Paytm, Zomato, Nykaa, PB Fintech: Mutual funds bought these new-age stocks this earnings season
Mutual funds increased exposure to many new-age stocks including FSN E-Commerce Ventures (Nykaa), One97 Communications (Paytm), PB Fintech (Policybazaar) and Zomato in January amid December quarter earnings. A few new-age companies later came out with healthy set of results, leading to rating upgrades.
Fund managers increased stake in Nykaa to 15,10,51,560 shares or 5.30 per cent in January from 12,14,94,639 shares or 4.26 per cent in December. MFs held a total of Rs 2,064.87 crore worth Nykaa shares at January-end against Rs 1,881.34 crore worth shares at December-end.
Nykaa’s December quarter results met growth expectations, but margins undershot, said analysts citing the impact of macros and down-trading impact on both BPC and Fashion segments. Price targets for the stock (up to Rs 250 level) suggests healthy upside potential ahead.
In Paytm, mutual funds increased their holdings in the Vijay Shekhar Sharma-led company to 1,31,92,000 shares or 2.04 per cent in January from 1,12,45,933 shares or 1.73 per cent, stake in December. MFs held a total of Rs 700 crore worth Paytm shares at January end against Rs 597 crore worth shares at December end. Paytm reported narrowing of consolidated loss at Rs 392 crore for the December quarter compared with a loss of Rs 778.50 crore in the year-ago period.
Macquarie, which called the Vijay Shekhar Sharma-led company a cash guzzler on the listing day, doubled upgraded the stock to ‘Outperform’ from ‘Underperform’ post Q3 results. The foreign brokerage now values the stock at Rs 800 apiece against Rs 450 earlier.
Mutual funds increased stake in Policybazaar to 3,89,10,593 shares or 8.64 per cent in January from 3,62,30,288 8.05 per cent in December. MFs held a total of Rs 1,668 crore worth Policybazaar shares at January end against Rs 1,624.20 crore worth shares at December end. PB Fintech’s December quarter numbers were strong, said Nuvama Institutional Equities, as premium throughput increased 70.3 per cent YoY. This, it said, largely drove a 66.1 per cent YoY jump in revenue and also Ebitda loss reduction to Rs 133 crore from Rs 317 crore YoY.
Kotak Institutional Equities said Policybazaar’s business performance remains consistent, with high growth and steadily moving to profitability. “Unlike digital peers, its long-term estimates have been broadly unchanged since initiating coverage. Path to profitability and pick up in credit business have been better than expected initially, the brokerage said while reducing its fair value on the stock to Rs 700 from Rs 730.
Mutual funds increased stake in Zomato to 51,44,50,057 shares or 6.02 per cent in January from 47,97,77,606 5.61 per cent stake in December. MFs held a total of Rs 2,064.87 crore worth Nykaa shares at January end against Rs 1,881.34 crore worth shares at December end. Zomato’s December quarter revenue was better than expected but profitability was in line with expectations.
Emkay said Zomato’s operating performance was mixed. It said Zomato registered a disappointing muted gross order value, but contribution margin in food delivery and Hyperpure revenue growth beat expectations.
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