SUMMARY
Shares of Nykaa closed 3.19% lower at INR 129 on the BSE on Wednesday
Shares of Nykaa have plummeted nearly 17% from its close at INR 155.10 on January 11, wiping off crores in investor wealth
Meanwhile, Paytm rose 0.9% to INR 531.40 on Wednesday, while Zomato also closed 1.69% higher
Continuing their downward spiral, shares of beauty ecommerce platform Nykaa fell to a record low of INR 123.30 during intraday trading on the BSE on Wednesday (January 18).
Shares of FSN Ecommerce, the parent company of Nykaa, fell for the fifth consecutive day even as many new-age tech stocks ended in the green zone. The stock closed 3.19% lower at INR 129 on the BSE today.
Shares of Nykaa have plummeted nearly 17% from its close at INR 155.10 on January 11, wiping off crores in investor wealth.
According to Bloomberg data, the total traded volume of Nykaa shares during the five trading sessions stood at 7.8 times its 30-day average.
At the end of day’s trading, Nykaa’s market capitalisation stood at INR 36,756.90 Cr. Market experts have largely attributed the slump in Nykaa shares to the sell off by investors.
Meanwhile, despite the recent fall, many analysts have a ‘buy’ rating on the stock. In a recent report, brokerage HSBC put its weight behind Nykaa, noting that the startup’s valuation is now even more ‘appealing’ and under-appreciates the structural growth opportunity in the beauty and personal care space.
New-Age Tech Stocks Recover
Meanwhile, shares of other new-age tech startups like foodtech major Zomato, fintech players Paytm and PolicyBazaar rose on Wednesday.
Zomato shares ended 1.69% at INR 51 on the BSE on Wednesday, after shedding 10% in six consecutive trading sessions. On similar lines, Policybazaar also saw some positive gains on Wednesday after a two day slump. PolicyBazaar shares rose 0.91% to close at INR 445.65 on the BSE.
After falling for two consecutive trading sessions, shares of Paytm also rose. The stock ended 0.9% higher at INR 531.40 on the BSE.
Earlier this week, brokerage Goldman Sachs said that it expects Paytm to achieve adjusted EBITDA profitability in the fourth quarter (Q4) of the financial year 2022-23 (FY23), two quarters ahead of the fintech company’s estimates. It cited the Indian government’s approval of UPI reimbursement for FY23 for the change in its estimate about Paytm achieving operational profitability.
Goldman Sachs also increased its price target on the startup to INR 1,120 from 1,100 earlier.
