Paytm, Zomato stocks down: The shares of most new-age companies were in the red on Friday with Paytm, Fino Payments Bank and CarTrade Tech hitting fresh lows in intraday trade.
Shares of new-age companies traded lower on Friday with Paytm, Fino Payments, and CarTrade hitting fresh lows amid an overall negative trend in the market. Other 2021 debutants including, Zomato, PB Fintech and Nykaa were also in the red.
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Experts have remained apprehensive about the shares of new-age businesses with veteran Shankar Sharma, in January, even predicting a decline of 80-90 percent by the end of 2022. However, the downtrend in the market today seems to be on the back of the Russia and Ukraine crisis.
Gautam Duggad, Head of Research, Institutional Equities, Motilal Oswal Financial Services said the brokerage doesn’t cover any of the new age firms at present as one has to be adventurous to bet on these stocks.
“Some of them are great franchises; they have built businesses over a period of time, their topline has grown in the last 4-5 years and they have a long runway ahead for growth. However, the problem is cash flows and earnings and the market is getting more concerned given the rate environment. So, one has to be extremely adventurous to take a call on whether the bottom has been made or not,” he said.
Paytm shares declined to an all-time low of Rs 835.65, down 1.6 percent from the previous close, in intraday trade on BSE. This is just days after the stock of the digital payments firm hit its lowest level on February 15.
The fintech's shares, which were trading 1.34 percent lower at Rs 838.30 at the time of writing, have lost almost 5 percent in the past 5 days. Since its market debut on November 18, 2021, Paytm stock has erased 46.31 percent of investors’ wealth.
The shares of Fino Payments Bank, which also hit the D-Street in November, dropped 3.5 percent to hit an intraday low of Rs 311. Since then, the stock has declined 42.47 percent and in 2022 (year-to-date), investors have lost almost 18 percent as against benchmark index Sensex which has corrected 1.92 percent during the period.
CarTrade shares too hit their lowest level today by falling almost 3 percent to Rs 595.45 on BSE. At 12:18 pm, the stock was trading 2.27 percent lower at Rs 599.70. The stock has erased as much as 60 percent of investors’ wealth since listing in August 2021.
Zomato shares sank 3 percent to an intraday low of Rs 86.30. So far in 2022, the stock of the food delivery app has witnessed a sell-off of 38.49 percent.
Dipan Mehta, Director, Elixir Equities had earlier told CNBC-TV18 that Zomato's results are disappointing and at this point in time, it is a stock that is in flux and too many uncertainties surround its growth prospects.
Shares of FSN E-Commerce Ventures, the parent company of beauty e-tailer Nykaa, slipped 3.5 percent to Rs 1397.55 in intraday trade. The stock has hit an all-time low on Monday.
Independent market expert Ambareesh Baliga said, the way Nykaa has pushed through a couple of resolutions and given the opposition from institutional investors, he will possibly wait for levels of Rs 1,000 to decide if the stock is worth buying.
First Published: Feb 18, 2022 1:34 PM IST