PB Fintech & others rise amid market volatility
The parent firm of Nykaa, FSN E-Commerce Ventures, saw a more than 3% increase in share price to Rs 155.35. Zomato increased 3% to Rs 56.15. PB Fintech, the company that runs PaisaBazaar and PolicyBazaar, increased by 2% to Rs 476.15, while One 97 Communications, the company that owns Paytm, increased by 2% to Rs 583.95.
In Wednesday’s trading, shares of companies including CarTrade Tech, Easy Trip Planners, Nazara Technologies, and Delhivery were all trading higher.
Brokerages have released quarterly predictions for several of the new age companies as the results season has begun, indicating stronger business momentum.
Holiday cheer was brought to covering companies in the December quarter, but the attitude is still largely depressing due to an inflationary macroeconomic environment that is dampening the increase in demand, according to JM Financial’s study.
In the past 12 to 15 months, new age internet companies have taken a severe beating, falling up to 75% from record highs and collectively wiping out more than Rs 2 lakh crore in notional worth from investors’ accounts.
According to a forecast by ICICI Securities, Paytm is expected to record revenue growth of 46% year over year (YoY) to Rs 2,125.70 crore from Rs 1,456.10 crore in the same quarter last year. According to this brokearge, Paytm’s Ebitda loss will drop to Rs 488.10 crore.
While Morgan Stanley has a “equalweight” rating on the company with a target price of Rs 695, JP Morgan has maintained its “overweight” rating on Paytm with a target price of Rs 1,100.
According to JM Financial, Nykaa’s growth in the December quarter will be driven by holiday demand, penetration of new channels, and newer initiatives (eB2B superstore). JM Financial believes that new initiatives like eB2B offer the company a significant opportunity over the next 3-5 years.
According to the analysis by JM Financial, PB Fintech is anticipated to produce rise in insurance premiums of 44% and loan disbursals of 59% YoY. Due to base effects and the ongoing expansion of insurance and credit penetration, it also anticipates that Paisabazaar’s revenue would increase by 71% YoY and Policybazaar’s revenue will increase by 59% YoY.
Online financial goods are an intriguing market, according to Nuvama Wealth, formerly known as Edelweiss Wealth, which has started coverage on PB Fintech with a “Buy” rating and a target price of Rs 550.
CarTrade should experience 9% YoY revenue increase in the third quarter of FY23, with advertising sales driving the company’s 23% adjusted EBITDA margin and an improvement of 145 basis points (bps) quarter over quarter.