The continual volatility in Indian stock markets has triggered new-age know-how shares to tumble.
A bunch of those new-age know-how corporations have misplaced about Rs 2.5 trillion (roughly US$20 billion) in market worth since going public.
Final week, new-age tech corporations took one other hit because the stock market plummeted on account of a rise in Covid-19 instances.
These corporations witnessed a pointy decline of their share costs bringing them near their yearly lows.
Listed below are 5 shares nearing their 52-week lows.
#1 CarTrade Tech
Main the record is CarTrade Applied sciences.
CarTrade Tech is a multi-channel auto platform with a presence throughout car varieties and value-added companies.
Shares of the corporate hit their 52-week final week after the general inventory market additionally fell on a spike in Covid-19 infections.
The inventory has continued its downward momentum since October 2022 as the corporate missed the income estimate for the September 2022 quarter.
For the quarter, the corporate’s income got here in increased by 13.3% YoY at Rs 878.9 m. Nevertheless, this was 3.7% decrease than analysts’ expectation.
As a result of improve in income, the corporate’s web revenue got here in increased by 109.1% to Rs 34.4 m.
This rise was on the again of the highest-ever visitors for the quarter of 37 m common month-to-month distinctive guests.
For the approaching quarter, the corporate is targeted on delivering higher worth to prospects, which might assist the corporate to distinguish its product from its competitor.
Second on the record is Nykaa.
Shares of the corporate additionally hit their 52-week low monitoring the market. The inventory has been below relentless promoting strain ever since lock-in interval expired for pre-IPO traders and the bonus issue was introduced.
A number of fund homes and traders have offloaded their stake within the firm since 10 November 2022, dragging the inventory.
The corporate is engaged within the enterprise of delighting prospects (primarily ladies) or pampering ladies. It is an e-commerce platform dealing solely with magnificence and private care merchandise.
For the September 2022 quarter, Nykaa reported a 39% YoY improve in income at Rs 12.3 bn, whereas web revenue jumped 344% YoY to Rs 52 m.
This was on the again of accelerating gross merchandise worth and growing demand for premium magnificence, private care, and wellness phase.
For the approaching quarter, the corporate is targeted on accelerating investments in new retailer rollouts in addition to retailer upgradation.
#3 CE Data Techniques
Third on the record is CE Data-Techniques.
Shares of the corporate have been buying and selling low after it introduced launching its Panoramic Road View and 3D metaverse maps companies in India, which coincides with google map’s road view launch.
Nevertheless, analysts imagine this has triggered a race in direction of capturing the Indian market share.
CE Data Techniques, also referred to as MapmyIndia, operates as a knowledge and know-how merchandise and platforms firm. It presents digital maps, geospatial software program, and location-based know-how options.
The shares felt additional warmth after the corporate revenue momentum slowed down regardless of a 34.6% YoY improve in its working income to Rs 763.1 m.
The corporate for the September 2022 quarter reported a marginal decline in web revenue to Rs 253.7 m from Rs 254 m in the identical quarter a yr in the past.
For the monetary yr 2023, it’s wanting ahead to constructing on to just lately launched Actual View 360-degree and Metaverse 3D maps merchandise, in addition to a brand new vary of developer APIs.
#4 Tracxn Applied sciences
Fourth on the record is Tracxn Applied sciences.
The shares of the corporate hit a low as the general inventory market fell. The rise in Covid-19 instances has dragged many of the tech shares down.
Tracxn is among the many world’s prime 5 non-public market knowledge suppliers.
It presents companies resembling workflow software program, Excel plug-ins, deal-flow instruments, personalised dashboards, and portfolio trackers.
For the September 2022 quarter, it registered a income development of 28% YoY to Rs 191.1 m. It reported a web revenue of Rs 15.4 m as in opposition to a lack of Rs 48.3 m a yr in the past.
This was the primary quarterly consequence revealed by the startup after its inventory market debut.
For the approaching quarter, it’s focussing on high quality assurance and addressing knowledge and intelligence gaps.
Final on the record is Zomato.
Shares of the corporate hit a brand new low final week on the again of accelerating competitors within the sector.
Nevertheless, the inventory has been below strain since January 2022 on account of issues about profitability, acquisition, and the lock-in interval expiry making it one of many largest wealth destroyers of 2022.
The corporate presents a platform that connects prospects, restaurant companions, and supply companions to go looking and uncover eating places and order meals supply. It serves prospects worldwide.
Zomato, for the September 2022, reported a 62.2% YoY improve in income to Rs 16.6 bn. The online loss for the September quarter narrowed to Rs 2.5 bn from Rs 4.3 bn a yr in the past on the again of development throughout enterprise verticals.
The corporate expects the adjusted working loss to come back down additional and ultimately get to interrupt even within the subsequent 2 – 4 quarters.
For the monetary yr 2023, the corporate is specializing in growing its market share.
After a dismal 2022 that noticed their inventory costs crash, traders have remained cautious of new-age tech corporations. It’s because these corporations will not be but worthwhile.
The longer it takes for such corporations to interrupt even, the upper the possibilities of rivals getting into both in direct or oblique house.
That’s the reason not simply retail traders however even marquee traders who had invested in these corporations by way of an anchor guide are additionally promoting their shares put up the expiry of the IPO lock-in interval.
However even after this correction, some shares are nonetheless buying and selling at increased valuations, making it a high-risk funding.
Thus betting on beaten-down tech shares is extraordinarily dangerous. You might not make wealth as anticipated.
This makes it appropriate for very high-risk traders who’ve lengthy funding horizons.
Nevertheless, to pick the best shares, it is best to contemplate the quantitative and qualitative evaluation along with detailed analysis.
In the event you plan to spend money on such shares, assess the firm’s fundamentals and allocate correctly to fundamentally strong stocks.
Additionally, have in mind the general elements impacting the corporate and trade.
Disclaimer: This text is for data functions solely. It’s not a inventory advice and shouldn’t be handled as such.
This text is syndicated from Equitymaster.com
(Apart from the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)
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