New-Age Tech Stocks | Policybazaar crashes 15%, CE Info Systems logs biggest weekly gain; Nykaa reduced to ‘sell’

New-age tech stocks such as Paytm, CE Info Systems, Ola Electric, among others, witnessed rapid changes in their respective stock prices in the last five days when domestic equity benchmarks Sensex and Nifty 50 picked an invincible rally and logged unbeatable record highs on strong global cues. This week, most of the new-age tech stocks registered losses and settled in red, while only a few outperformed the frontline benchmarks on robust buying interest.

Among the biggest trend makers, India’s largest online insurance and lending platform, PB Fintech, which operates Policybazaar, snapped its earlier winning streak and emerged as the biggest loser in the pack. CE Info Systems gained four per cent and outperformed PB Fintech and other major new-age stocks. PB Fintech had earlier overpowered CarTrade Tech to log the biggest weekly gain.

New-age tech stocks: Weekly price trend

During the week, D-Street experts said new age-tech stocks like Zomato, Delhivery Nykaa, Paytm, Unicommerce, First Cry, and Ola Electric have outperformed the nifty. However, Paytm and Nykaa generated positive returns during the week.

CE Info Systems and One97 Communications, which operates fintech giant Paytm, were the only stocks which dominated the new-age tech pack last week logging an increase of four per cent and 1.32 per cent in their stock prices respectively. Deepinder Goyal-led food delivery giant Zomato is the biggest new-age gen stock by market value with a market capitalisation (mcap) of ₹2,45,816.49 crore.

New-age tech stocks outlook

1.Zomato – Target Price ₹315

Blinkit’s rapid expansion to new cities is a strategy to gain first-time users and better utilize its mother warehouses. Several new initiatives are underway to increase customer wallet share: (1) pilot for product returns, especially for branded apparel; (2) larger dark stores and split shipments; and (3) new category addition. 

“Competitive intensity is high, with potential price competition in select cities. We upgrade FY2024-27E Blinkit GMV CAGR to 81 per cent and maintain BUY with a revised SoTP-based FV of ₹315 ( ₹270 earlier),” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
 

2.FSN E-Commerce Ventures (Nykaa) – Target Price ₹190

FSN E-Commerce Ventures (Nykaa) has a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it. As a percentage of NSV, Kotak Securities belives the fulfilment cost may increase soon as the company attempts to cover many cities in the same-day/next-day delivery folds. 

“Consequently, we trim EBITDA estimates for our BPC and eB2B segments, resulting in a 7-11 per cent EPS cut for FY2025-27 and a new FV of ₹190. The sharp 34 per cent run-up in stock price in the past three months drives a downgrade in the rating from ADD to SELL,” said Chouhan.
 

4.Delhivery – Target Price ₹560

Delhivery provides a full range of Logistics services, including delivery of express parcels and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. The 1Q beat helps allay Valmo’s effect on revenue growth and profitability. 

The growing reach and interplay of Delhivery’s businesses are helping it leverage its integrated and interoperable network, increasing its cost lead over its new-age/traditional monoline business peers. It is rightfully skipping new opportunities that limit the use of such network moats. 

“This should likely set the stage for positive surprises on margin uptick. We increase our margin estimates by 60-100 bps (versus ~100 bps 1Q beat); FV increases to ₹560 from ₹545,” said Kotak Securities. The brokerage gave a BUY rating on the logistics stock.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.