Why did PB Fintech, Nykaa, Delhivery, other new-age tech stocks cheer Zomato profit, Paytm’s smaller loss?

financialexpress.com:

As Zomato reported its first ever profit and Paytm’s net losses narrowed, the market’s cheer spread to the other new-age tech stocks. Nykaa, Delhivery and PB Fintech jumped on the positive sentiment surrounding the e-commerce companies as a result of the rub-off effect from Zomato’s Rs 2 crore profit. Analysts suggested that the shift to profitability while maintaining growth has rekindled investor interest in the scrips. 

The recent funding winter ensured that the competitive intensity in the respective industries remained at bay. This benefitted the new-age IT stocks as they used the breather to improve performance and get their house in order. The increased interest from institutions also points to the fact that these companies are on an uphill in terms of business and financial performance, said Manish Chowdhury, Head of Research, StoxBox. 

As losses narrow – Paytm reported a loss of Rs 357 crore this quarter compared to a loss of Rs 6,444 crore in the corresponding quarter in the previous fiscal – and business performance improves, these companies have caught the attention of investors once again. Despite most yet to report profitability, Raj Vyas, VP of Research, Teji Mandi, believed that “the decent growth in other financial metrics provides a healthy outlook”.

Despite being listed at a higher valuation, the correction in the share prices over the past year gave investors an ample opportunity to enter these shares as companies began to focus on earnings growth, said Raj Vyas. He added that the new age companies have just begun their trajectory on the profitability front, strong macro and uptick in discretionary demand, rapid adoption of digital commerce and better than expected trends in average order value which