New Delhi. The decline in the shares of Zomato and Paytm continues. The condition of Star Health’s stock is also not good. Similarly, the stock of Nykaa is also trading below its 52-week high. The shares of these companies have gone well below their issue price.
Paytm’s stock has gone down about 58 percent from its issue price. Zomato share price is also trading below its issue price of 76. Paytm Share Price has gone to record low on Tuesday. The stock of Star Health has also gone down about 16 per cent in a month.
The IPO of these companies got tremendous support from the investors. But, after the listing, the shares of these companies did not show the strength that was anticipated. According to a report by Live Mint, market analysts say that whether it is Zomato or Paytm, their valuations have been very high and irrational. That’s why the shares of these companies are falling upside down.
Analysts say that the equity market is currently under pressure at the global level. Investors are withdrawing money from such new age companies which are continuously giving losses. This is happening everywhere. These are the companies that got a lot of valuations due to the booming of the market.
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Zomato can give profits
Santosh Meena, Research Head, Swastika Investmart Ltd, says that valuations of these companies with new age business models were very expensive and this is the reason why only few of them have survived in the market. Meena says that talking about the current level, Zomato and Star Health have the ability to give profits to investors in the long term. Investors can also include Nykaa in their portfolio. But regarding the shares of Paytm, Santosh Meena says that when this share will give profit, it cannot be said right now.
Global conditions will determine the move
Prasanth Taapsee, Vice President (Research) of Mehta Equities Ltd. says that there is a lot of selling pressure in the recently listed new age business companies. Zomato’s shares are falling due to fall in gross order value and global uncertainty in Zomato’s quarterly results. If the global conditions improve, then Zomato shares can see a good trading zone of Rs 80 to 92 in the coming time. Risk averse investors can buy Zomato at current levels.
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Shares of Star Health have also fallen by 14 per cent in a month. This too is still below its issue and listing price. Divam Sharma, founder of Green Portfolio, says that the price of Star Health’s IPO was also exaggerated. The company suffered a setback in the Corona epidemic, as the claims had increased a lot. Apart from this, the company has also suffered due to high competition in the market. Divam says that investors should wait to invest in this stock now. The valuation of Star Health on price to book value basis is still higher than its competitors.
(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you wish to invest in any of these, please consult a Certified Investment Advisor first. Tech for FTCP is not responsible for any profit or loss caused by you. Will happen.)
Tags: Paytm, stock market, Stock tips, Zomato
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