New Age Business Stocks: If we look at the trend of IPO market in the last 6 months, then many new age business ie companies with new age business have been listed in the market. These include stocks like Paytm, CarTrade Tech, Nykaa, Star Health, AGS Transact, Fino Payments and Zomato. But most of these stocks are under pressure since their listing and some have even come below the issue price. The trend of making record lows is being seen in these stocks every day. When investors like new age businesses, then what is the reason why their stocks are continuously declining. Experts say that the big reason behind this is their high valuation. At the same time, there is no clarity about the business outlook and profits of some companies.
High valuation is a big reason for pressure
Santosh Meena, Research Head, Swastika Investmart, says that recently, most of the companies’ shares have been listed which are related to the new age business. Which includes stocks like Paytm, CarTrade Tech, Nykaa, Star Health, AGS Transact, Fino Payments and Zomato. The shares of most companies are close to their 52-week low. The biggest reason for the decline in these stocks is that their valuation was higher than that of Pierce. At the same time, the current market sentiment has also affected the stock.
These stocks can become wealth creators
Santosh Meena says that at present, when we talk about these stocks, Zomato and Star health are looking attractive from the current level. These stocks have the potential to create wealth over the long term for the investors. At the same time, Nykaa is also a profitable company in them and the outlook is looking better going forward. As far as Paytm is concerned, there is still no clarity regarding its business outlook and profits. In such a situation, the stock of Paytm should be avoided now.
Brokerage is also positive on these stocks
Brokerage house JM Financial has also set a target of Rs 155, advising investment in Zomato’s stock. On the other hand, brokerage house Emkay Global has set a target of Rs 1040, advising investment in insurance company Star Health. The brokerage says that due to the increase in claims due to Kovid 19, the company’s profits were affected. But now the outlook of the company is looking better.
On the other hand, brokerage house Goldman Sachs has given a target of Rs 2420, advising to buy in ecommerce beauty company Nykaa. Whereas Morgan Stanley has given an overweight rating on the stock and has given a target of Rs 2040. The brokerage says that the margins of the company are predictable and the margin profile is expected to improve further.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews. Markets are risky, so take expert opinion before investing.)