Paytm, Zomato: Analysts cautious on new-age stocks on expensive valuations

Stocks of new-age companies have seen a mixed performance thus far in calendar year 2023 (CY23). While those of One97 Communications (parent company of Paytm), PB Fintech and Zomato have surged up to 63 per cent year-to-date (YTD), FSN e-commerce, the parent company of Nykaa, however, has dropped 14 per cent YTD. By comparison, Nifty50 and Nifty 500 indices have advanced 7 per cent and 8.7 per cent, respectively, during the period, ACE Equity data show.

This mixed performance of new-age companies at the bourses, analysts believe, has been in the hope of an improvement in the financial performance in the quarters ahead. That apart, the overall market momentum, especially in the mid-and small-caps during CY23, also contributed.