Internet-based, new-age stocks such as PolicyBazaar, One97 (Paytm), Zomato, and Swiggy are soaring, riding on a strong rally and capturing the spotlight in the stock market. While investors are capitalising on the buzz and momentum, it raises a vital question: should one focus solely on the growth and excitement, or delve into the fundamentals and valuations before making investment decisions? Shibani Sircar, Senior Executive Vice President, Fund Manager, and Head of Equity Research at Kotak Mahindra AMC, shares her expert perspective on navigating this fast-evolving sector. She highlights the importance of evaluating new-age companies through a structured approach. Investors should consider the addressable market and the company’s growth potential, the business's positioning within its segment, including advantages and barriers to entry, the path to profitability by analysing key financial indicators like EBITDA and PAT, and the company's capital allocation policies, particularly fairness to minority shareholders. Shibani Sircar underscores that these factors can provide a robust framework for making informed investment decisions in this dynamic sector.