Mixed Week For New-Age Tech Stocks; PB Fintech Top Gainer
The past week saw a diverse performance trend among Indian new-age tech stocks, influenced by a combination of an uptick in the broader equity market, standout Q4 fiscal year performances from select startups, and varied stock-specific news.
Of the 20 new-age tech stocks observed, 10 celebrated gains ranging from 0.9% to an impressive over 13%, with PB Fintech standing out as the week’s top performer by witnessing a 13.3% increase in its share price.
Other noteworthy gainers included MapmyIndia, RateGain, EaseMyTrip, and ideaForge. However, it’s important to highlight that ideaForge, a drone startup, encountered a 30% drop in its consolidated profit after tax (PAT) to INR 10.3 Crores in the March quarter.
Conversely, the remaining 10 stocks, including prominent names such as Paytm, Fino Payments Bank, Zomato, Mamaearth, Delhivery, and TAC Infosec, experienced declines ranging from 1.5% to 5.2%, with Mamaearth taking the biggest hit as shares fell by 5.2% on the BSE.
The week also saw financial disclosures from Zomato and Delhivery, alongside a notable market debut from Travel Boutique Online (TBO Tek), which saw its shares listed at a significant premium.
Moreover, the anticipations are high for the listings of two more tech startups this month, including the insurance tech unicorn Go Digit General Insurance and the coworking brand Awfis, which are gearing up for their respective public offerings.
The Indian stock market, on the backdrop of these developments, showcased a robust performance with benchmark indices Sensex and Nifty50 marking appreciable gains. This surge was driven by positive global cues, a moderation in India’s CPI, and lower-than-expected US inflation figures, which collectively buoyed investor confidence despite the looming uncertainties around upcoming general election results.
From a broader perspective, the valuation of the covered new-age tech stocks saw an overall increase, ending this week with a total market capitalisation of $51.35 billion as opposed to $49.02 billion the week before.
Specifically, shares of foodtech giant Zomato witnessed a downturn of 3.4% on the BSE, even as some brokerages revised their price targets on the company, signaling varied expectations on its growth trajectory.
On the flip side, PB Fintech’s shares saw a vigorous recovery, rallying 13.3% this week, thereby crossing the $7 billion market cap threshold. This rebound was notably influenced by the company’s impressive Q4 results and its subsequent inclusion in the MSCI India Index.
As the landscape for new-age tech stocks continues to evolve, marked by both triumphs and challenges, it remains a sector replete with opportunities for keen investors and industry observers alike.
