New-Age Tech Stocks This Week: Zomato, MapmyIndia Fall

Zomato’s Troubles Continue, EaseMyTrip Posts Strong Q1 Results

SUMMARY

From MapmyIndia, Policybazaar, and Paytm to the troubled Zomato, most of the listed startup shares fell between 3% to 15% this week

MapmyIndia shares fell for two straight sessions after the company announced launching its Panoramic Street View in India, which coincided with Google Map’s Street View launch

Shares of EaseMyTrip ended over 5% higher as the startup reported doubling of its profit to INR 33.7 Cr during the June quarter

While the overall Indian equity market ended on a positive note this week, a majority of the new-age tech stocks were under stress, falling significantly on a week-on-week basis.On the other hand, the free-fall of Zomato shares gained momentum this week as the lock-in period for the promoters, employees, founders, among others, for selling shares ended.Benchmark indices NSE Nifty50 and BSE Sensex gained in the last three sessions, ending the week 2.62% and 2.67% higher at 17,158.25 and 57,570.25, respectively.Srishti Jain, research analyst at Monarch Networth Capital, told Inc42 that despite the intensifying competition, MapmyIndia’s fundamental story remains unchanged. Meanwhile, the stock is expected to remain range-bound in the coming days, Mehul Kothari, AVP of technical research at Anand Rathi, said. It will face resistance at INR 1,400 to INR 1,450 levels, while support is seen at INR 1,250, he added.Rahul Dani, research analyst at Monarch Networth Capital, said that given the promising numbers reported by EaseMyTrip, its shares may see a positive reaction on the street next week.In further bad news for the investors, valuation guru Aswath Damodaran cut his price for Zomato shares, assigning a new base case value of INR 35.32 as against INR 41 earlier.Anand Rathi’s Kothari told Inc42 that there are no visible signs of a reversal in Zomato shares on the technical charts.

From MapmyIndia, Policybazaar, and Paytm to much-strained Zomato, shares of most of the listed startups fell between 3% to 15% this week. This was in contrast to the last week when a majority of them had gained.