Zomato shares that have been in a downwards trend for a while, ended this week as the largest gainer, crossing the INR 60 mark on the very first occasion since the 28th of June
Delhivery which has been doing fairly well in the market, finished this week as the largest loser of the new-age tech stocks.
The benchmark indexes NSE Nifty50 as well as BSE Sensex gained 1.7% and 1.8 percent during the week.
It was a turbulent week for many of the emerging tech stocks listed on exchanges, with some of them experiencing extreme fluctuations and downs.
Delhivery that was performing very well in the market, but ended this week as the largest losser among the emerging tech stocks, with its shares closing around 12% lower on a weekly basis , at the price of INR 555.35 at the BSE. The decline in price of shares was caused by its poor Q1 FY23 performance.
On the other hand Zomato shares Zomato that have been down for a while and ended the week as the top winner, increasing nearly 13% before closing with an INR 61.75. In the Friday session, Zomato shares ended 6.65 percent higher than their closing price and crossed the INR 60 mark on the very first day since the 28th of June. Analysts believe Zomato is now in the best of times. Zomato However, selling off stakes by big investors could create volatility in the near long term.
Additionally, EaseMyTrip, one of the top-performing stocks of new age tech has also slid over 6% this week, closing Friday’s session in INR 399.65.
For Paytm the week was mixed week. The price ended slightly higher in INR 787.15.
All in all, the benchmark indexes NSE the Nifty50 as well as BSE Sensex gained 1.7% and 1.8 percent over the course of the week and ended in 17,698.15 and 59,462.78 and 59,462.78, respectively.
Although the overall trend has been driven by first quarter results of companies in the past few weeks, it could undergo some adjustments in the coming weeks.
Let’s examine the performance of the newly listed tech stocks of the Indian startup scene and the key trends they are observing:
The new-age tech stocks concluded the week with a market cap of $34.28 Bn, which is slightly less that $34.39 Bn Bn in the week prior.
Delhivery Shares drop after Q1 Results
The shares of the logistics company fell by about 7 percent in an INR 599.9 in the BSE on Wednesday (August 10) after the company announced a an increase in its losses by 208 percent up to the figure of INR 399.3 Crore in the first quarter of FY23.
On an annual quarterly-by-quarter (QoQ) base, the loss grew by 233% over the INR 119.8 Cr in the Q4 FY22.
In the meantime, Delhivery’s total revenue increased only 31% year-on-year (YoY) up to 1,794.5 Crore in June.
Since the company’s listing at the Indian stock exchanges in May of this calendar year Delhivery share prices have been performing exceptionally well. They recently saw their shares rise to hit a record peak in the region of 699.95 on July. Delhivery’s market capitalisation also surpassed the INR 50,000 crores last month.
Some brokerages that have favorable ratings for Delhivery have changed their ratings in response to the results from the June quarter. Credit Suisse downgraded the stock to neutral from outperform as well as Edelweiss Securities also downgraded it to ‘hold’ instead of buy..
However, ICICI Securities, which had an ‘Hold’ rating, reduced the stock’s rating to’sell’. IIFL Securities maintained a ‘sell rating.
IIFL Securities said that the quarter’s performance was partly due to issues with execution, which could be a burden on Delhivery’s plans.
Delhivery shares currently trade more than 12 percent higher than their list for INR 493 listed on BSE.
The Paytm’s mixed performance
Paytm’s parent company One 97 Communications began the week with a gain of more than 6 percent in the first day of business (August 8.). The positive mood following its positive Q1 FY23 performance was evident in the early hours this week.
This week, Paytm shares closed 16 percent higher on BSE in the same week that the digital payments startup announced a reduction in its losses over a period of time.
However, the shares lost some gains over the next sessions, and finished about 5% lower on Friday, closing in the range of the INR 787.15 at the BSE.
In addition, Paytm on Friday said it issued 2.9 Million in loans for July. That’s which was up 296% YoY. This equates to a total value of INR 2,090 crore ($264 Mn) for the month. For the three months to 30 June, 2022 Paytm disclosed total loans disbursements in the amount of 8.5 Mn.
Other elements, like that the Reserve Bank of Indian’s (RBI’s) guidelines on digital lending released this week may be a factor in Paytm’s poor performances this week. However, international broker Goldman Sachs said that the RBI guidelines will eliminate a major regulatory burden from Paytm.
“We believe that these recommendations are likely to have minimal or no effect on Paytm’s operations or strategy for monetization. It should aid in the removal of one of the biggest obstacles on the stock.” said Goldman Sachs analysts.
Paytm shares are currently trading with a significant upward trend, said LKP Securities’ Shah.
the Policybazaar’s uncertainty
PB Fintech, the parent company of the insurtech startup Policybazaar announced an net loss for the consolidated company that was INR 204.33 Cr in Q1 FY23. This was increasing 84% YoY on Wednesday (August 10).).
However, its operating revenues jumped 112% YoY, to INR 505.18 Cr in the last quarter.
It stated that its insurance business was seeing a gradual shift of business mix to rural India. In FY22, 59% of the Policybazaar’s insurance business was from cities that are not Tier-I.
The day following the announcement, Policybazaar shares gained 4 percent, and ended the session on Thursday in INR 583.1. But, it retracted the gains it made on Friday, closing with 573.10. 573.10 at the BSE.
The shares of Policybazaar have been in a volatile state for a while now. The shares were volatile in July. shares hit their lowest point at INR 457.6.
“For Policybazaar the trend is to the down side. It’s creating a lower high, lower low, and lower low in the chart for daily trading. But, over the last 10 days, we’ve witnessed certain buying moves at the lower levels,” said Shah.
The stock is likely to experience a new buying momentum once it is over the INR 600 mark. If INR 600 is achieved the stock could move to the threshold of INR 700. Should INR 540 is considered to be on the downside, there might be more selling pressure toward the 500 mark down the other side. In the present it’s a waiting-and-watching scenario, Shah added.