Shares of several new-age companies including Paytm, Fino Payments and CarTrade fell to their new lows on Friday. On the other hand, shares of other companies in the list including Zomato, Posili Bazaar (PB Fintech) and Nykaa also closed down in the last one year.
Many experts including veteran stock market investor Shankar Sharma are still apprehensive about the business of these new age companies. In January, Shankar Sharma had expressed the expectation of a fall of 80 to 90 percent in the shares of these companies by the end of this year. However, the main reason behind the fall in the market on Friday is being told the tension between Russia and Ukraine in Eastern Europe.
Gautam Duggad, Head of Research, Institutional Equities, Motilal Oswal Financial Services, said his firm does not cover any new age company as one would be brave enough to bet on these stocks.
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He said, “Some of these companies have worked hard for years and have built a very good business. Their revenue has also increased for the last 4-5 years and they have the potential to grow further. However, their main problem is cash in the market. Flow and their profits. Due to the increase in interest rates by the US Federal Reserve Bank, the money in the market will be reduced. In such a situation, people will have to be very bold to invest in these stocks. Also they will have to decide these shares. have come to their lowest level or not.”
Shares of Paytm closed at Rs 833.85, down 1.89 per cent on the NSE on Friday. During the day’s trading, it had fallen to Rs 831.00, which is its lowest level ever. The stock has lost more than 5% in the last 5 days. Investors’ wealth has declined by 46.58 per cent from its listing price so far.
On the other hand, shares of Fino Payments Bank closed at Rs 309.30, down 4.12 per cent on the NSE on Friday. During the day’s trading, the price of this stock had come down to Rs 307, which is now its new low. The stock has lost more than 43 per cent since its listing in November 2021.
CarTrade shares also hit their new low of Rs 583 today. At the close of trading on Friday, Cartrade shares closed at Rs 586, down 4.51 per cent on the NSE. The stock has lost more than 60 per cent since its listing in August 2021.
Shares of Zomato also closed at Rs 85.80, down 3.76 per cent today. So far in the year 2022, the price of this share has declined by about 39.30 percent. On the other hand, shares of Nykaa also closed at Rs 1,397, down 3.51 per cent today. Shares of Nykaa have fallen around 33 per cent since the beginning of 2022.