Twenty four of the 30 new-age tech stocks under Inc42’s watch gained in a range of 0.12% to a little over 26% this week.
While Ola Electric emerged as the biggest gainer, Paytm, Zaggle, CarTrade, Swiggy touched fresh 52-week highs during the week.
Benchmark index Sensex gained 0.86% to end the week at 79,802.79. Nifty50 rose 0.9% to 24,131.10 this week
Following the correction and the volatility in the broader market over the last month or so, the Indian equities market extended last week’s upward movement in the final week of November. In line with this, new-age tech stocks also gained.
Twenty four of the 30 new-age tech stocks under Inc42’s watch gained in a range of 0.12% to a little over 26% this week.
Emerging from a phase of bearish investor sentiment, shares of electric two-wheeler manufacturer Ola Electric gained 26.44% to end the week at INR 87.42.
Last week’s biggest loser Honasa Consumer also ended the week with hefty gains. After plunging over 40% in the previous week, shares of Honasa ended this week 17.37% higher at INR 263.25.
Further, Paytm, zaggle, CarTrade, swiggy and BlackBuck touched fresh 52-week highs during the week. RateGain, Nykaa, TAC Infosec, ideaForge, IndiaMART, among others, ended the week in the green.
Swiggy’s rival Zomato closed its INR 8,500 Cr qualified institutional placement (QIP) issue this week, marking its first fundraising post listing. The company announced the allotment of 33.64 Cr equity shares on November 28. Amid this, its shares ended the week 5.81% higher at INR 279.50. Its market capitalization also zoomed to $29.20 Bn from $27.64 Bn at the end of last week.
On the other hand, shares of five new-age tech stocks ended in the red this week, falling in a range of 0.32% to a little under 6%. NSE Emerge-listed Yudiz was the biggest loser, with its shares falling 5.66% to close the week at INR 72.75.
Online travel aggregator (OTA) Yatra touched a fresh 52-week low of INR 102.40 during the week. The stock ended the week 1.52% lower at INR 103.75. Other losers of the week were Delhivery, Menhood and DroneAcharya.
It is also pertinent to mention that EaseMyTrip’s shares started trading ex-bonus this week.
Meanwhile, benchmark index Sensex gained 0.86% to end the week at 79,802.79. Nifty50 rose 0.9% to 24,131.10 this week.
Commenting on the broader market trends, Vinod Nair, head of research at Geojit Financial Services, observed that the gain in the indices came on the back of expectations of stability in government spending in H2 FY25 and MSCI rebalancing.
“We expect the prospects of H2 earnings to remain positive due to a good monsoon and festival and marriage season, which could ease the impact of earnings downgrades that happened in Q2. “Though the consensus shows status quo, the probability of a rate cut in February is high due to the subdued growth in Q2,” he said.
As per the data released on Friday (November 29), India’s GDP growth slowed down to 5.4% in the second quarter of FY25.
In the short term, Nair believes that economic indicators like service and manufacturing PMI data, auto sales, and US job data will influence investors’ attention and shape the market momentum.
Now, let’s take a deeper look at the performance of the new-age tech stocks this week.
The total market cap of the 30 new-age tech stocks under Inc42’s coverage stood at $92.45 Bn at the end of the week as against $86.47 Bn at the end of the previous week.
Ola Electric Surges On The Back Of New Launches
Amid rising after-sales service complaints, shares of Ola Electric plunged to an all time low of INR 66.60 earlier in the month.
However, things took a turn for the better in the final week of November. Shares of Ola Electric gained 26.44% to end the week at INR 87.42. With this, its market cap also jumped back to $4.54 Bn at the end of the week.
The upward spike came after it launched the Gig and S1 Z range of scootersfocused on the gig economy and price-conscious consumers, on November 26. Ola Gig, Ola Gig+, Ola S1 Z, and Ola S1 Z+ were launched at introductory prices of INR 39,999, INR 49,999, INR 59,999 and INR 64,999, respectively.
Besides, the company also launched a portable battery pack, named Ola PowerPod. The battery pack, which is set for roll out in April 2025, will enable power backup and home solar energy storage.
“At INR 9,999 Ola PowerPod makes EVs more flexible and adaptable across urban and rural India!” Ola Electric CEO and founder Bhavish Aggarwal said in a social media post.
During the week, brokerage firm Citi Bank also initiated its coverage on the company with a ‘Buy’ call and a price target (PT) of INR 90.
The brokerage firm highlighted Ola Electric’s leadership position as the largest E2W player in India, as well as its broad product portfolio, strong focus on R&D, significant vertical integration and large-scale production capabilities.
Citi acknowledged the recent negative service perceptions but said it expects these concerns to ease over the medium term as Ola Electric’s supply chain improves to match volume growth.
Swiggy Soars On The Back Of Brokerage Optimism
Shares of recently listed Swiggy touched an all-time high of INR 516.95 on Thursday. It lost some of the gains to end the week at INR 471.30, up 13.23% from last week. The company’s market cap stood at $12.47 Bn at the end of the week.
During the week, brokerage UBS initiated coverage on Swiggy with a ‘Buy’ rating and a 12-month price target of INR 515.
Reasoning its take, the brokerage expressed confidence in Swiggy’s ability to capitalize on the rapid growth of food delivery and quick commerce markets in the country. It said that there is a significant potential for further growth in these markets.
Prior to this, JM Financial initiated its coverage on Swiggy with a ‘Buy’ rating and a price target of INR 470. However, Motilal Oswal gave Swiggy’s shares a ‘neutral’ rating with a PT of INR 475.
It is imperative to mention that Swiggy will be disclosing its results for the second quarter of FY25 on December 3.
Honasa Regains Unicorn Status Within A Week
After witnessing a sharp decline of about 40% in the previous week, shares of Mamaearth parent Honasa ended the final week of November with gains. Its shares gained 17.37% to end at 263.25. With this, its market cap also surged back to $1.01 Bn.
It is pertinent to mention that the company’s shares hit an upper circuit of INR 251.55 on November 28.
The rally came after a significant bearish sentiment that plagued the stock last week. The stock came under pressure after the beauty and personal care (BPC) major released its Q2 FY25 results after market hours on November 14. It slipped into the red with a consolidated net loss of INR 18.6 Cr as against a profit of INR 29.4 Cr in Q2 FY24.
Revenue from operations also saw a decline of nearly 7% to INR 461.8 Cr from INR 496.1 Cr in the same quarter last year. The company attributed the decline to its ongoing transition from a super-stockist-led distribution model to a direct distributor model under “Project Neev”.
Following the release, the company’s shares plunged by 20% in the first trading session of the week. Amid this, the All India Consumer Product Distributors Federation (AICPDF) accused Honasa of unethical stock dumping practices, alleging that distributors across the country are struggling with “unsold stocks nearing expiry”.
The AICPDF also claimed that Honasa has unsettled credit notes totaling approximately INR 50 crore. Dhairyashil Patil, the national president of AICPDF, warned that the federation may consider a nationwide non-cooperation stance if these issues are not resolved.
However, Honasa rubbished all the allegations.
