Ola Electric Zooms On The Bourses Amid A Mixed Week For New-Age Tech Stocks
Last week was filled with mixed fortunes for new-age tech stocks as the market witnessed both ups and downs, marked by new startup listings and a beeline of startups gearing up to go public. The week, which culminated the Q1 FY25 earnings season, saw varied stock-specific actions among the listed startups. Of the 26 new-age tech stocks under scrutiny, eleven managed noteworthy gains ranging from just under 1% to over 45%, while fifteen experienced declines.
Leading the pack of gainers, electric two-wheeler manufacturer Ola Electric surged by an impressive 45.59% to close at INR 132.76. Other notable performers included Paytm, Delhivery, Awfis, and Nyk2aa, showcasing the diverse strength within the tech sector. On the flip side, TBO Tek saw the most significant drop, failing 9.23%, followed by ixigo, Honasa Consumer, and Nazara Technologies, highlighting the volatile nature of tech investments.
While the Indian markets were closed for India’s 78th Independence day, the broader markets managed a modest recovery following a slight slump. The Sensex climbed by 0.9% to end at 80,436.84, and the Nifty 50 edged up by 0.7% to 24,541.15. This recovery was partly attributed to positive economic signals from the US, including cooling inflation and robust retail sales, hinting at reduced recession fears and potential rate cuts by the US Fed next month. This global shift in sentiment is credited with injecting optimism into Indian equities, including those within the tech sector.
The week also marked the market debut for SaaS startup Unicommerce and omnichannel retail brand FirstCry. Both companies listed at a premium to their issue prices and ended the week on a high note. This brings the total market capitalisation of the new-age tech stocks covered to $77.52 Bn, up from $72.05 Bn the previous week.
Diving deeper into individual performance, Ola Electric’s journey post its BSE listing paints a picture of optimism amidst challenges. Despite reporting a 30% increase in net losses for Q1 FY25, the company’s operational revenue showed a promising 32% growth. The unveiling of three new motorcycles and advancements at its Gigafactory underscore the company’s ambitious roadmap.
Beauty and fashion e-commerce platform Nykaa also had reasons to celebrate with a 152% surge in net profit for Q1 FY25, propelled by strategic restructuring efforts and robust operational revenue growth. Its shares, buoyed by these positive outcomes, nudged up by just over 1%.
Conversely, B2B travel portal TBO Tek reported a 29% rise in net profit alongside a 21% growth in operational revenue for the same period. Despite these promising figures, the company’s stocks took a 9.23% hit, underscoring the unpredictable journey tech stocks often navigate in the market.
The week’s market movements reflect the dynamic and ever-evolving landscape of new-age tech stocks. While some companies like Ola Electric and Nykaa surged ahead against odds, others like TBO Tek faced setbacks despite solid financial performances. This dual nature serves as a reminder of the inherent risks and rewards present in the tech investment space, where global factors, investor sentiment, and company-specific news continually shape outcomes.
