New-age tech stocks such as Delhivery, Ola Electric Mobility, and Brainbees Solutions, among others, witnessed rapid changes in their respective stock prices in the last five days when domestic equity benchmarks Sensex and Nifty 50 were in a consolidation phase amid global cues. This week, most new-age tech stocks registered losses and settled in red, while only a few outperformed the frontline benchmarks over robust buying interest.
Among the biggest trend makers, Bhavish Aggarwal-led electric two-wheeler maker Ola Electric Mobility snapped its earlier winning streak and emerged as the biggest loser in the pack. On the other hand, car dealer CarTrade Tech logged the biggest weekly gain, rising nearly 14 per cent in the last five days.
Last week, shares of Ola Electric Mobility crashed 12.17 per cent in the last five days, the most among the top new-age tech stocks pack, followed by Brainbees Solutions, which runs FirstCry.com, which dropped 11.28 per cent.
CarTrade Tech was the biggest weekly gainer, leading the new-age tech pack with a stellar rise of 13.75 per cent, followed by One97 Communications, operator of the fintech major Paytm, which rose 11.39 per cent last week.
Notably, CarTrade Tech commands the smallest market cap at ₹5,138.92 crore when compared to the top 10 new-age stocks, including Nykaa, Zomato, Paytm, Honasa Consumer, PB Fintech, and others. Yet, the online automotive firm dominated D-Street as the biggest weekly gainer in the group last week.
The weak September earnings report weighed shares of Ola Electric Mobility. The electric vehicle major posted a consolidated net loss of ₹495 crore for the September 2024 quarter (Q2 FY25) on Friday, November 8. The loss narrowed from ₹524 crore a year earlier but widened to over ₹347 crore in the June 2024 quarter.
The firm’s consolidated revenue from operations stood at ₹1,214 crore in Q2 FY25, up 39 per cent, compared with ₹873 crore in the year-ago period. During the quarter, the EV maker delivered 98,619 units, up 73.6 per cent from 56,813 units in the same period last year. During the quarter, the company ramped up deliveries of its mass-market scooter portfolio (S1 X portfolio), which helped accelerate growth.
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According to most D-Street experts, new-age tech companies offer stronger long-term potential for investors than short-term buying opportunities due to their fresh business models, which are tech-driven and disruptive in nature. The companies are better positioned to exploit modern innovations in artificial intelligence (AI) and digital-first engagement.
‘’Investor sentiment towards these stocks has improved as valuations are now more attractive, and new-age companies have shifted their focus towards cash flow and profitability rather than merely chasing revenue growth. Many of these companies reported strong earnings in the June quarter,'' said Santosh Meena, Head of Research at Swastika Investmart Ltd.
However, he warns investors “should be selective, as not all will be able to sustain consistent performance”. Volatility is likely due to uncertainties in global markets in the near term. Still, any correction driven by global factors could present good buying opportunities in some of these stocks.
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New-age tech companies focus on innovative and high-growth areas. They often leverage modern technologies like artificial intelligence, machine learning, the Internet of Things (IoT), and blockchain to create unique products and services. The companies are characterized by sudden growth, high market valuations, and significant potential for disrupting traditional industries.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
