Beaten-down new age companies rebound
stocks rebound over the past three months after the fastest pace of increases in US funding costs in nearly half a century caused a valuation implosion for most such highgrowth companies last year. The ET E-Commerce index, which plunged 53% in 2022, has recovered 25% in the past three months.
That compares with an 11% gain in the Nifty 50 index. The tech-heavy Nasdaq has rallied 15% in this period, while the NYSE FANG+ surged 26%.
The ET Ecommerce NonProfi table index, comprising stocks that are yet to make money, gained 30% in three months and outperformed the ‘Profi table’ index which climbed just about 16%.Cartrade Tech, PB Fintech, Delhivery, Zomato, and Paytm are part of the ET Non-Profi table index. Zomato rallied 46% in the past three months, leading the list of advancing e-commerce stocks.
Most analysts reiterated bullish calls and raised price targets after the food aggregator saw its consolidated loss further narrow. Paytm rose 32% after analysts said customer growth, retention, and cross-selling should drive performance.
Just Dial gained 24% and CarTrade Tech 22%.Nykaa was an underperformer this year with 5% negative returns. Analysts are concerned about its ability to expand its fashion segment profi tably.
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