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

Zomato, for instance, has been the only new-age company which has achieved profitability in the April-June quarter (Q1) of the current financial year (FY24)

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