SUMMARY
Seven out of 14 new-age tech stocks under Inc42’s coverage rose in the range of 0.2%-8% this week, with IndiaMart InterMESH emerging as the biggest winner
Delhivery, Tracxn, Nykaa, Nazara, and EaseMyTrip fell in the range of 0.4%-4%. EaseMyTrip was the biggest loser this week
In the broader equity market, Sensex rose 1% to 60,431 this week while Nifty50 gained 1.3% to 17,828
New-age tech stocks delivered a mixed performance this week after two weeks of rally, as the overall Indian equity market also witnessed volatility amid global macroeconomic headwinds.
Seven out of 14 new-age tech stocks under Inc42’s coverage rose in the range of 0.2%-8% this week, with IndiaMart InterMESH emerging as the biggest winner. Zomato, RateGain, MapmyIndia, DroneAcharya, Paytm, and Fino Payments Bank were among the gainers this week.
Meanwhile, Delhivery, Tracxn, Nykaa, Nazara, and EaseMyTrip fell in the range of 0.4%-4%. EaseMyTrip was the biggest loser this week.
At the onset of the Q4 FY23 results season, there is higher cautiousness in the market, particularly for the IT companies, after TCS and Infosys reported weak performance in the quarter.
In the broader equity market, Sensex rose 1% to 60,431 this week while Nifty50 gained 1.3% to 17,828.
“Equity markets globally were lacklustre despite inflation cooling off as sentiments took a hit after FOMC minutes suggested that the US banking crisis is likely to bring a recessionary environment later this year,” said Siddhartha Khemka, head of retail research at Motilal Oswal.
Meanwhile, Shibani Sircar Kurian, senior EVP and head of equity research at Kotak Mahindra Asset Management Company said, “With global macro uncertainties on growth and inflation persisting, it is likely that domestic equity markets remain volatile in the near term even as the medium term outlook remains strong.”
The Indian stock market was closed on April 14 (Friday) due to Ambedkar Jayanti.
Now, let’s further analyse the performance of some of the new-age tech stocks this week.
The 14 new-age tech stocks under Inc42’s coverage ended the week with a total market capitalisation of $26.44 Bn as against $26.66 Bn last week.
Tiger Global Again Sells Delhivery Shares
Shares of Delhivery were on the rise at the beginning of the week. However, the stock fell after Tiger Global offloaded 1.17 Cr shares in the logistics startup on April 11.
Overall, Delhivery shares closed 0.5% lower this week, ending Thursday’s session at INR 325.
Tiger Global’s Internet Fund III sold Delhivery stocks for the fifth time since the startup’s lock-in expired in November last year. This week, the VC firm offloaded a 1.6% stake in the company. Earlier, in March, it offloaded a 0.7% stake, following a 1.7% stake sale in February this year.
As of December 2022, the Internet Fund III held a 4.68% stake in Delhivery.
Amol Athawale, deputy vice president, technical research at Kotak Securities, said that the stock has been consolidating near the 50- and 20-day simple moving average (SMA) for the past few weeks.
“Now the stock is witnessing non-directional activity. For the bulls, INR 340-342 would be the immediate breakout level. If the stock succeeds to trade above that level with good volume activity, then we can expect a fresh uptrend rally till INR 355-INR 360 in the medium term,” he said.
The support for the stock is around INR 315-INR 318, Athawale added.
Worries About Zomato’s Q4 Performance
Shares of Zomato rose 2.3% this week, ending Friday’s session at INR 53.83 on the BSE. The shares made a northbound journey despite concerns about its Q4 FY23 performance.
The foodtech major’s sequential growth in food delivery gross order value (GOV) is expected to remain muted for the third consecutive quarter in Q4, said JM Financial in a research note this week.
Amid concerns over its food delivery vertical’s performance, Zomato’s ecommerce arm Blinkit faced backlash from delivery partners this week. More than half of Blinkit’s 200 dark stores in Delhi-NCR have been shut after the company introduced a new payout structure for its delivery partners earlier this week.
Speaking about the stock, Athawale said that shares of Zomato are now comfortably trading near 50- and 20-day SMA. The stock is also holding a higher bottom formation and looks positive.
The immediate hurdle for the stock is at INR 56-INR 57. Further upside is possible which can lift the stock up to INR 59, he said, adding that the downside support is at around INR 52-INR 51.
EaseMyTrip Biggest Loser
After being on a downward trend since early March, shares of EaseMyTrip started showing some strength from the end of last month. However, the rally paused this week.
Shares of the traveltech startup fell 4.3% this week, declining in three straight sessions, becoming the biggest loser among the new-age tech stocks. The stock ended the week at INR 45.07 on the BSE.
In an analyst meeting, the startup said it expects strong industry tailwinds and market share gains in its air-ticketing business. As per a JM Financial report, the startup also said that it is working on developing newer revenue streams such as medical tourism, travel for education, luxury wedding and events, sports tourism, customised travel packages for corporates, and more, along with expanding partnerships with credit card companies and banks.
However, the brokerage maintained its ‘hold’ rating on EamseMyTrip with a price target of INR 50, which implies an upside of about 11% to the stock’s last close.
Athawale said that the stock is witnessing profit booking at higher levels.
“The medium term trend is in the positive side. Fresh pullback rally possible only after dismissal of INR 47. Above that, it can move up to INR 49-INR 50,” he said.
