From Paytm to Nykaa: Here’s what you must know about D-Street newcomers post Q4 results

The primary market was on a roll last year. More than 50 companies entered the stock markets to raise over a whopping Rs 1 lakh crore.

However, the shares of new age internet companies like

, , , and CarTrade have corrected significantly amid the recent decline in the markets. The selloff can be attributed to recent market sell-off and weakness across the globe specifically in the US markets.

Wondering what’s next? Let’s take a deep dive into the numbers and their performance since listing!



Paytm

Paytm initiated its journey as a public company with a 27 per cent fall over its IPO (initial public offering) price on November 18. The scrip listed at a discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150 per share.

The stock has been on a roller-coaster ride since its listing. It touched a 52-week high of Rs 1,961.05 on November 18, 2021, and a 52-week low of Rs 511 on May 12, 2022.

One 97 Communications, which operates Paytm reported a sharp fall in the bottom line in the March quarter as its net loss widened to Rs 761.4 crore compared to Rs 441.8 crore in the same quarter last year.

Revenue from operations came in at Rs 1,540.9 crore, up 88.99 per cent against Rs 815.3 crore it recorded in the same quarter year ago.

Macquarie has kept its Rs 450 target intact, as it believes profitability is still an uphill battle and that Ebitda losses may take 12 quarters to break even.

However, Goldman Sachs has a target price of Rs 1,070 on the stock. “Paytm’s 4QFY22 results exhibited another quarter of strong and improving monetization of the payments vertical, while growth momentum for financial services and cloud businesses remain robust. All this while cash burn has been improving, and the company reiterated its guidance of adjusted Ebitda breakeven by September 2023, which we see as a key catalyst for the stock,” it said.

Zomato

Food delivery platform Zomato got listed in July 2021 with a strong premium. However, the stock is hovering around its issue price of Rs 76 and is down over 56 per cent from its all-time high of Rs 169.

The company’s losses nearly tripled to Rs 360 crore while revenue spiked 75 per cent. For the fiscal year 2022, losses of the company came in at Rs 1,222.5 crore, compared to Rs 816.4 in the previous year.

“We have upgraded Zomato to a buy quite recently when it had its lows for the simple reason that we do believe they are real business models. We were cautious about them at the prices they were trading at at one point in time,” said Aditya Narain, Head of Research,

Securities.

“The reality is that as these valuations have come down and the business prospects have remained more or less the same. What we have seen with Zomato is that the dynamics of the business have also tended to change a bit in that there has been a surge or a focus towards profitability,” he added.

Domestic brokerage firm

is also bullish on Zomato and has a ‘Buy’ rating with a target price of Rs 115.

“Zomato reported significant sequential improvement in all key operating and financial metrics in 4QFY22. With a dual focus on growth and profitability, management guided for sequential top line growth to accelerate to double digits in 1QFY23 while EBITDA losses are also expected to decline meaningfully,” it said.

Nykaa

Shares of Nykaa listed at a premium of 79 per cent to the issue price, marking a strong listing for the online beauty retailer. The stock price never breached its issue price level of Rs 1,125. The counter is now down over 44 per cent from its all-time high of Rs 2,573.7.

The company reported a 57 per cent fall in its consolidated profit at Rs 7.57 crore for the fourth quarter ended March 2022, mainly on account of new investments. It had registered a profit of Rs 17.9 crore in the same period a year ago.

However, the revenue from operations of Nykaa increased by 31.4 per cent to Rs 973.32 crore during the reported quarter, from Rs 740.52 crore in the year-ago period.

Brokerage firm JM Financial has a ‘buy’ rating on Nykaa with a target price of Rs 1,730. However, the brokerage has tweaked its estimates citing near-term risks.

“We believe Nykaa has made strategic investments in fulfilment capabilities, owned brands and brand recognition that will continue to bear fruit in the medium-term,” it added.

CarTrade Tech is trading about 60 per cent below its issue price of Rs 1,618. It touched a 52-week high of Rs 1,961.05 on November 18, 2021, and a 52-week low of Rs 511 on May 12, 2022.

The company reported a net loss of Rs 31.68 crore for the quarter ended March 31, 2022. It reported a net profit of Rs 10.21 crore in the same period previous year.

For the full year 2021-22, it reported a net loss of Rs 146.07 crore in the year ended March 2022 as against net profit of Rs 79.41 crore during the previous year ended March 2021, despite a 35 per cent rise in sales to Rs 124.85 crore.

Kotak Institutional Equities has an add call on CarTrade with a target price of Rs 675. It noted that the company has Rs 10 billion of cash on books as of March 2022 which it plans to utilize for inorganic growth.

PB Fintech

Shares of Policybazaar (PB Fintech) had made a decent debut on Dalal Street. The scrip had listed at a premium of 17.34 per cent at Rs 1,150 on the NSE against the issue price of Rs 980. Currently, the stock is down 55 per cent from a high of Rs 1,470 hit on November 17, 2021.

PolicyBazaar reported a widening of losses to Rs 219.60 crore in the March quarter from Rs 64.38 crore in the year-ago quarter, even as revenues doubled for the quarter to Rs 540.29 crore. Losses were, however, down from Rs 298 crore in the December quarter.

Morgan Stanley has a target of Rs 945 on the stock as it believes that productivity metrics are poised to improve. “Adjusted Ebitda was in-line and the overall losses for the March quarter were lower than estimates. Revenue beat was driven by higher POSP business take rates. The improvement in productivity was due to synergetic combination,” it added.

has a target of Rs 940 on the stock. “The bigger positive is the new strategy of measured cash burn in new business initiatives, broadly pegging it to the interest income of PB (Rs 200 crore annually as per Q4FY22). Apart from growth in core business and increasing share of renewal, offline channels will also aid contribution margins,” it said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

Source link

Recent Posts

Scan to Download
ios&Android APP

Open trading account and start trading!

Join our happy customers