PB Fintech, Zomato, Nykaa, One97 Communications (Paytm), and other newer businesses were formerly among the top retail darlings. These stocks were listed in late 2021, and have experienced significant declines during the past 12 months.
Thanks to their at-the-time high valuations, these internet-based companies’ shares have experienced a rapid fall of up to 75% from their record-high levels. However, a lot of brokerage houses have changed their tune and claimed that these stocks might soar by up to 90%.
Everything Related to Paytm, Zomato, Nykaa, and Paisabazaar Stocks!
Citi stated that the online major appears to be highly appealing at the moment and, more importantly, that there are numerous growth drivers in store. The Merchant Payment Volumes for Paytm for the first quarter totalled ₹2.34 lakh crore, an increase of 41% year over year.
According to it, valuations are appealing and take most of the negative risks into account. “Our recommendation is to purchase Paytm and One 97 Communications. With a target price of ₹1,061, Citi suggested a 90% increase over the company’s current market price of about ₹561. We believe Paytm has multiple existing and new levers to create long-term platform stickiness and improve overall profitability in the business,” Citi stated in its analysis.
Zomato’s Gold price has increased repeatedly, and it is currently at ₹299 for 3 months, which is more expensive than the initial price of ₹149 but still less expensive than Swiggy’s comparable package price. According to Kotak Institutional Equities, at ₹299, we estimate that consumer profitability is still below the typical company-level profitability, albeit this could eventually be compensated by increased restaurant take rates and higher package renewal fees for Gold customers.
The food delivery business’ DCF assumes a GMV CAGR of 19% from FY2023 to FY2030. Nevertheless, given the potential for operating leverage in the company, core business EBITDA can grow considerably more quickly. In order to raise its portion of the user wallet, Zomato would maintain some level of innovation in both the Blinkit and Zomato businesses, according to Kotak, who set a fair value objective of ₹82.
The consumption rate in India is declining. The impact on Nykaa will be very minimal, though, given the low penetration rate of cosmetic products and the small ticket size. According to Nomura, the company has already finished major capex on fulfilment centres and now has 37 fulfilment facilities for the BPC division.
PB Fintech has been gradually rising upward with a positive bias. It also saw a strong rebound after bottoming out at about ₹500. According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, a misleading close over 600 levels would increase the bias and foresee additional upward momentum.
Nevertheless, Nuvama Institutional Equities downgraded the company to hold with a target price of ₹550 after its Q3 earnings due to its performance in the December 2022 quarter and its constrained upside potential.
