New-Age Tech Stocks | Policybazaar crashes 15%, CE Info Systems logs biggest weekly gain; Nykaa reduced to ‘sell’ | Stock Market News
Source: Live Mint
New-age tech stocks such as Paytm, CE Info Systems, Ola Electric among others, witnessed rapid changes in their respective stock prices this week when domestic equity benchmarks Sensex and Nifty 50 logged record highs on strong global cues. Some of the top new-age tech stocks snapped their winning streaks, while others outperformed the frontline benchmarks on robust buying interest.
New-age tech stocks outlook
Zomato – Target Price ₹315
Blinkit’s rapid expansion to new cities is a strategy to gain first-time users and also to 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% and maintain BUY with a revised SoTP-based FV of Rs315 (Rs270 earlier).
FSN E-Commerce Ventures – 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. We believe the fulfillment cost, as a percentage of NSV, may increase in the near term, as the company attempts to cover a larger number of 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% EPS cut for FY2025-27 and a new FV of Rs190. The sharp 34% run-up in stock price in the past three months drives a downgrade in the rating from ADD to SELL.
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 the effect of Valmo on both 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 a period of positive surprises on margin uptick. We increase our margin estimates by 60-100 bps (versus ~100 bps 1Q beat); FV increases to Rs560 from Rs545. BUY.
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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
