scorecardresearchDownward spiral! Zomato, Paytm fall over 50% from their all-time highs, Nykaa 41

Downward spiral! Zomato, Paytm fall over 50% from their all-time highs, Nykaa 41

Updated: 14 Mar 2022, 09:54 AM IST
TL;DR.
Shares of newly-age technology companies Zomato, FSN E-Commerce Ventures (Nykaa) and One97 Communications (Paytm) continued their downward spiral with all three stocks hitting their record low in intra-day deals on Tuesday.
Shares of newly-age technology companies Zomato, FSN E-Commerce Ventures (Nykaa) and One97 Communications (Paytm) continued their downward spiral with all three stocks hitting their record low in intra-day deals on Tuesday.

Shares of newly-age technology companies Zomato, FSN E-Commerce Ventures (Nykaa) and One97 Communications (Paytm) continued their downward spiral with all three stocks hitting their record low in intra-day deals on Tuesday.

Shares of newly-age technology companies Zomato, FSN E-Commerce Ventures (Nykaa) and One97 Communications (Paytm) continued their downward spiral with all three stocks hitting their record low in intra-day deals on Tuesday.

The benchmark indices ended over 3 percent lower on Monday, their lowest level in 10 months, however, the markets witnessed a sharp rebound today with both Sensex and Nifty rallying over 2.5 percent.

Despite the steep recovery in the markets, the sentiment for these new-age tech stocks did not seem to improve much.

Zomato fell 8 percent in intraday deals to hit its all-time low of 75.75 per share on BSE, slipping below its issue price of 76 for the first time. However, the stock rebounded a bit after hitting its all-time low.

The stock has fallen 6 percent just in the last 1 week, over 34 percent in January 2020 and 10 percent in February till date. It has more-than-halved and is down 55 percent from its record high level of 169.10 hit on November 16, 2021.

The selling in the stock has continued despite the company narrowing its losses drastically in the December quarter. The firm's consolidated loss narrowed sharply to 63 crore for the quarter ended December (Q3FY22) as against a loss of 352 crore in the last year period. However, the narrowing of the loss did not instill confidence in its investors as analysts remained cautious about the slowdown in its gross order value (GOV) per user due to a fall in delivery charges. The GOV was only up 1.7 percent QoQ.

The company was also helped by a one-time gain of 316 crore from the sale of its stake in Fitso, an online platform that connects people to sporting venues.

Paytm, on the other hand, tanked 3 percent in intra-day deals to hit an all-time low of 840.05 on BSE. Currently, the stock is trading 57 percent lower from its all-time high of 1,961.05, hit on November 18, 2021. It has tanked 61 percent from its issue price of 2,150.

The fintech stock has lost 6 percent in the last 1 week, 31 percent in January 2022 and 7 percent in February till date.

Recently, Paytm announced its third-quarter numbers with the net loss widening to 779.80 crore as against 461.20 crore in the year-ago quarter. Further, the total income also slipped slightly to 999.30 crore in Q3 FY22 from 1,095.60 crore in the previous quarter.

Meanwhile, Nykaa, the fashion and beauty products brand owned by FSN E-Commerce Ventures, also hit its all-time low of 1,482.85 in intraday deals today, down 41 percent from its all-time high of 2,574. This was the sixth consecutive session of loss for the online fashion brand.

In the last 1 week, it has shed over 9.5 percent, while it has fallen 10 percent in February so far and 21 percent in January 2022. It is the only stock among these 3 which is still trading above its issue price of 1,125.

Nykaa also reported a weak set of numbers for the December quarter. Its net profit fell 59 percent YoY to 29 crore, hit by a jump in expenses and subdued demand for personal care and fashion products. Revenue from operations of the company grew 36 percent YoY at 1,098 crore.

As per market experts, the demand in these new-age stocks has declined considerably post their December quarter results and weak growth outlook. They see further consolidation in these stocks and advise long-term investors to buy on dips.

Zomato and Nykaa witnessed bumped listing last year with both stocks listing at over 50 percent premium to their IPO prices. Paytm, however, witnessed a tepid listing.

 

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First Published: 15 Feb 2022, 03:24 PM IST