Mutual funds (MFs) lapped up shares of new-age businesses in April at a time when most of these stocks have recovered sharply from their 52-week lows. Nykaa and Zomato featured in the list of top 10 most bought shares by MFs last month, with fund houses' holdings in these two stocks rising by over Rs 1,100 crore, shows a report by Nuvama Alternative & Quantitative Research.
Shares of Zomato had staged some recovery in April after remaining subdued for an extended period. The stock was trading at around Rs 64 at the end of April compared to about Rs 50 at the end of March. Most brokerages have given a 'buy' rating to the stock given the high growth potential of the food-delivery space. The stock has corrected a bit in May owing to rising traction for ONDC but analysts expect the government-backed entity not to pose too big a threat going forward.
"We see ONDC as a potential threat to Zomato, only if it meaningfully scales up acr
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