New-Age Tech Stocks Bleed This Week Amid Broader Market Dip

SUMMARY

Twenty 4 of the 29 new-age tech shares underneath Inc42’s protection fell in a variety of 0.08% to about 17% this week

The businesses listed on the SME platforms have been the worst hit this week throughout the new-age tech shares universe

Within the broader market, Sensex ended the week 2.49% decrease at 77,580.31 and Nifty 50 fell 2.35% to shut at 23,532.70

Weak financials of firms within the second quarter of the fiscal 12 months 2024-25 (FY25) and persevering with FII outflow resulted within the Indian equities market ending within the crimson this week as effectively.

In step with this, shares of new-age tech shares underneath Inc42’s protection additionally declined. Twenty 4 new-age tech shares fell in a variety of 0.08% to about 17% this week. 

The businesses listed on the SME platforms have been the worst hit this week throughout the new-age tech shares universe. Yudiz, which reported a 99.9% decline in its web revenue to INR 5K in H1 FY25, emerged as the most important loser this week. The blockchain and IT growth firm’s shares plummeted 16.56% to finish the week at INR 70.30 on NSE SME. 

The second greatest loser this week was DroneAcharya, which reported a 62.1% decline in its revenue after tax (PAT) to INR 1.50 Cr in H1 FY25 from INR 3.96 Cr within the year-ago interval.

Shares of the BSE SME-listed firm fell 16.48% to finish the week at INR 112.25, recovering barely from a 52-week low of INR 110 it touched earlier within the week. 

Different losers of the week included RateGain, Delhivery, Nykaa, FirstCry, Nazara Applied sciences, all of which reported their Q2 numbers this week – lots of them after the shut of market on the final buying and selling day of the week. 

The markets have been closed on November 15 (Friday) on account of Guru Nanak Jayanti. 

Regardless of the gloomy investor sentiment, shares of 4 new-age tech firms ended within the inexperienced this week. The largest gainer was NSE Emerge-listed Macobs Applied sciences, the mother or father of D2C males’s grooming model Menhood. 

Shares of Macobs went up 10.94% to finish the week at INR 175.90 after touching an all-time excessive of INR 178 on November 12 (Tuesday). On November 14 (Thursday), the corporate reported a 190% year-on-year (YoY) enhance in its PAT to INR 1.84 Cr in H1 FY25.

Fintech SaaS firm Zaggle additionally posted a 167.67% YoY leap in its consolidated web revenue to INR 20.29 Cr in Q2 FY25 on November 13 (Wednesday). Its shares ended the week 2.43% greater at INR 426 on the BSE. 

The opposite two gainers of the week have been Zomato and PB Fintech.

Amid the massacre, the much-anticipated itemizing of foodtech main Swiggy occurred this week. After itemizing at a premium of 6% to eight% to its challenge value, shares of the corporate zoomed about 17% within the first buying and selling session. Nevertheless, the inventory fell within the second buying and selling session to finish the week at INR 429.85 on the BSE. 

Brokerage JM Monetary initiated its protection of Swiggy with a ‘Purchase’ score and a value goal of INR 470. 

In the meantime, within the broader market, Sensex ended the week 2.49% decrease at 77,580.31 and Nifty 50 fell 2.35% to shut at 23,532.70. 

With this, each the benchmark indices have gone down about 5% prior to now month. Observing that the Indian home markets are in a “correction terrain”, Geojit Monetary Providers’ head of analysis Vinod Nair stated that the set off for this has been the weak point in Q2 FY25 outcomes, which has compelled overseas buyers to look away. 

“Consolidation might proceed within the close to time period; nonetheless, the beaten-down worth shares might witness backside fishing as a result of their potential outlook,” he stated. 

Asit C. Mehta Funding Intermediates’ AVP of technical and derivatives analysis Hrishikesh Yedve identified that the market volatility cooled down within the final buying and selling session of the week.

“General, the short-term pattern is down however so long as Nifty holds above 23,500, a pullback rally may very well be potential,” he stated. 

With that stated, let’s take a deeper have a look at the efficiency of the new-age tech shares this week.

Put up the addition of Swiggy, the whole market capitalisation of the 29 new-age tech shares ended the week at $85.6 Bn. Minus Swiggy’s $11.39 Bn market cap, total market cap of the 28 new-age tech shares ended the week at $74.21 down from final week’s $75.03 Bn. 

DroneAcharya’s H1 Revenue Slumps

Buyers turned extraordinarily bearish in direction of DroneAcharya on the again of a poor efficiency within the first half of the fiscal. The corporate’s shares hit a 52-week low of INR 110 on November 13, a day after it reported a big dent in its backside line for the primary half of the 12 months. 

The drone firm reported a 62.1% drop in consolidated PAT to INR 1.50 Cr in H1 FY25, in comparison with INR 3.96 Cr in the identical interval final 12 months.

Income from operations, nonetheless, rose 28.8% to INR 26.90 Cr from INR 20.88 Cr in H1 FY24. Together with different earnings of INR 75.86 Lakh, complete income for H1 FY25 amounted to INR 27.66 Cr.

Whole bills elevated 51.8% to INR 25.23 Cr from INR 16.62 Cr within the earlier 12 months. 

The decline in PAT was in distinction with the corporate’s earlier projections. In September, DroneAcharya stated it was concentrating on a 200% progress in income, EBITDA, and PAT in FY25. The corporate had reported a consolidated PAT of INR 6.2 Cr in FY24.

Later within the week, DroneAcharya stated that it has secured a contract price INR 14.80 Cr from US-based American Blast Programs (ABS).  

MapmyIndia Plunges On Weak Q2 Numbers

Shares of MapmyIndia fell 15.36% to finish the week at INR 1,740.10, after the corporate reported a decline of 8% in its consolidated PAT to INR 30.35 Cr in Q2 FY25 from INR 33.09 Cr within the earlier fiscal 12 months. 

Income from operations rose 14% to INR 103.67 Cr from INR 91.08 Cr in Q2 FY24.

MapmyIndia chairman and managing director Rakesh Verma attributed the decline within the margin to steady funding within the shopper enterprise for future progress. He additionally famous that the corporate’s Mappls app downloads reached 25 Mn on the finish of H1 FY25 as in opposition to 10 Mn on the finish of H1 FY24.

“The general market we serve confronted challenges in Q2 FY25, however we managed to carry out fairly effectively because of our open orders and powerful teamwork,” MapmyIndia COO Sapna Ahuja stated.

MapmyIndia additionally introduced a three way partnership with Hyundai Autoever, an entirely owned subsidiary of Hyundai Motor, in Indonesia. MapmyIndia will make investments $4 Mn for a 40% stake within the new entity, PT Terra Hyperlink Applied sciences, with Hyundai controlling the remaining stake. 

The three way partnership will enable MapmyIndia to broaden into the Indonesian market and map your entire nation. Verma and Hyundai’s Asia Pacific president Jin Ho Kim have been nominated as administrators of the corporate

Distribution Mannequin Adjustments Hit Honasa

Shares of Varun and Ghazal Alagh-led Honasa Customers fell 3.17% to INR 369.75 this week, with its market cap ending at $1.42 Bn.

The corporate additionally reported its Q2 financials on Thursday after market hours. It slipped into the crimson and posted a consolidated web lack of INR 18.6 Cr throughout the quarter in comparison with a revenue of INR 29.4 Cr in Q2 FY24. 

Income from operations additionally declined practically 7% to INR 461.8 Cr from INR 496.1 Cr in the identical quarter final 12 months.

The corporate attributed the loss and income decline to its ongoing transition from a super-stockist-led distribution mannequin to a direct distributor mannequin as a part of its “Venture Neev”.

This shift, geared toward optimising the distribution community, impacted each income and profitability, with Honasa posting a damaging EBITDA margin of 6.6% as in opposition to a optimistic 8.1% in Q2 FY24. 

Cofounder Varun Alagh indicated the necessity to alter the product combine and refine funding methods. The corporate plans to give attention to a narrower vary of classes and strengthen its choices in hero SKUs to drive future progress.