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    Should you buy new-age co stocks? What Envision Capital's Nilesh Shah suggests

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    Should you buy new-age co stocks? What Envision Capital's Nilesh Shah suggests


    Is it a good time to buy stocks of new-age businesses such as Zomato, Paytm and Latent View? Yes and no! Yes, they can't be on your 'avoid' list now, but no, not now, "wait a bit". That is the message from Nilesh Shah of Envision Capital.

    2021 has been one of the most remarkable years for the primary market with a slew of new-age companies like Zomato, Paytm, Latent View and more taking to Dalal Street. But is this a good time to invest in the stocks of new-age companies?
    In an interaction with CNBC-TV18, Nilesh Shah, Managing Director of  Envision Capital, revealed he remains positive on new-age businesses but advised investors to wait for a "weak phase" before buying into the emerging space.
    "New-age businesses will define the future for us... These are businesses for real; these are businesses that have created the right to win. Some of these businesses are going to define the decade ahead for us. In a way, one needs to be very constructive of these businesses on their medium- to long-term potential," he said.
    Shah "wouldn't be surprised if these (new-age business stocks) correct by another 10-15 percent and probably come closer towards their IPO price".
    "At that point of time, they may present a good long-term value," he asserted.
    Here's how some of the new-age company debutants have fared on Dalal Street in the recent past:
    CompanyIssue priceLTP (intraday Jan 4)Listing price NSEListing price vs issue price (%)LTP vs issue price (%)IPO subscription (No. of times)
    Paytm (One97)2,1501,3221,950-9.3-38.51.9
    RateGain Travel425376.5360-15.3-11.417.4
    CarTrade Tech1,618843.91,599.8-1.1-47.820.3
    Fino Payments Bank577385544.35-5.7-33.32
    Easy Trip Planners187544.05212.2513.5190.9159.3
    PB Fintech980969.31,15017.3-1.116.6
    Nazara Technologies1,1012,423.051,99080.7120.1175.5
    FSN Ecommerce (Nykaa)1,1252,123201879.488.781.8
    Latent View Analytics197548512.2160178.2326.5

    Shah believes one needs to wait for a while for "some kind of an interval or interruption to price momentum" since their IPOs. He thinks it is best to wait for "that weak moment, that weak phase" when some of these companies "may report a weak quarter or the market itself may give you the opportunity to buy", he elaborated.
    Shah, who holds a positive view on new-age businesses, says at some point in time one has to be constructive and have them as part of a long-term portfolio. Shah says it will "probably be a huge mistake to completely avoid" these stocks.
    The current price may well be a bit on the higher side from one's comfort zone, but there may be further corrections creating opportunities for investors, he said.

    "Keep in mind that some of these stock prices have corrected quite significantly after their listing highs... Some of the stocks except for maybe a Zomato... others have corrected by about close to 15-20 percent from the listing highs," the market veteran added. 
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