New age business stocks in India: With India’s new-age business stocks such as Zomato, Nykaa, PB Fintech, Paytm, Cartrade and Fino Payments Bank taking a beating on Monday, all of them were at their highest post-listing. reached the lower levels. Stocks such as Paytm and Cartrade fell half their issue price, while PB Tech and Fino reached their issue price.
The impact of macro factors is visible
Shares of Zomato fell to 52-week low under heavy selling pressure, which saw weakness for the fifth consecutive day due to macro factors such as selling in tech companies globally. The food aggregator stock has lost 42 per cent for the first time from its 52-week high (November 21). It was listed strongly on BSE and NSE in July, 2021.
too early to judge lower levels
According to JP Morgan, the interest rates have not settled yet, so it is too early to guess the lower levels in Zomato. JP Morgan said, “According to our estimates, reverse discounted cash flow (DCF) indicates that the stock is at 12.2 per cent WACC (compared to 10.7 per cent at our previous SOTP). Its future cash flow comes from the backend, due to which Zomato’s sensitivity to WACC assumptions (based on interest rates) is high.” JP Morgan has given an overweight rating to the stock of Zomato with a target price of Rs 120.
Stock in news – On the basis of news, these shares will earn huge money, do not miss them at all
If interest rates rise, pressure will increase
The brokerage said the DCF at the current risk free rate and beta (Bloomberg) points to Rs 84, down 8 per cent. JP Morgan said, “If interest rates continue to rise, Zomato may see more downside than an uptrend. Even though Zomato showed an early correction compared to its rivals, the stock is trading at a higher premium to its global peers and remains 18 per cent above its IPO pricing.
Union Budget 2022: Will Nirmala Sitamaran’s budget be a booster dose for taxpayers?
What did the founder of Zomato say?
Zomato Founder and Chief Executive Deepinder Goyal wrote in an email to his employees, “I have been waiting for a weak market for a long time. This is what happens when funding runs out for everyone and the companies with the most solid teams and execution come out on top.” “Let’s work, create value, cut costs and don’t look at the stock price as usual,” he said.
.