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
1.Zomato – Target Price ₹315
Blinkit’s rapid expansion to new cities is a strategy to gain first-time users and 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 per cent and maintain BUY with a revised SoTP-based FV of ₹315 ( ₹270 earlier),” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
2.FSN E-Commerce Ventures (Nykaa) – 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. As a percentage of NSV, Kotak Securities belives the fulfilment cost may increase soon as the company attempts to cover many 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 per cent EPS cut for FY2025-27 and a new FV of ₹190. The sharp 34 per cent run-up in stock price in the past three months drives a downgrade in the rating from ADD to SELL,” said Chouhan.
4.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 Valmo’s effect on 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 positive surprises on margin uptick. We increase our margin estimates by 60-100 bps (versus ~100 bps 1Q beat); FV increases to ₹560 from ₹545,” said Kotak Securities. The brokerage gave a BUY rating on the logistics stock.
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
