New Age Tech Stocks at 52-Week Lows. Here's What Lies Ahead

The continuous volatility successful Indian banal markets has caused new-age exertion stocks to tumble.

A clump of these new-age exertion firms person mislaid astir Rs 2.5 trillion (approximately US$20 billion) successful marketplace worth since going public.

Last week, new-age tech firms took different deed arsenic the  stock marketplace plummeted owed to an summation successful Covid-19 cases.

These companies witnessed a crisp diminution successful their stock prices bringing them adjacent to their yearly lows. 

Here are 5 stocks nearing their 52-week lows.

#1 CarTrade Tech

Leading the database is CarTrade Technologies.

CarTrade Tech is simply a multi-channel car level with a beingness crossed conveyance types and value-added services.

Shares of the institution deed their 52-week past week aft the wide banal marketplace besides fell connected a spike successful Covid-19 infections.

The banal has continued its downward momentum since October 2022 arsenic the institution missed the gross estimation for the September 2022 quarter.

For the quarter, the company's gross came successful higher by 13.3% YoY astatine Rs 878.9 m. However, this was 3.7% little than analysts' expectation.

Due to the summation successful revenue, the company's nett net came successful higher by 109.1% to Rs 34.4 m.  

This emergence was connected the backmost of the highest-ever postulation for the 4th of 37 m mean monthly unsocial visitors.

For the coming quarter, the institution is focused connected delivering amended worth to customers, which would assistance the institution to differentiate its merchandise from its competitor.

#2 Nykaa

Second connected the database is Nykaa.

Shares of the institution besides deed their 52-week debased tracking the market. The banal has been nether relentless selling unit ever since lock-in play expired for pre-IPO investors and the bonus issue was announced.

Several money houses and investors person offloaded their involvement successful the institution since 10 November 2022, dragging the stock.

The institution is engaged successful the concern of delighting customers (mainly women) oregon pampering women. It's an e-commerce level dealing exclusively with quality and idiosyncratic attraction products.

For the September 2022 quarter, Nykaa reported a 39% YoY summation successful gross astatine Rs 12.3 bn, portion nett net jumped 344% YoY to Rs 52 m.

This was connected the backmost of expanding gross merchandise worth and expanding request for premium beauty, idiosyncratic care, and wellness segment.

For the coming quarter, the institution is focused connected accelerating investments successful caller store rollouts arsenic good arsenic store upgradation.

#3 CE Info Systems

Third connected the database is CE Info-Systems.

Shares of the institution person been trading debased aft it announced launching its Panoramic Street View and 3D metaverse maps services successful India, which coincides with google map's thoroughfare presumption launch.

However, analysts judge this has triggered a contention towards capturing the Indian marketplace share. 

CE Info Systems, besides known arsenic MapmyIndia, operates arsenic a information and exertion products and platforms company. It offers integer maps, geospatial software, and location-based exertion solutions.

The shares felt further vigor aft the institution nett momentum slowed down contempt a 34.6% YoY summation successful its operating gross to Rs 763.1 m.

The institution for the September 2022 4th reported a marginal diminution successful nett net to Rs 253.7 m from Rs 254 m successful the aforesaid 4th a twelvemonth ago.

For the fiscal twelvemonth 2023, it is looking guardant to gathering connected to precocious released Real View 360-degree and Metaverse 3D maps products, arsenic good arsenic a caller scope of developer APIs.

#4 Tracxn Technologies

Fourth connected the database is Tracxn Technologies.

The shares of the institution deed a debased arsenic the wide banal marketplace fell. The emergence successful Covid-19 cases has dragged astir of the tech stocks down.

Tracxn is among the world's apical 5 backstage marketplace information providers.

It offers services specified arsenic workflow software, Excel plug-ins, deal-flow tools, personalised dashboards, and portfolio trackers.

For the September 2022 quarter, it registered a gross maturation of 28% YoY to Rs 191.1 m. It reported a nett net of Rs 15.4 m arsenic against a nonaccomplishment of Rs 48.3 m a twelvemonth ago.

This was the archetypal quarterly effect published by the startup aft its banal marketplace debut.

For the coming quarter, it is focussing connected prime assurance and addressing information and quality gaps.

#5 Zomato

Last connected the database is Zomato.

Shares of the institution deed a caller debased past week connected the backmost of expanding contention successful the sector.

However, the banal has been nether unit since January 2022 owed to concerns astir profitability, acquisition, and the lock-in play expiry making it 1 of the biggest wealthiness destroyers of 2022.

The institution offers a level that connects customers, edifice partners, and transportation partners to hunt and observe restaurants and bid nutrient delivery. It serves customers worldwide.

Zomato, for the September 2022, reported a 62.2% YoY summation successful gross to Rs 16.6 bn. The nett nonaccomplishment for the September 4th narrowed to Rs 2.5 bn from Rs 4.3 bn a twelvemonth agone connected the backmost of maturation crossed concern verticals.

The institution expects the adjusted operating nonaccomplishment to travel down further and yet get to interruption adjacent successful the adjacent 2 - 4 quarters.

For the fiscal twelvemonth 2023, the institution is focusing connected expanding its marketplace share.

To conclude

After a dismal 2022 that saw their banal prices crash, investors person remained wary of new-age tech companies. This is due to the fact that these companies are not yet profitable.

 The longer it takes for specified companies to interruption even, the higher the chances of competitors entering either successful nonstop oregon indirect space. 

That is wherefore not conscionable retail investors but adjacent marquee investors who had invested successful these companies done an anchor publication are besides selling their shares station the expiry of the IPO lock-in period. 

But adjacent aft this correction, immoderate stocks are inactive trading astatine higher valuations, making it a high-risk investment. 

Thus betting on beaten-down tech stocks is highly risky. You whitethorn not marque wealthiness arsenic anticipated.

This makes it suitable for precise high-risk investors who person agelong concern horizons.

However, to prime the close stocks, you should see the quantitative and qualitative investigation successful conjunction with elaborate research.

If you program to put successful specified stocks, measure the company's fundamentals and allocate wisely to fundamentally beardown stocks.  

Also, support successful caput the wide factors impacting the institution and industry. 

Disclaimer: This nonfiction is for accusation purposes only. It is not a banal proposal and should not beryllium treated arsenic such.

This nonfiction is syndicated from Equitymaster.com

(Except for the headline, this communicative has not been edited by NDTV unit and is published from a syndicated feed.)