New-age stocks bleed amid brutal sell-off! Paytm, PB Fintech hit all-time low

Shares of new-age Internet companies including Zomato, Paytm, Nykaa and PB Fintech were under tremendous selling pressure amid the brutal sell-off on Dalal Street.
 
Ashis Sarangi, SEBI Registered Investment Advisor at Pickright Technologies said, "The fundamental reason for the sharp drop in share prices is that the majority of new age companies that are listed on the market are because of huge losses."
 
"The goal of these businesses is to make money in the future, not in the short term. We also believe that understanding the business model of new-age enterprises requires time for investors. If you look at stocks like Twitter and LinkedIn, they both corrected after being listed in the United States and came in under the listing price," he said.
 
"At the current values, only investors with a high-risk appetite can dedicate a portion of their portfolio (2 per cent – 4 per cent) to these companies as there are many alternative stock ideas available now on a better risk-reward basis," he added.
 
Shares of fintech major Paytm crashed 5 per cent to hit an all-time low of Rs 780 on BSE. The stock is now trading 60 per cent below its all-time high of Rs 1,961.05. The market cap of the firm slipped to Rs 50,798 crore.
 
Paytm initiated its journey as a public company with a 27 per cent fall over its IPO (initial public offering) price on November 18. The scrip listed at a discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150 per share.
 
According to a recent report by ICICI Securities, Paytm revenue is likely to grow at more than 35 per cent CAGR over FY22-FY24E and more than 25 per cent over FY24-26E which is well above the industry average. The brokerage house is bullish on Paytm and has a target price of Rs 1,352 per share.
 
Meanwhile, the share price of Policybazaar (listed as PB Fintech Limited) plunged 9 per cent to hit an all-time low of Rs 618.05 against the previous close of Rs 676.80. The market cap of the firm slipped below Rs 30,000 crore.
 
Shares of Policybazaar had made a decent debut on Dalal Street. The scrip had listed at a premium of 17.34 per cent at Rs 1,150 on the NSE against the issue price of Rs 980.
 
Zomato stock, which made a bumper debut on bourses, has more than halved from its all-time high of Rs 169.10. The stock plunged 7 per cent to hit an intraday low of Rs 78 on BSE. Similarly, shares of Nykaa (listed as FSN E-Commerce Ventures Limited) also declined 6 per cent to hit an intraday low of Rs 1,284.75 on BSE. Market cap of the firm fell to Rs 61,658 crore.
 
Nykaa listed at a premium of 79 per cent to the issue price, marking a strong listing for the online beauty retailer. The company made its market debut at Rs 2,001 per share on the BSE against the IPO issue price of Rs 1,125.
 
"We believe that a business like Zomato, which is a long-term play on the fast-growing out-of-home food consumption market, should be considered for its long-term value creation by long-term investors. With its clear market leadership, strong balance sheet and focus on profitability we believe that it will reward long-term investors handsomely," Abhay Agarwal, Founder, and Fund Manager, Piper Serica told BusinessToday.In.