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SUMMARY
While shares of DroneAcharya tumbled almost 10%, 10 other new-age tech stocks fell in a range of 0.5% and 9% this week
Eight stocks gained in a range of 1% to over 8%, with Delhivery emerging as the biggest winner. It was followed by Tracxn Technologies
Amid the holiday season, Sensex fell 0.53% to end the week at 71,106.96 and Nifty50 tumbled 0.5% to 21,349.4
Amid a subdued week for the broader market, Indian new-age tech stocks put up a mixed performance on the bourses.
Eleven out of the 19 stocks under Inc42’s coverage slumped this week, with DroneAcharya emerging as the biggest loser. The shares of the drone startup slumped almost 10%, while 10 other new-age tech stocks fell in a range of 0.5% and 9% this week.
Among the losers, Zaggle fell 8.7%, Nykaa declined 2.5%, IndiaMart slipped 2.8%, and MapmyIndia fell over 6%.
On the other hand, eight stocks gained in a range of 1% to over 8%. Delhivery emerged as the biggest winner this week, followed by Tracxn Technologies (gained almost 8%).
RateGain, Paytm, Nazara Technologies, ideaForge, Zomato, and Mamaearth were the other gainers for the week.
Earlier this week, Nazara announced partnerships with four Indian gaming studios to publish five casual and mid-core games in India. On the other hand, RateGain’s market capitalisation surpassed the $1 Bn this week as the surge in the stock continued.
In the broader market, Sensex fell 0.53% to end the week at 71,106.96 and Nifty50 tumbled 0.5% to 21,349.4.
Though the benchmark indices saw a sharp dip on Wednesday, analysts believe it was an exception and the trend remains bullish.
Siddhartha Khemka, head of retail research at Motilal Oswal, said that the underlying tone of the market remains positive. However, the market might remain range-bound with stock-specific action likely during the last week of the year on account of the holiday season, he said.
Dr. Joseph Thomas, head of research at Emkay Wealth Management, said, “Bullish markets are interspersed with minor corrections due to a myriad of factors, with profit booking being one of the critical ones. With the thinning of institutional participation, the markets witnessed volatility but managed to close on a positive note.”
“In the near term, the market may remain volatile, and find its footing only in the new year as the holiday season ends,” he added.
Despite a mixed market performance, the total market capitalisation of the 19 new-age tech stocks under Inc42’s coverage stood at $41.01 at the end of this week as against $38.48 Bn last week.
Now, let’s take a look at the performance of some of the major new-age tech stocks this week.
Delhivery Opens New Trucking Terminal
Shares of logistics unicorn Delhivery surged 8.3% to end the week at INR 387.3 on the BSE. The stock witnessed a significant rally on Thursday, a day after the company announced the launch of its mega-gateway in Bhiwandi, one of India’s largest trucking terminals.
The terminal, built over a land area of 12,00,000 sq ft, combines automated hub, sortation, returns, and freight operations with the capability to handle Delhivery’s parcel and part truckload freight volume simultaneously, the logistics company said in a statement.
Delhivery’s performance has been subdued this year relative to the gains made by other new-age tech stocks due to change in investor sentiment. The logistics unicorn’s shares are trading 16.8% higher year to date (YTD).
Commenting on the stock, Ganesh Dongre, senior manager of technical research at Anand Rathi, said that a short-term bounce back is expected till INR 420.
“One can buy the stock at the current level. The immediate stop loss would be INR 350,” he said.
Buzz Around Zomato Acquiring Shiprocket
A report emerged on Thursday that foodtech major Zomato, a backer of Shiprocket, made an offer to acquire the logistics unicorn at a valuation of about $2 Bn. However, within hours, Zomato rejected the report in an exchange filing.
“We have noticed that there are certain news articles circulating in the mainstream media with the subject “Zomato offers to acquire Shiprocket for $2 Bn”. We deny this statement and would like to caution investors against such incorrect news floating in the market. We remain focused on our existing businesses with no plans for any acquisition at this moment,” it said.
However, the events didn’t have any major impact on the company’s share performance during the last two days of the week.
Overall, Zomato gained 3.9% this week, ending Friday’s session at INR 128.45 on the BSE.
DroneAcharya Becomes The Biggest Loser
Shares of drone startup DroneAcharya slumped 9.9% this week, closing Friday’s session at INR 185.75 on the BSE.
Earlier in the week, DroneAcharya said it has secured a contract from the Ministry of Defense, Department of Military Affairs, Bhalra in Jammu and Kashmir for the supply of drone lab equipment aimed at facilitating drone simulator training.
“The integration of these drone lab equipment further solidifies DroneAcharya’s role in supporting the Ministry’s efforts to cultivate adept Drone Pilots within the military ranks,” the startup said.
Besides, DroneAcharya also launched DGCA-certified drone pilot training for Maharashtra Police.
However, its shares plunged 7% in two consecutive sessions after these two announcements.
Though the shares gained a bit on Thursday, the stock fell 4.3% again on Friday.
On Thursday, the startup also announced acquisition of a 51% stake in drone manufacturing company PYI Technology Private Limited.
Shares of DroneAcharya are trading almost 36% higher YTD.
Anand Rathi’s Dongre said that traders can keep a on buy-on-dips strategy on the counter. “Trading stop loss will be at INR 174 and the short term target will be INR 200-INR 210,” he said.
