It is too early to write off new-age tech companies. They are in a high growth zone, said Dipan Mehta, Director of Elixir Equities, in an interview with ET Now.
"Let us not write off these companies, they are in a very high growth zone and you could be surprised by the numbers they can report on top line basis and some of the other quantitative and qualitative matrices on which we judge these companies," said Mehta.
Mehta believes 2023 could be an excellent year for new-age tech companies and one should have some of them in one's portfolio.
"We like Nykaa and that is one business which I think is going to go from strength to strength. Second of course is Zomato, I think as they look to try and break even on the core food delivery business. It will only be Blinkit which may still drain the company in terms of net losses per se," said Mehta.
"We are not looking at Paytm or CarTrade or some of the other new generation platform companies but we have them on our watch list and at some point in time these companies also can be quite interesting," he added.
Talking about the overall market, Mehta said positive news flows in terms of Covid in China, recession in the US and rate hikes may take indices to new highs in the next year.
"We can expect a lot of positive as well as negative outcomes based on these particular two events per se. I think we heard so much about COVID in China, the recession in the US and Europe, and higher inflation and higher interest rates in 2022 that if we get positive news where it can provide a more supportive and a more strong foundation for a rally, it may take indices to new highs as well," he said.
Mehta said 2023 will be all about the revival of the Indian economy, consumer spending, the capex cycle moving up, among others.
"2023 is going to be a very interesting year and could be a great one as well unless there is again some adverse news on the global front which we have not discounted or which we have not even thought of at this point in time," said Mehta.
Disclaimer: The above article is based on an ET Now interview, published by economictimes.com. Views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.