Bloodbath on D-Street: Nykaa, Paytm, Zomato, PB Fintech shares melt amid brutal sell-off

Shares of Nykaa (listed as FSN E-Commerce Ventures Limited) crashed 8 per cent to hit an all-time low of Rs 1,218.8 on BSE amid brutal market sell-off. The stock has tanked over 53 per cent from its all-time high. The market cap of the firm fell below Rs 62,000 crore on BSE.
 
Likewise, Paytm stock tanked over 3 per cent to hit an all-time low of Rs 782.30. Shares of fintech major are trading 60 per cent below its all-time high of Rs 1,961.05. The market cap of the firm slipped to Rs 51,706 crore.
 
Shares of Zomato have more than halved from its all-time high of Rs 169.10. The stock plunged 6 per cent to hit an intraday low of Rs 77 on BSE. Similarly, the share price of PB Fintech Limited also slipped 7 per cent to hit an all-time low of Rs 737 against the previous close of Rs 726.70.

Ashis Sarangi, SEBI Registered Investment Advisor at Pickright Technologies said, "The fundamental reason for the sharp drop in share prices is that the majority of new age companies that are listed on the market are because of huge losses .

"The goal of these businesses is to make money in the future, not in the short term. We also believe that understanding the business model of new-age enterprises requires time for investors. If you look at stocks like Twitter and LinkedIn, they both corrected after being listed in the United States and came in under the listing price," he said.

"At the current values, only investors with a high-risk appetite can dedicate a portion of their portfolio (2 percent – 4 percent) to these companies as there are many alternative stock ideas available now on a better risk-reward basis," he added.

Despite the ongoing scenario, the brokerage house ICICI Securities is bullish on Paytm and has a target price of Rs 1,352 per share.  "On our target value of Rs 1,352 per share, Paytm is being valued at around 9.5x operating revenue largely at a slight premium to global fintech with comprehensive offering, in-line with BNPL players and at a discount to the global card network entities,” it said.
 
“Also, it is to be noted that Paytm revenue is likely to grow at more than 35% CAGR over FY22-FY24E and more than 25 per cent over FY24-26E which is well above the industry average. Our valuations translate to 0.3x price/revenue growth ratio," the brokerage house added.
 
"We believe that a business like Zomato, which is a long-term play on the fast-growing out-of-home food consumption market, should be considered for its long-term value creation by long-term investors. With its clear market leadership, strong balance sheet and focus on profitability we believe that it will reward long-term investors handsomely," Abhay Agarwal, Founder, and Fund Manager, Piper Serica told BusinessToday.In.
 
Zomato made a bumper debut on bourses with the unicorn hitting the Rs 1-lakh crore market capitalisation mark. The stock opened at Rs 116, 52.63 per cent higher on NSE against the issue price of Rs 76. The listing price on the Bombay Stock Exchange was at Rs 115, up 51.32 per cent.
 
Likewise, the shares of Nykaa listed at a premium of 79 per cent to the issue price, marking a strong listing for the online beauty retailer. The company made its market debut at Rs 2,001 per share on the BSE against the IPO issue price of Rs 1,125.
 
Shares of Policybazaar had made a decent debut on Dalal Street. The scrip had listed at a premium of 17.34 per cent at Rs 1,150 on the NSE against the issue price of Rs 980.
 
However, Paytm initiated its journey as a public company with a 27 per cent fall over its IPO (initial public offering) price on November 18. The scrip listed at a discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150 per share.