High risk investor? Allocate a small portion in new age stocks through a basket approach: Gurmeet Chadha

economictimes.indiatimes.com:

Gurmeet Chadha, Co-founder & CEO, Complete Circle Consultants, says: “We like PB Infotech. It is a marketplace which has the most asset-light model amongst these new-age companies. Their lending marketplace which is PaisaBazaar.com seems to be doing well.

A few quarters from now, hopefully they should be EBITDA positive. Jio Financial Services, Poonawalla, Bajaj Finance are as new-age as some of these names. So have a wider perspective and if you are a high risk investor, allocate a small portion through a basket approach.”Last week, Zomato reported profit. Now in the unlisted space, Meesho, an Indian startup, is also reporting profit for the first time. We have seen a runup coming in Paytm today because of the news flow coming in. In the last six months, a decent up move has started coming in terms of the stock move as well. What is your view on these new age tech names?Two things have helped.

One, for some of these companies including Zomato, Paytm, PB Fintech, the glide path to profitability guidance has been more or less met as per the market expectation. In fact, Zomato reported a profit two quarters ahead of the guidance. In Paytm also, the payment business is doing pretty well.

They added 11 lakh plus merchants on the subscription services. The users on the app are up 22-23%. Also, on the credit side, they continue to do well.

They have this model called FLDG which is a first loss default guarantee where you co-pay to the main lender which is the bank, NBFC. The focus is on lending, balance sheet risk has reduced a little bit and even the commerce and cloud business seems to be doing okay. If some of these companies can demonstrate profitability, suddenly they will be asked to trade on PE earning multiple which