid major block deals in the company.

This led to its market cap falling to $737.65 Mn at the end of this week from over $880 Mn last week.

On September 25, EaseMyTrip CEO Nishant Pitti sold 24.65 Cr shares in the startup through multiple block deals worth INR 920 Cr. 

Pitti’s stake in the travel tech startup decreased to about 14% from over 28% at the end of the June quarter, when he held 49.84 Cr shares.

However, the startup also made a few other announcements this week. This included EaseMyTrip’s exclusive partnership with PhonePe to launch its “hotels segment” on the fintech platform, which would allow PhonePe users to access services such as hotel deals, special offers, and cab services.

Last week, the company revealed plans to acquire a 30% stake in Rollins International Private Limited for INR 60 Cr ($7.15 Mn) and a 49% stake in Pflege Home Healthcare Center LLC for INR 30 Cr ($3.5 Mn).

Shares of EaseMyTrip are trading 14.13% lower year to date.

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

The Indian equity market continued its upward march this week, with the benchmark indices touching all-time highs. Despite this bull run, investor sentiment towards new-age tech stocks took a hit during the week. Eighteen of the 28 startups under Inc42’s coverage declined in a range of just below 1% to under 7% this week. 

Recently listed travel tech startup ixigo took the biggest hit this week, with its shares plunging 6.99% to INR 144.75. Unicommerce, FirstCry, Awfis, Go Digit were among the other stocks which ended in the red this week. Shares of gaming major Nazara also dipped 1.55% to end the week at INR 1,034.10 despite its acquisition spree and plans to raise INR 900 Cr funding. 

Meanwhile, 10 new-age tech stocks gained in a range of just under 1% to over 8% this week. The biggest gainer this week was NSE Emerge listed D2C brand Menhood, with its shares gaining 8.51% to end the week at INR 137. PB Fintech, Zomato, Paytm, and RateGain were among the other gainers this week. 

Amid this, Nifty 50 and Sensex touched their all-time highs on Thursday (September 19) and Friday (September 20). This was the third consecutive week when the indices tested new all-time high marks. Sensex ended the week 1.9% higher at 84,544.31, while Nifty 50 jumped 1.7% to end at 25,790.95.

The major driver of this bull run was the interest rate cut by the US Federal Reserve in the middle of the week. The US Fed cut the interest rate by 50 basis points for the first time in nearly four years. 

Vishal Goenka, co-founder of IndiaBonds.com, noted that the Fed’s decision comes amid significant differences in central bank policies worldwide. For example, Brazil’s central bank raised rates this week, and the Bank of Japan is also considering a similar move.

“India has remained well insulated from the rest of the world rate movements for now and the tremendous rally in risk assets plus projected economic growth keep an inflationary underlying force in the economy,” he said. 

Asit C. Mehta Investment Interrmediates’ AVP of derivatives research Hrishikesh Yedve said that the ongoing bullish momentum is likely to continue and take Nifty 50 towards 25,900-26,000 levels.

“On the upside, 26,000 will act as an immediate hurdle for Nifty. On the downside, 25,500 will serve as an immediate support for Nifty, followed by 15-DEMA support, which is placed near 25,300 levels. As long as Nifty stays above 25,600, a “Buy on Dips” strategy is advisable for traders,” he said. 

Amid the bull run on the bourses, the IPO boom also continues in the Indian equity market. Foodtech major Swiggy is expected to publicly file DRHP soon for its mega IPO. It is said to be looking to raise $1.4 Bn through the IPO. Its IPO is likely to comprise a fresh issue of equity shares worth INR 3,750 Cr ($450 Mn) and an offer-for-sale (OFS)  component worth INR 6,664 Cr (around $799 Mn). 

Commenting on the IPO trends, Pantomath Capital Advisors said, “With 59 IPOs raising INR 63,862 Cr  in 2024 and an average first-day gain of 30%, far above the global average of 22%, the demand for Indian IPOs is clear. Both local and international investors are driving this momentum, and all signs point to continued growth and opportunities ahead.”

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

Despite stock prices dipping, the total market capitalisation of 28 new-age tech stocks under Inc42’s coverage stood at around $85.49 Bn at the end of this week as against $82.93 Bn at the end of last week.

PB Fintech Zooms To New Highs

Shares of the parent of Policybazaar touched a fresh all-time high of INR 1,966 on September 20. The stock ended the week at INR 1,934.70, up 6.67% from last week. With the rally, PB Fintech’s market cap zoomed past the $10 Bn mark, touching $10.56 Bn by the end of the week. 

The rally came two weeks after the startup released its annual report, in which its founders Yashish Dahiya and Alok Bansal said that it will focus on improving its claim process. PB Fintech is also aiming to increase the share of secured loans in its total disbursal to 50% by FY26 from 12% now.

“Average is a terrible metric, especially in the risk category. We already work with partners to look at digitally acquired risk, and how we can look at smaller & smaller customer segments to provide the right product. Similarly, the claims experience is as much about the Insurer side processes as it is about the actual experience in the garage or hospital,” the founders said. 

For the uninitiated, PB Fintech operates digital insurance marketplace Policybazaar, lending platform Paisabazaar, online platform for financial products.

In the first quarter of the financial year 2024-25 (Q1 FY25), PB Fintech reported a consolidated net profit of INR 59.98 Cr as against a loss of INR 11.9 Cr in the year-ago quarter. It was its third consecutive profitable quarter. Operating revenue surged 51.8% to INR 1,010.5 Cr in Q1 FY25 from INR 665.6 Cr in the year-ago quarter.

Zomato’s Market Capitalisation Goes Past $30 Bn Mark

Zomato also saw its share price touch a fresh all-time high this week. The startup’s shares touched INR 292.90 on September 20 before ending the week at INR 290.70. The stock zoomed 6.52% week-on-week. 

With the bull run, the market cap of Zomato crossed the $30 Bn mark and stood at $30.75 Bn at the end of the week. 

The company’s shares have been rallying for almost a year on the back of its strong financial performance. Zomato’s profit after tax in FY24 stood at INR 351 Cr as against a net loss of INR 971 Cr in the previous fiscal. Besides, its EBITDA also grew to INR 42 Cr as against an EBITDA loss of INR 783 Cr it made in the year.

Zomato’s consolidated net profit zoomed multifold to INR 253 Cr in Q1 of FY25. Its revenue from operations jumped 74% to INR 4,206 Cr in Q1 FY25 from INR 2,416 Cr in the corresponding quarter last year.

Moving forward, the company is working on scaling up its going out vertical with the launch of its new app ‘District’. For this, it announced the acquisition of the entertainment and ticketing business of Paytm for INR 2,048 Cr in August. 

Following this, JP Morgan’s revised price target (PT) of Zomato’s stock’s price target (PT) to INR 340, indicating a 40% upside on September 5.

The brokerage attributed its bullish outlook to Zomato’s expansion of Blinkit, which has been successfully scaled across all major metro cities after demonstrating its viability in the NCR region. 

The brokerage anticipates Blinkit’s scale will significantly boost monetisation through channel margins and advertising revenue. Moreover, improved store-level economics are expected to enhance the company’s EBITDA outlook further, it said. 

Meanwhile, Zomato’s GST troubles continued to grow deeper in the week. In the week, West Bengal GST authorities slapped a fresh tax demand and penalty order of over INR 17.70 Cr in the week.

ixigo Emerges As The Biggest Loser This Week

Shares of ixigo continued to go down during the week, dropping 6.99% to INR 144.70. With this, its market cap also declined to $671.7 Mn (INR 5,607.95 Cr). 

Founded in 2007 by Aloke Bajpai and Rajnish Kumar, ixigo generates revenue by selling a variety of travel services, including flights, trains, bus tickets, hotel bookings, and holiday packages. 

Recently, ixigo’s bus ticketing platform AbhiBus partnered with German travel tech company FlixBus as the latter expands its presence in India. 

In Q1 FY25, ixigo posted a 78% increase in its PAT to INR 14.85 Cr compared to INR 8.36 Cr in the year-ago quarter. Revenue from operations rose 16% to INR 181.87 Cr from INR 156.55 Cr in Q1 FY24.

Gross transaction value surged 26.6% to INR 2,988.1 Cr during the quarter as against INR 2,359.1 Cr in Q1 FY24. The startup’s EBITDA soared 62% year-on-year to INR 19.2 Cr in Q1 FY25.

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Indian new-age tech stocks witnessed a mixed week despite the bull run in the broader market, which resulted in benchmark indices soaring to fresh all-time highs.

Fifteen of the 28 new age tech stocks under Inc42’s coverage gained in a range of 0.54% to just under 23% this week. Shares of fintech major Zaggle zoomed to a fresh all-time high of INR 446.40 this week. The stock emerged as the biggest gainer, zooming 22.64% during the week. Recently listed SaaS startup Unicommerce, gaming major Nazara Technologies, Paytm, PB Fintech, and FirstCry were among the other major gainers this week.

Besides Zaggle, the week saw shares of two startups, Mamaearth parent Honasa and foodtech major Zomato, hit fresh all time highs. Zomato gained 4.94% this week to end at INR 272.90, but Honasa slumped 7.20% to end the week at INR 493.45 to end as the biggest loser this week. 

Besides the BPC major, the week saw shares of 13 startups fall in a range of 0.56% to over 7%. Last week’s top gainer TAC Infosec, Nykaa, Awfis and Fino Payments Bank were among the stocks which ended the week in the red.

Meanwhile, benchmark indices Nifty 50 and Sensex touched their all-time highs on Thursday (September 12). While Sensex gained 2.1% this week to end at 82,890.94, Nifty 50 jumped 2% to end at 25,356.50. 

“Despite volatility, DIIs and FIIs flows remained positive as a strong monsoon, and an expectation of an uptick in demand during festive season drove investor sentiment….The market hit a new high as the rate-cut optimism globally (ECB & US Fed) has provided a positive impetus across the global markets,” Vinod Nair, head of research at Geojit Financial Services, said.

In the coming week, Nair believes that market trends will be shaped by the US Fed meeting next week, during which it is expected to announce a rate cut. 

Amid the bull run, the IPO spring continues in the Indian equities market. Pantomath Capital Advisors said that IPO fundraising hit a 27-month high in August, with 10 companies cumulatively raising INR 17,047 Cr.

Moving forward, it expects domestic companies to raise over INR 1.50 Lakh Cr through IPOs in the next 12 months, signalling continued activity and strong investor interest ahead.

Banking on this, Ather Energy became the latest new-age tech startup to file its DRHP with SEBI for an IPO. According to the electric vehicle manufacturer’s DRHP, filed on September 9, its proposed IPO will be a combination of a fresh issue of equity shares worth INR 3,100 Cr and an offer-for-sale (OFS) of up to 2.2 Cr equity shares. 

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

Overall, the total market capitalisation of 28 new-age tech stocks under Inc42’s coverage stood at around $82.93 Bn at the end of this week as against $79.38 Bn at the end of last week.

Zaggle Soars To New Heights

Almost a year after its listing, shares of fintech SaaS startup Zaggle Prepaid Ocean Services are seeing a renewed investor interest. The startup’s shares zoomed 22.64% this week to end the week at INR 437.20. Its market cap also zoomed past $630 Mn this week.  

The startup’s shares have been on an upward momentum in September on the back of multiple new account wins. Zaggle announced bagging contracts from the likes of Blue Star, FCM Travel Solutions, HDFC ERGO, and Founderlink technologies this month so far.

For the uninitiated, Zaggle provides employee expense management platform, corporate employee rewards platform, among others, to enterprises. 

In its annual report, Zaggle claimed to be India’s leading prepaid card issuer, with over 50 Mn cards distributed and more than 2.73 Mn users as of March 31, 2024. Further, it onboarded 620 new corporate clients, including marquee names such as Wipro, Bennett Coleman, and Emcure Pharmaceuticals, in FY24. 

Zaggle’s net profit stood at INR 44 Cr in FY24 as against INR 23 Cr in the previous fiscal year. Operating revenue grew 40% year-on-year to INR 775.6 Cr in FY24.

The startup is aiming to increase its revenue by 45-55% in the ongoing fiscal year. Zaggle’s managing director and CEO Avinash Ramesh Godkhindi said in its annual report, that the increase is expected to come from the startup’s strategy to scale up its products – Zoyer and Save and Propel, and enhance cross-selling efforts. 

“We are diligently working on our US expansion by precisely identifying our Ideal Customer Profile (ICP) and our Product Market Fit (PMF) to ensure targeted success,” Godkhindi said. 

Bulk Deals Derail Honasa’s Momentum

The upward momentum seen in Honasa’s shares since the announcement of its Q1 results came to a halt this week. The stock declined 7.2% to end the week at INR 493.45. However, it started the week on a strong note, touching an all-time high of INR 546.5 during intraday trading on September 10. The jump also led to its market cap breaching the $2 Bn mark.

The upswing came after HSBC reaffirmed its “buy” rating for Honasa and raised its price target to INR 570 from INR 550 earlier. 

The brokerage said that Honasa is expected to achieve over 20% structural growth in the coming years, driven by ongoing margin improvements. It also said that the startup’s house of brands strategy will increase its market share across various high-growth personal care sectors. 

Amid this bull run, a host of the startup’s investors offloaded shares on September 12. Peak XV Partners, Fireside Ventures, Stellaris Venture Partners, among others, cumulatively sold shares worth INR 1,601.68 Cr via bulk deals. The shares were lapped up by Morgan Stanley and ICICI Prudential Life Insurance Company. 

Following the bulk deals, the startup’s shares plunged nearly 6% on September 12 itself. 

Meanwhile, ICICI Prudential’s stake in Honasa increased to 5.48% following the acquisition of fresh shares.

Markets Respond Positively To Nazara’s Acquisition Spree

Gaming major Nazara continued its expansion spree this week and investors reacted positively to it. The shares of the company ended the week 14.05% higher at INR 1,050.40. With this, its market cap rose to over $950 Mn this week. 

Here’re the major events related to the startup from this week: 

• Nazara disclosed its plans to acquire a 15.86% stake in gaming community platform GetStan Technologies Pte. Ltd (STAN) for INR 18.4 Cr (around $2.2 Mn). The purchase will be made through its wholly owned subsidiary Nazara Dubai FZ via a secondary transaction.
• The startup will be making its biggest bet in the form of purchase of a 47.7% stake in online poker platform Pokerbaazi’s parent Moonshine Technology for INR 831.5 Cr through a secondary transaction.
• Nazara’s board is scheduled to decide on approving raising of fresh funds by issuance of equity shares on a preferential basis on September 18.

With the two new acquisitions, Nazara added on to its expansion spree from FY24. In the prior fiscal, it acquired 100% stake in Paper Boat and NextWave. Its subsidiary Sportskeeda acquired Pro Football Network, SoapCentral and Deltia’s Gaming. 

Its gaming subsidiary  NODWIN acquired Freaks4U Gaming, Branded Pte. Ltd, Comic Con India, PublishME, and Ninja Gaming to expand globally.

In its annual report, Nazara reiterated its focus on acquisitions to shore up its revenue. It said it will expand its portfolio of core gaming IPs and reinvest generated cash to acquire new IPs and grow satellite businesses. 

Besides, it is also focusing on esports and adtech entities and expects these ventures to expand into areas like physical play, toys, and AR/VR/XR in the future. 

“With substantial cash reserves and a strong M&A pipeline, we are well positioned to seize further growth opportunities and enhance our trajectory through strategi M&As over next couple of years, driving the future of gaming worldwide from our strong foundation in India,” Nazara’s joint MD and CEO Nitish Mittersain said.

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Indian new-age tech stocks saw a mixed week on the bourses amid a slump in the broader domestic equities market due to global market volatility.

Fifteen of the 28 new-age tech stocks under Inc42’s coverage fell in a range of 0.3% to 10% during the week, with Unicommerce emerging as the biggest loser.

Meanwhile, shares of DroneAcharya declined 8.9%, followed by Ola Electric’s shares nosediving about 7.1% during the week.

Among the other top losers were Menhood, ixigo, Paytm, PB Fintech, Yudiz, and MapmyIndia – all down between 3% and 5%.

Yatra, ideaForge, Delhivery, and FirstCry declined more than 2% but below 3% this week.

On the other hand, NSE Emerge-listed TAC Infosec emerged as the biggest gainer this week, with its shares rallying 10.6%.

Among the other 12 gainers during the week were CarTrade, Mamaearth, Nykaa, Zomato, Awfis, and TBO Tek, with their shares rising in the range of 2% to 7%.

In the broader market, Sensex fell 1.43% to end the week at 81,183.93 and Nifty 50 declined 1.52% to end at 24,852.15. On Friday (September 6), Sensex and Nifty 50 declined 1.24% and 1.17%, respectively.

Speaking on the broader market slump, Vinod Nair, head of research at Geojit Financial Services, said that the domestic market came under pressure on Friday as SEBI’s deadline over disclosure norms for FIIs neared. However, this would not impact India’s lucrativeness to FIIs in the long term, he said.  

Besides, elevated valuations continue to be a concern and the indices are expected to witness a muted trend in the short term, Nair added.

Meanwhile, Siddhartha Khemka, head of research, wealth management, at Motilal Oswal, said that the domestic equities experienced the most significant single-day decline over the past month on Friday due to concerns over a potential slowdown in the US labour market. 

“We expect consolidation mode to continue in the market over the near term,” Khemka added.

Despite the volatility, the IPO optimism remains high. As per reports, Ather Energy is set to file a DRHP with the SEBI for an INR 4,000 Cr+ public offering, almost a month after the INR 6,000 Cr+ IPO of its rival EV player Ola Electric.

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

Overall, the total market capitalisation of 28 new-age tech stocks under Inc42’s coverage stood at around $79.38 Bn as against $80.19 Bn at the end of last week.

All Eyes On EV: EaseMyTrip Forays Into Ebus Making

In an interesting development, online travel aggregator EaseMyTrip announced incorporating a new wholly owned subsidiary Easy Green Mobility to start electric bus manufacturing.

It is looking to invest INR 200 Cr for R&D, product development, and setting up a manufacturing plant over the next 2-3 years. 

While Easy Green Mobility will manufacture ebuses, EaseMyTrip will operate these buses via its other subsidiary YoloBus.

The shares of EaseMyTrip, which have remained volatile with a downward trend since the beginning of the year, jumped over 12% following the announcement on Thursday and ended the day’s trading around 11% higher at INR 43.08 on the BSE. However, the shares slumped the next day to end the week over 6% lower at INR 40.42. 

Unicommerce Slumps After Releasing Q1 Numbers

Shares of recently listed Unicommerce slumped in all five trading sessions this week after posting its Q1 FY25 earnings last Friday (August 30).

With a sharp decline of a little over 10% during the week, the SaaS startup turned out to be the biggest loser. Unicommerce shares ended the week at INR 197.25 on the BSE.

It is pertinent to note that the startup’s profit after tax (PAT) jumped 31% year-on-year to INR 3.51 Cr in Q1 FY25. Even on a quarter-on-quarter (QoQ) basis, profit rose 22%.

Meanwhile, revenue from contract with customers increased 9.2% YoY and 3.5% QoQ to INR 27.46 Cr during Q1.

The sudden fall in its share price could be due to profit booking. Unicommerce made its debut on the bourses at a whopping 113% premium to its issue price. Currently, the shares are trading 14.2% lower than the listing price of INR 230 on the BSE but 82.6% higher than the issue price of INR 108 apiece.

Brokerages Continue To Be Bullish On Zomato 

Shares of foodtech major Zomato, which have surged over the past year or so over its increasing profits and plans to diversify revenue stream, again received thumbs up from brokerages this week.

CLSA raised its price target (PT) on Zomato to INR 353 from INR 350, which currently implies an upside of about 36% to its last close. The brokerage said that its PT increase was to reflect Zomato’s recent acquisition of Paytm ticketing business.

Besides, it also said, “Quick commerce is reshaping India’s retail supply chain by flattening distribution, giving new brands increased visibility and price competitiveness. Blinkit’s parent Zomato will be the largest listed beneficiary, while staples marketers Marico and Hindustan Unilever face risks as their distribution advantage erodes.”

CLSA also sees Zomato’s Blinkit, Zepto, and Swiggy Instamart reaching $10 Bn in gross order value by FY26 and surpassing $78 Bn within a decade.

Meanwhile, JP Morgan also raised Zomato’s PT to INR 340 from INR 208 earlier, implying about a 31% upside to the stock’s last close, on the back of the company’s quick commerce growth. 

In line with the increase in PTs, shares of Zomato jumped over 7% in the last two trading sessions during the week. The stock ended Friday’s trading at INR 260.05 on the BSE, gaining 3.7% overall during the week.

Continuing its spree of experiments, Zomato announced the launch of ‘dark mode’ this week. Its rival, IPO-bound Swiggy also seems to be on the experimentation mode and has launched a number of new features and services over the past few months. This week, Inc42 reported that Swiggy is piloting a large order fleet in the Delhi NCR region.

The post New-Age Tech Stocks Witness A Mixed Week, Unicommerce Biggest Loser With A 10% Fall appeared first on Inc42 Media.

Despite a prolonged bull run in the Indian stock markets, investors turned bearish on new-age tech stocks in the final week of August. Seventeen of the 28 stocks under Inc42’s coverage fell in a range of 0.33% to over 16%. 

Awfis emerged as the biggest loser this week, with its shares crashing 16.38% to end at INR 749.05. Last week’s top gainer TAC Infosec, Zomato, Ola Electric were among the other major stocks which declined this week.

Meanwhile, 11 new-age tech stocks rose in a range of just under 1% to over 12% this week. While Paytm emerged as the top gainer, Go Digit, TBO Tek, PB Fintech, and Honasa were among the other winners this week. 

It must be mentioned that two startups touched fresh all-time highs this week. Shares of Mamaearth parent Honasa touched an all-time high of INR 528.9 on Monday (August 26) and ended the week 8.52% higher at INR 506.05 on the BSE.

TAC Infosec extended its bull run into the first half of the week, with its shares touching an all-time high of INR 853.15 on Tuesday (August 27). However, the cybersecurity SaaS startup’s shares lost steam in the latter part of the week. Overall, the stock declined 3.73% this week to end at INR 745.

In the broader market, Sensex grew 1.5% to end the week at 81,086.21 and Nifty 50 jumped 1.6% to end at 25,235.90. 

Motilal Oswal Financial Services’ research head Siddhartha Khemka attributed Moody’s upgrading India’s GDP growth forecast to 7.2% for 2024 and 6.6% for 2025 from the earlier estimates of 6.8% and 6.4%, respectively, as one of the reasons for the rally this week.

“This (GDP forecast update) and healthy MSCI inflow took markets to new highs. We expect the market to continue its northbound journey with stock-specific action,” he said. 

Meanwhile, D2C meat delivery startup Zappfresh became the latest new-age business to join the queue for a public listing. Earlier this week, its parent DSM Fresh Foods Ltd filed its draft red herring prospectus (DRHP) for listing on the SME platform of the BSE, BSE SME. 

On the IPO trend, Pantomath Capital Advisors said that 17 companies filed their DRHPs with SEBI in the month of August, making it the highest number of monthly filings in over a year. Pantomath anticipates this trend to continue for the remainder of the year. 

“Recently listed IPOs have performed exceptionally well, boosting confidence among both companies and investors. This renewed optimism is prompting investors to look at opportunities in the primary market and driving promoters to raise funds through IPOs,” it said. 

Overall, the total market capitalisation of 28 new-age tech stocks under Inc42’s coverage stood at $80.19 Bn at the end of this week as against $81.39 Bn last week. 

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

Good News For Paytm 

Paytm, which has been hit by regulatory troubles this year, saw a couple of positive developments bolster investor sentiment towards the stock. Shares of Paytm gained 12.14% this week to close at INR 621.80.

Here’s more on the developments: 

• The Vijay Shekhar Sharma-led startup sold its events and movies ticketing business to Zomato for INR 2,048 Cr in an all-cash deal.
• Paytm received the long-pending approval from the Centre for its investment in its payments arm, Paytm Payment Services Limited (PPSL). With this, it will reapply for a payment aggregator (PA) licence from the Reserve Bank of India (RBI).

Getting the PA licence will help the company add new customers for providing online payment aggregation services. 

In a report, brokerage Jefferies said that the immediate business impact of the licence could be marginal for Paytm. However, it has a price target (PT) of INR 420 on the stock, representing nearly 32% downside from its last close.

Besides, Motilal Oswal, on the Zomato-Paytm deal, said that the sale of the entertainment business would offer a financial boost to Paytm, generating significant cash that can be reinvested into other high-potential areas. It maintained a ‘Neutral’ rating on Paytm with a PT of INR 550, and expects the company to turn EBITDA positive by FY27.

Awfis’ Bull Run Ends

After an extended bull run on the bourses, shares of recently listed coworking space provider Awfis crashed this week. 

The startup’s shares plunged 16.38% to end the week at INR 749.05. Earlier on August 22, the stock had touched an all-time high of INR 945.70. 

During the week, Awfis announced a partnership with Nyati Group to set up an additional 3 Lakh square feet of Grade-A workspace in Pune.

Through the partnership, Awfis will introduce premium flexible workspaces in Nyati Group’s commercial properties of Nyati Empress in Pune’s Viman Nagar and Nyati Enthral in Kharadi. It will add 1,67,206 square feet of built up office space in the city. 

Awfis currently offers 1,12,038 seats across 185 centres in 17 cities. Moving forth, the startup plans to further expand across India by adding 40,000 new seats in FY25, taking the total seat count to 1,35,000.

Unicommerce, FirstCry Post First Financials After Listing 

On Friday (August 30), recently listed kids-focussed omnichannel retailer FirstCry and SaaS startup Unicommerce released their first financial results post their listing on the bourses earlier this month. 

FirstCry’s parent Brainbees Solutions reduced its consolidated net loss by 31% to INR 75.68 Cr in Q1 FY25 from INR 110.42 Cr a year ago. Operating revenue increased 10% to INR 1,652.07 Cr from INR 1,496.93 Cr in Q1 FY24. 

The company’s consolidated adjusted EBITDA surged 106% YoY to INR 74.3 Cr, with GMV rising 17% YoY to INR 2,318.3 Cr. FirstCry said it plans to invest INR 100 Cr in its UAE subsidiary to boost operations in the UAE as well as Saudi Arabia.

The company released its financial numbers after market hours. Prior to that, its shares closed at INR 641.40, which was a gain of 0.45% on a weekly basis.

Meanwhile, Unicommerce reported a 31% increase in profit after tax (PAT) to INR 3.51 Cr in Q1 FY25 from INR 2.68 Cr in the same quarter last year. 

Revenue from contracts with customers grew 9.2% year-on-year to INR 27.46 Cr, while total expenses rose 7% to INR 24.28 Cr. Further, its EBITDA surged 61% to INR 4.2 Cr, with EBITDA margin expanding to 15.3% from 10.4% a year ago. 

Unicommerce also declared its numbers after the close of the market. Its shares ended the week 2.90% lower at INR 219.25 on the BSE.

The post Most New-Age Tech Stocks End In Red This Week; Paytm Emerges Biggest Gainer appeared first on Inc42 Media.

New-age tech stocks gained this week on a rally in the broader market due to positive global cues. Eighteen of the 28 new-age companies under Inc42’s coverage rose in a range of 0.38% to just a little under 35% this week.

Cybersecurity startup TAC Infosec, which is listed on NSE Emerge, was the biggest gainer this week. Its shares surged 34.42% to end the week at an all time high of INR 773.90.

Other top gainers of the week included recently listed SaaS startup Unicommerce, coworking startup Awfis, last week’s top loser TBO Tek, and Mamaearth parent Honasa Consumer. 

Beauty and fashion ecommerce major Nykaa touched a fresh 52-week high twice during the week. The stock surged more than 9% to hit a fresh 52-week high of INR 229.9 apiece on the BSE during the intraday trading on August 23. Amid the bull run, its early investor Harindarpal Singh Banga offloaded around 4.1 Cr shares worth INR 851.5 Cr in a bulk deal on Friday. Overall, shares of Nykaa ended the week 16.99% higher/lower at INR 226.90on the BSE.

Meanwhile, 10 new-age tech stocks fell in a range of 0.20% to just under 5% this week. Last week’s top gainer Ola Electric emerged as the biggest loser, falling 4.93% to end the week at INR 126.21.

In the broader market, Sensex grew 0.8% to end the week at 81,086.21 and Nifty 50 jumped 1.1% to end at 24,823.15. 

Vinod Nair, head of research at Geojit Financial Services, said multiple global factors, including diminished likelihood of a recession in the US, ceasefire talks between Israel and Hamas, and decline in crude oil price, led to the rise in the benchmark indices. 

“However, inflationary pressure in Japan and the appreciation of the yen tempered the market’s gains at the end,” he added.

Among the recently listed new-age tech companies, Unicommerce ended the week with 19.09% gains. Meanwhile, FirstCry ended in the red.

It is pertinent to mention that startups like Swiggy, BlackBuck, Avanse Financial Services, Ecom Express, ArisInfra, among others, are awaiting the market regulator’s nod to make their public market debut.

Commenting on the surge in IPOs, Pantomath Capital Advisors said,  “A confluence of factors has boosted India’s primary market. The biggest reason is India’s strong macro environment, which has raised investor confidence. The healthy performance of several new stocks in the last couple of years has also lured investors into investing in new IPOs.”

Overall, the total market capitalisation of 28 new-age tech stocks under Inc42’s coverage stood at $81.39 Bn at the end of this week as against $77.52 Bn last week. 

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

Zomato, Paytm End In The Red After Ticketing Deal 

Following months of speculation, foodtech major Zomato announced the acquisition of the entertainment ticketing business of Paytm for INR 2,048 Cr in an all-cash deal this week. 

With the acquisition, Zomato is looking to scale up its third B2C business, going out, with the launch of its new app ‘District’.

On the other hand, Paytm said that the move to sell the ticketing business will help it focus on its core payments and financial services distribution business. 

However, the deal seemed to have failed to enthuse the investors, as shares of both Zomato and Paytm ended in the red this week.

Zomato ended the week at INR 262.70, down 0.68% week-on-week. This was despite the startup touching a fresh 52-week high of INR 280 at the beginning of the week. 

Antfin Singapore Holding Pte Ltd, an investor in Zomato, also offloaded nearly half of its stake in the foodtech major in two block deals worth INR 4,771 Cr on August 20. 

Brokerages’ response for Zomato’s acquisition of Paytm’s ticketing vertical were largely positive. Emkay gave Zomato a price target of INR 270 by June 2025. Motilal Oswal maintained its ‘BUY’ rating for Zomato, with a target of INR 300. 

“District app could be a small part of Zomato’s business, but if executed correctly, it could give Zomato a strong mind share in the spending patterns of urban consumers across key forms of recreational or staple spending: groceries, food, and recreational “Going out” activities spanning dining, movies, sports, and music,” Motilal Oswal said. 

Meanwhile, Paytm declined 1.67% this week to end at INR 554.50. Post the announcement, Emkay gave Paytm parent One97 Communications a ‘Reduce’ rating and a price target of INR 375. Motilal Oswal gave a neutral rating with a target of INR 550.

Awfis Zooms On Expansion Announcement

On a bull run since its listing in May, shares of Awfis zoomed this week and reached an all-time high of INR 909.75 apiece on August 22. This marked a 110% increase from its listing price of INR 435. The shares of the startup ended the week with a gain of 25.18% at INR 900.45. 

This surge came after the startup announced the launch of two new centres at Mantri Commerce and Vista Pixel in Bengaluru. 

“We are confident that the demand for high-end workspaces will continue to surge in the years to come. Our new centres are strategically located to cater to this growing need, offering unparalleled amenities, cutting edge infrastructure, and a vibrant community that nurtures innovation and collaboration,” Awfis chairman and MD Amit Ramani said.

Awfis operates 1,12,038 seats across 185 centres in 17 cities currently. Moving ahead, it plans to further expand across India by adding 40,000 new seats in FY25, taking the total seat count to 1,35,000.

TAC Infosec Touches Fresh All-Time High 

Shares of cybersecurity startup TAC Infosec zoomed 34.42% this week to end at INR 773.90. The jump came after the company’s update on new customer additions on August 19. 

TAC Infosec said it acquired 250 new customers in July and 590 in the first quarter of financial year 2024-25 (Q1 FY25). 

While 149 of the new clients came from the US, the company also onboarded 20 new clients from India, including Cars24. Moving forward, TAC Security is looking to build on this momentum by upselling additional products and services to its newly acquired clients. 

The startup’s clients include Salesforce, MPL Gaming, Zepto, Juspay, Reliance ADA Group, among others. It has set a target to have 10,000 customers globally by March 2026 and 3,000 by March 2025. 

In a bid to bolster its global expansion bid, the startup also informed the bourses of its intent to acquire US-based cybersecurity firm Cyber Sandia. 

“Cyber Sandia holds a critical State-Wide Agreement with the State of New Mexico for IT Professional Services, which makes this strategic acquisition a key opportunity for TAC Security to significantly bolster its presence in the U.S. public sector. This will also enable the company to expand its cybersecurity services nationwide across the US—the largest market in the world,” the company said in a release.

TAC Infosec reported a net profit of INR 6.33 Cr in FY24, a jump of 23% from INR 5.12 Cr in FY23. 

The post New-Age Tech Stocks Rally In Line With Broader Market, TAC Infosec Top Gainer This Week appeared first on Inc42 Media.

New-age tech stocks witnessed a mixed week on the stock exchanges amid new startup listings and many startups making a beeline to go public. Most of the listed startups saw stock specific action in the final week of the Q1 FY25 earnings season.

Eleven of the 26 new-age tech stocks under Inc42’s coverage gained in a range of over 45% to a little under 1% this week. 

Recently listed electric two-wheeler maker Ola Electric emerged as the top gainer this week, with its shares surging 45.59% to end at INR 132.76. Other gainers included Paytm, Delhivery, Awfis, and Nyk2aa. 

On the other hand, 15 startups fell in a range of little under 10% to 0.37%. TBO Tek was the biggest loser this week. Its shares declined 9.23% to end the week at INR 1,572.40. ixigo, Honasa Consumer, and Nazara Technologies were among the other major new-age tech stocks which ended in the red. 

It is pertinent to note that markets were closed on August 15 on the occasion of India’s 78th Independence day. 

Meanwhile, the broader market saw a revival after a short slump this week. While Sensex gained 0.9% this week to end at 80,436.84, Nifty 50 gained 0.7% to end the week at 24,541.15. 

Analysts attributed the market recovery over the week to a trickle down effect of recovery in the global markets. Prashanth Tapse, senior VP (Research) at Mehta Equities, said that multiple factors improved the global market sentiment this week. “Positive US economic data like cooling inflation and robust retail sales numbers shrugged off recession fears while talks of a rate cut by the US Fed as early as next month fuelled a mega rally across global equities, including India,” he said. 

Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, said that the end of the Q1 FY25 earnings season on a positive note drove the markets recovery this week. 

“We expect the earnings momentum to continue with a steady growth of 15% over the next two years (FY24-26). Softening in US PPI data has raised hopes of rate cuts in the US. Thus, all eyes next week will be on US Fed meeting minutes. Overall, we expect the market to consolidate in a broader range and take cues from global factors,” he said. 

Amid all these, SaaS startup Unicommerce and omnichannel retail brand FirstCry made their market debuts on Tuesday (August 13). Shares of FirstCry’s parent Brainbees Solutions opened at INR 625 on the BSE, a premium of 34.4% to the issue price. Unicommerce listed at INR 230 on the BSE, a premium of 112.96%. Both the startups ended the week higher than their listing prices.

Including the new additions, the total market capitalisation of 28 new-age tech stocks under Inc42’s coverage stood at $77.52 Bn at the end of the week. In comparison, the market capitalisation of 26 new-age tech stocks stood at $72.05 Bn last week. 

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

Ola Electric’s Big Show

After a flat listing on the BSE, shares of Ola Electric have continued to march upwards on the bourses. After touching the upper circuit of 20% on its listing day last week, shares of Ola Electric ended this week 45.59% higher at INR 132.76. 

Here’s a quick recap of the eventful week for Ola Electric as well as Ola Group: 

– The startup’s net loss rose 30% to INR 347 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 267 Cr in the year-ago quarter. Meanwhile its operating revenue grew 32% to INR 1,644 Cr during the quarter under review from INR 1,243 Cr in Q1 FY24.

– During Ola’s annual “Sankalp” event, founder and CEO Bhavish Aggarwal unveiled three new motorcycles under Ola Electric’s portfolio – Roadster X, Roadster, and Roadster Pro. The bikes are priced in the range of INR 74,999 to INR 2,49,999.

– During the event, Aggarwal also revealed cells made at the startup’s Gigafactory. The company is scheduled to integrate these cells in its vehicles by Q1 FY26.

While Ola Electric continues to be riddled with losses, the startup claimed to have recorded the highest sales of its vehicles in Q1. Geojit Financial Services’ senior research analyst Saji John said that despite the loss in FY24, the company seems poised to achieve and enhance profitability in the long-term through improved scalability and vertical integration. 

Post its quarterly results and new product reveals, the startup’s market cap stood at $6.98 Bn at the end of the week. “With the current market share of 38% YTD and robust capex plan, Ola Electric is likely to act as a catalyst for boosting investors’ confidence and could help accelerate the growth and adoption of electric two-wheelers across the country,” John said. 

Nykaa’s Robust Q1 Show

Beauty and fashion ecommerce major Nykaa reported a 152% increase in its consolidated net profit to INR 13.6 Cr in Q1 FY25 from INR 5.4 Cr in the same quarter last year.

Operating revenue grew 22.8% to INR 1,746.1 Cr during the reported quarter from INR 1,421.8 Cr in Q1 FY24.

In a post-earnings call, Nykaa MD and CEO Falguni Nayar attributed the improvement in net profit to recent restructuring efforts and other strategic measures.

As a result of the strong Q1 show, Nykaa’s shares jumped as much as 5.8% to INR 197.35 during the intraday trading session on August 14. The stock ended the week at INR 193.95, witnessing a 1.02% WoW increase. 

Commenting on the stock, Amol Athawale, VP of technical research at Kotak Securities, said that Nykaa’s shares are trading around its 50-day moving average and expected to witness bullish market sentiment. 

“In the short-term time frame, Nykaa is witnessing consolidation. On the higher side, it is witnessing resistance at INR 202-204 and on the lower side 180-185 is the support area. Once it breaches the resistance area, we are of the view that Nykaa’s shares can reach INR 210-215 in the near future,” he said.

TBO Tek Slides Post Q1 Results 

B2B travel portal TBO Tek’s consolidated net profit increased 29% to INR 60.91 Cr in Q1 FY25 from INR 47.3 crore in the same period last year. Operating revenue grew 21% to INR 418.5 Cr during the quarter from INR 344.6 Cr in Q1 FY24. 

TBO Tek’s gross transaction value (GTV) stood at INR 7,940 Cr in Q1, reflecting a 14% year-on-year growth. The hotel segment accounted for 57% of the GTV, while the air segment accounted for 43%. In comparison the hotel and air segments accounted for 46% and 54% of the GTV, respectively, in Q1 2024. 

However, the stock closed at INR 1,572.40 on Friday, with a weekly loss of 9.23%. This was in line with the decline seen in other travel tech companies like Yatra, ixigo, and EaseMyTrip amid rising global tensions.

The post Ola Electric Zooms On The Bourses Amid A Mixed Week For New-Age Tech Stocks appeared first on Inc42 Media.

New-age tech stocks suffered a heavy dent amid a crash in the broader market at the beginning of the week due to a rout in global equities markets. Eighteen of the 25 new-age tech stocks under Inc42’s coverage declined in a range of 0.21% to just under 8% this week. 

Recently listed travel tech startup ixigo emerged as the biggest loser this week, plummeting 7.59% to end at INR 163.20. Paytm, Nazara Technologies, Go Digit, MapmyIndia were among the other prominent losers. 

Amid all these, seven new-age tech stocks gained in a range of over 1% to just under 7%. Fino Payments Bank continued its rally this week as well to emerge as the biggest gainer. The payments bank’s shares zoomed 6.85%.

The week began with a turmoil in the global markets. Most Asian markets slumped on Monday (August 5) due to rising tensions in the Middle East,  weak US economic data spurring concerns on recession, tightening of monetary policy in Japan, among other reasons. 

As a result, benchmark indices Sensex and Nifty50 slumped 2.74% and 2.68%, respectively, on Monday. The India volatility index (VIX) jumped 42% to 20 levels, which, as per analysts, indicates a fear among investors of an economic slowdown.

The sell-off on Monday wiped out over $2 Bn from the market capitalisation of new-age tech companies. 

While the indices managed to recover some of the losses in the subsequent sessions, they still ended the week in the red. While Sensex declined 1.5% to end the week at 79,705.91, Nifty 50 slumped 1.4% to close at 24,367.50. 

Vinod Nair, head of research at Geojit Financial Services, said that this recovery came after the Bank of Japan (BoJ) said that it would not raise interest rates during periods of financial instability. 

“The Indian market experienced a marginal recovery from the uncertainties stemming from concerns about the unwinding of carry trades… While the carry trade issue appears to have eased for now, a gradual increase in interest rates by the BoJ could have some impact in the near future,” he said. 

Meanwhile, Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, said that the markets are likely to consolidate at higher levels due to mixed global cues and absence of any major domestic triggers.

“Over the past few days, Nifty has been volatile with some recovery seen in the last few days. India VIX descended from a level of around 20 to 15 during the week, showing easing cautiousness in the market and improvement in sentiments,” he said. 

Analysts believe that new-age tech stocks will see stock-specific action in the coming week, with some of the companies slated to report their Q1 numbers.

Amid the market turmoil, electric two-wheeler manufacturer Ola Electric became the first automobile manufacturer to get listed on Indian bourses in nearly two decades. Meanwhile, two other startups, FirstCry and Unicommerce, are set to list on the exchanges in the first half of next week. 

Overall, the total market capitalisation of the 26 new-age tech stocks, including Ola Electric, under Inc42’s coverage stood at $72.05 Bn at the end of this week. In comparison, the market capitalisation of 25 new-age tech stocks stood at $67.91 Bn last week.  

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

Ola Electric’s Tepid Debut

The shares of the EV maker listed on Friday (August 9) flat at INR 75.99 on the BSE against its IPO issue price of INR 76. However, the stock rose 20% during the day to close at INR 91.18 apiece. 

It is pertinent to note that the company made its public market debut with a valuation of $4 Bn, 25% lower than its last private valuation of $5.4 Bn. After the jump in the share price on the first day, the startup’s market cap stood at about $4.79 Bn. 

Commenting on the company’s listing, Geojit’s Nair said that the market debut defied grey market expectations of a 4-5% discount. “The positive performance can be attributed to its healthy long-term outlook, 38% market share in two-wheeler EVs, benefits from the PLI scheme, and advantages of vertical integration,” he added. 

Meanwhile, Prashanth Tapse, senior VP of research at Mehta Equities, highlighted the short-term risks for the company. 

“Post listing, the short-term view remains the same due to weak financials and risk of negative cash flows in future. The allotted investors should understand the risks, which could adversely impact its consolidated financial condition post listing. Considering all the factors, we advise only risk-taking investors to continue to hold with a minimum holding period of 2-3 years,” he said. 

It is pertinent to note that Ola Electric continues to be a loss-making entity. In the financial year 2023-24 (FY24), its net loss widened 7.6% to INR 1,584.4 Cr from INR 1,472.1 Cr in the previous year. However, operating revenue jumped over 90% to INR 5,009.8 Cr during the year under review from INR 2,630.9 Cr in FY23.

As of now, all eyes will be on the company’s Q1 financial results, scheduled to be announced next week.

PB Fintech Touches All-Time High But Loses Steam 

PB Fintech, the parent of Policybazaar, reported a net profit of INR 59.98 Cr in Q1 FY25 this week as against a loss of INR 11.9 Cr in the year-ago quarter. While its core online business, which includes Policybazaar and Paisabazaar, grew 29% year-on-year (YoY) to INR 665 Cr, the new initiatives arm saw its revenue jump 131% YoY to INR 346 Cr. 

A day after it reported its results, shares of PB Fintech touched an all-time high of INR 1,664.35 on Wednesday (August 7). However, the stock declined in the subsequent sessions to end 2.93% lower week-on-week at INR 1,452.30. 

The decline can be majorly attributed to the bearish view of brokerages on the stock. Kotak Institutional Equities downgraded its rating on the stock from ‘add’ to ‘reduce’ post the financial disclosure, saying that the price leaves little room for business vagaries.  

Brokerage Nuvama increased its revenue estimates for PB Fintech but lowered margin expectations. 

Mamaearth Posts Robust Q1 Numbers 

Honasa Consumer Ltd, the parent company of D2C brand Mamaearth, reported a 62.9% increase in profit after tax (PAT) to INR 40.2 Cr in Q1 FY25 from INR 24.7 Cr in the same quarter last year.

Honasa continued to reap the benefits of its ‘house of brands’ strategy this quarter. It currently operates six brands – Mamaearth, Auqalogica, The Derma Co, Dr Sheth’s, BBlunt, and the recently-launched colour cosmetics brand Staze. The company noted that its product business increased 20.3%, driven by a volume growth of 25.2% in Q1 FY25.

It is pertinent to mention that brokerages have been bullish on Honasa’s house of brands approach in the past. Earlier in July, Emkay gave the company a price target of INR 525 by June 2025. 

“Our ground checks suggest faster scale up of new brands like The Derma Co and Aqualogica. We foresee a distribution shift in the top-50 towns aiding the Mamaearth brand, where repeats are ensuring. We expect enhanced profitability in hero SKUs, where Honasa is likely to reduce trade margin, given healthy repeats,” it said.

The company’s chairman and CEO Varun Alagh said that Honasa has captured a strong market share in the face wash category online while steadily gaining ground offline, “driven by its house of brands strategy and innovation capabilities”.

However, the company said it has discontinued its ayurvedic beauty products brand Ayuga. It cited the failure to establish a product-market fit (PMF) as the reason behind it. 

Shares of Honasa ended this week 4.31% higher, despite falling 4.6% on Friday to INR 473.35 ahead of the earnings announcement.

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New-age tech stocks surged on Wednesday (August 7) amid a rally in the broader equities market on positive global cues.

In line with the broader market gains, 21 out of the 25 new-age tech stocks under Inc42’s coverage gained in the range of 0.16% to 8.85% in today’s trade .

Menhood emerged as the biggest gainer, with its shares surging almost 9% to close the day at INR 107.6 apiece on NSE Emerge. Menhood made its stock market debut on July 24, with its shares listing at INR 96 apiece, a 28% premium over the issue price of INR 75 per share.

Menhood was followed by Zaggle, with the enterprise tech startup’s shares zooming 7.92% to close at INR 346.80 on the BSE.

Zomato, PB Fintech, MapmyIndia, Paytm and Yatra were among the other major gainers today.

It is pertinent to mention that PB Fintech shares opened at an all-time high of INR 1,664.35 on the BSE today after the parent entity of insurtech major Policybazaar posted a consolidated net profit of INR 60 Cr in the April-June quarter (Q1 FY25).

Amid these, only four new-age tech stocks ended in the red today, falling in a range of 0.21% to 2.99%. Yudiz emerged as the biggest loser, with its shares ending the day almost 3% lower at INR 56.85 apiece on the NSE. 

TAC Infosec, Fino Payments Bank and EaseMyTrip were the other losers today. 

The broader Indian stock market recovered all losses after crashing in the previous trading session, with domestic benchmark indices Sensex and Nifty50 ending the day in the green. 

While the 30-share BSE Sensex rose 1.11% to end the day at 79,468.01, Nifty50 climbed 1.27% to close at 24,297.5.

Commenting on the market trend, Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates, said, “Domestic benchmark indices began higher on Wednesday, driven by strong global sentiment. Nifty opened with a gap up and remained strong throughout the day. As a result, the Nifty concluded the day higher at 24,298. The volatility index, INDIA VIX, fell 14% to around 16.17, indicating drop in volatility.”

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The ongoing Q1 FY25 earnings season resulted in a mixed week for the listed startups under Inc42’s coverage, with stock-specific action seen in the new-age tech stocks. 

Eleven of the 25 new-age tech stocks under Inc42’s coverage gained in a range of over 3% to 17%. Zomato emerged as the top gainer this week, buoyed by its strong Q1 show. Nazara Technologies, Nykaa, and Delhivery were also among the gainers this week. 

Meanwhile, 14 listed saw a decline in their share prices, falling in a range of under 0.1% to 11.27%. IndiaMART InterMESH, MapmyIndia, ixigo, and Go Digit were among the losers this week.. 

ideaForge emerged as the biggest loser this week, with its shares plunging 11.27% to INR 735.40 over its weak Q1 numbers. The drone startup’s profit after tax (PAT) declined almost 94% to INR 1.2 Cr from INR 18.9 Cr in the year-ago quarter.

Meanwhile, the broader market plummeted in the later part of the week after moving up earlier during the week. While Sensex ended the week 0.43% lower at 80,981.95, Nifty 50 declined 0.47% this week to end at 24,717.70. 

Commenting on the market trend, Geojit Financial Services’ head of research Vinod Nair said that the market is displaying signs of fatigue at higher levels as most “positive factors have already been priced in”. Adding to this is the global economic slowdown due to escalating trade tensions, conflicts in the Middle East, and persistently high inflation.

“Going forward, the chances of further consolidation seem elevated due to premium valuations, weak Q1 results, and ongoing global market consolidation,” he said. 

Echoing his sentiment, Mehta equities’ senior VP (Research) Prashanth Tapse said that investors in domestic markets felt the impact of the global market situation and resorted to profit booking as recession fears re-emerged. 

“Despite the slump, our resilient economy and strong fundamentals, along with healthy corporate earnings, would keep the downside limited. Technically speaking, the 25,000 mark for Nifty has now become a psychological hurdle and confirmation of strength can be seen only above that level,” he said. 

In the coming week, all eyes will be on the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), which will meet from August 6-8, Nair said. 

Amid all these, the startup IPO boom continues. Three startups – Ola Electric, Unicommerce and FirstCry – are set to list on the exchanges in the coming weeks.

Ola Electric’s IPO opened on August 2 and received 35% subscription on the first day of bidding on Friday. The EV maker has set a price band of INR 72-76 per equity share for the public issue. At the upper end of the price band, it would raise INR 6,145.6 Cr.

In its IPO note, wealth management and investment advisory Devan Choksey gave Ola Electric’s public offering a “subscribe” rating. It believes that Ola Electric’s continued focus on fostering research and development will help it extend its market share in the two-wheeler EV category. It is pertinent to note that Ola Electric is already the market leader in the segment. 

“The company prioritises R&D and plans to continue launching next-generation EVs. The company’s strategic initiatives include the development of the Ola Gigafactory and a focus on backward integration to enhance supply chain control and cost efficiency. Overall, the growth plans and cost efficiency initiatives justify the valuation,” it said.

FirstCry and Unicommerce’s public offerings are set to open on August 6 and close on August 8. While FirstCry is set to raise INR 4,193 Cr at the upper end of its price band of INR 440-465, Unicommerce’s IPO will see its shareholders sell shares worth INR 276.57 Cr. 

Overall, the total market capitalisation of the 25 new-age tech stocks under Inc42’s coverage stood at $67.91 Bn at the end of this week as against $63.27 Bn last week. 

With that said, here’s a deeper look at the performance of the top three gainers this week. 

Zomato Continues Its Winning Streak

Zomato continued its run on the profit lane in the first quarter of FY25. The company’s profit zoomed 45% on a sequential basis to INR 253 Cr in the quarter, while operating revenue jumped more than 18% to INR 4,206 Cr in Q1 FY25. 

Consequently, shares of the foodtech major touched a 52-week high of INR 278.45 in early trading hours on August 2. Its market cap also inched closer to the $30 Bn mark. The startup’s shares shed some gains as the day progressed but gained 16.88% during the week to end at INR 262.45 apiece. 

Brokerage firm Bernstein gave the company’s shares an “outperform” rating and revised its price target to INR 275 from INR 230 earlier. 

The brokerage said that Zomato is on track to display sustained growth in food delivery, poised for a strong quick commerce performance with Blinkit and a higher uptick in monthly transacting users. 

“We see Zomato as a core internet holding, and our top pick in India Internet,” the brokerage said. 

Meanwhile, JM Financial also increased its price target on the stock to INR 260 from INR 230 earlier. “Zomato continues to be one of our preferred picks in the listed Internet space as we believe it is well positioned to benefit from robust industry tailwinds for the hyperlocal delivery businesses,” it said. 

Bernstein expects Blinkit to grow over 40% year-on-year (YoY). It anticipates Blinkit’s valuation to grow 7X by FY26, primarily due to its aggressive store expansion to reach 1000 stores by FY25 an 2000 stores by 2026.

Meanwhile, Zomato also announced the launch of a new app, District (by Zomato), to scale up its going-out business.

Nykaa Rallies To A 52-Week High

Shares of the beauty ecommerce major Nykaa jumped as much as 10.4% to touch a 52-week high at INR 202 during the intraday trading on July 30 (Tuesday). However, the stock gave up some of the gains to end below the 200 mark. Despite this, the stock rose 9.33% this week.

On Tuesday, the shares saw a multifold increase in their average trading volumes. A total of 53.2 Mn shares changed hands cumulatively on the BSE and the NSE, a 14-fold rise from the stock’s average weekly volume of 3.8 Mn shares. 

While Nykaa is yet to declare its Q1 financial numbers, the startup expects a strong revenue growth of around 22-23% YoY. 

“Our beauty vertical’s revenue growth for the quarter is expected to be around 22-23% YoY, similar to the consolidated entity’s revenue growth. GMV growth is expected to be higher, in the high twenties YoY, in line with long-term BPC (Beauty & Personal Care) industry growth trajectory,” the startup said in July.

On its investor day in June, Nykaa said that it is aiming to achieve a mid-single-digit EBITDA margin by FY27 and then increase it to 10%. It also expects its BPC business to grow at a CAGR of mid-to-late 20% till FY28. 

Post this disclosure, JM Financial raised its price target on Nykaa to INR 230 from INR 220 earlier. ICICI Securities also upgraded the stock to ‘add’ from ‘hold’ and raised the target to INR 195 from INR 175 earlier.

Fino Payments Bank Gains On Uptick In Q1 Numbers

The Rishi Gupta-led payments bank emerged as the second biggest gainer this week as markets reacted positively to its Q1 performance. Fino’s shares ended the week 12.24% higher at INR 336.80.

The payments bank posted a PAT of INR 24.27 Cr in Q1, up 29.7% from INR 18.7 Cr in the year-ago quarter. Revenue from operations grew 25.4% YoY to INR 436.86 Cr in Q1. 

In the quarter, Fino said that over 68,000 new digital accounts were opened on its platform which facilitated 57 Cr UPI transactions. Besides, the payments bank also saw its merchant network rise 25% YoY to 18.1 Lakh. 

Moving forward, the company is looking to enhance its focus on digital payment services. “Our new vertical ‘digital payment services’ is growing on a profitable basis and giving the necessary impetus to our TAM (transaction, acquisition and monetisation) strategy,” CEO and MD Gupta said. 

The current account savings account (CASA) segment contributed INR 93.6 Cr to Fino’s net income in Q1 FY25.

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