Paytm share price:
At the time of writing, One 97 Communications aka Paytm traded on 646.10 each, down 1.16% on the BSE. Its market cap is around 41,954 crores. The fintech major has plunged at least over 2.5% on the BSE. 637.15 today.
Paytm has announced the closure of its buyback program from February 13, 2022. The buyback is almost fully subscribed. In its regulatory filing, Paytm revealed, it bought back around 1.56 crore equity shares using a total amount of Rs. 849.39 crore — which would represent 99.98% of the maximum buyback size 850 crores.
Zomato Share Price:
currently, zomato trading on stock 50.35 on the BSE, down 2.80%. The stock has fallen over 3.5% with an intraday low 49.95 each. Its current market cap is around 43,101 crores.
Zomato is in the red mark for three consecutive days. It has lost almost 9% since February 10.
In its shareholders’ letter, Zomato chief financial officer Akshat Goyal said, in January, they exited around 225 smaller cities, which contributed 0.3% of the company’s GOV (gross order value) in Q3FY23 (October-December) .
The reason for exiting these cities was the “not very encouraging” performance in the last few quarters. Also, the payback period for Zomato on their investment in these cities was not acceptable.
Nykaa Share Price:
Leading online fashion retailer, FSN E-Commerce Ventures aka heroine Stocks took the maximum hit on Tuesday. was doing business on 143.15 on the BSE, down 4.34%. The company’s market cap has dropped a bit 40,760 crores. Shares of Nykaa are down about 5.5% year to date.
This will be the second consecutive fall in Nykaa’s shares. Nykaa shares have declined over 8.5% on Dalal Street in two trading sessions.
Nykaa shares faced heat after its Q3 numbers. Company’s net profit decreased in December 2022 quarter 8.4 cores compared to 29 crore in the year-ago period. However, revenue increased 1,462.8 crore in Q3FY23 Vs. 1,098.3 crore in the third quarter of the previous fiscal.
What should investors be doing about new-age tech stocks?
Talking about the fall in new-age digital stocks, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said on Tuesday, “New-age digital stocks are not doing well mainly because the market is not doing well. India is underperforming this year with negative 2.34% return YTD while markets like China, Hong Kong and South Korea are doing very well.”
On the other hand, S Ranganathan, head of research at LKP Securities, believes that price valuations as well as lack of earnings visibility continue to drag down New Age stocks across multiple segments, and investors are yet to gain momentum from their quarterly earnings trajectory. Not excited.
But new-age tech stocks are attractive to buy on the decline because of the potential for good returns ahead.
According to Vijayakumar, when India’s underperformance reverses, new-age digital companies will also start performing. Some of the results in this segment like Paytm are very good. Zomato has also done fairly well, but Nykaa’s results have been below expectations.
“The long-term growth potential of these companies is huge and hence, despite short-term challenges, there are buyers in these stocks, especially after a sharp correction from their listing peak prices,” he added.
Last week, Prabhudas Lilladher had ‘Buy’ recommendation on Paytm and Nykaa shares.
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher at Nykaa said, “The stock has given a bullish candle pattern after a short consolidation period, and we expect it to give around 15%-20% returns from here RSI indicator has also reversed its trend to signal Buy. Support is strong near 130 levels. Consequently, we recommend Buy this stock with a stop loss of 132 and an upside target of 185.
Meanwhile, on Paytm, Parekh said, “The stock has shown a good bullish momentum to come out of the consolidation phase, and further upside bias is expected in the coming days from the crucial 200 DMA level of 630.” There has been a correction. RSI showing strength and with charts indicating extreme upside potential, we suggest to buy and accumulate the stock for a target above 845 keeping a stop loss of 608.”
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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