New startups listed in the Indian stock market last year are having a bad time for Zomato, Policy Bazaar, Nayaka and Paytm. These stocks have fallen as much as 60 percent since January. Experts are pointing out that their market cap has fallen sharply due to the fall in stocks and this trend is expected to continue.
PolicyBazar (PB Fintech), Nayaka (FSN e-commerce venture) and Paytm (One97 Communications) were listed on the stock exchange in November 2021. Shares of Zomato started trading on July 27 last year. Three of the above heroines, Paytm and Zomato were included in the Nifty Next 50 Index in February this year. But so far their investors have been disappointed.
Paytm’s operating company One97 Communications is in the worst condition after listing. The company’s valuation has fallen by more than 75% since November 2021. Zomato’s market cap also fell by less than half to Rs. 47,625 crore. At the beginning of the year, the company’s market cap was Rs. 1.11 lakh crore. Meanwhile, the policy market and the valuation of Nayaka have also declined by 30-40%.
The biggest reason for the massive decline in the shares of these new age technology companies is that these companies will become profitable in the long run. S Ranganathan, research head, LKP Securities, said that these companies have created a new market with the help of new technology. I understand that it will take another five years for Zomato, Policybazar and Paytm to make a profit. Investors are slowly coming to terms with this and the consequences. According to Ranganath, the story of the heroine is different. The company makes a profit but has a higher valuation.
Paytm, Heroine – Part of Zomato Nifty-50
The National Stock Exchange (NSE) listed Paytm, Nayaka and Zomato in the Nifty Next 50 at the end of February this year. Companies included in the Nifty 50 only fall into the category.