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New-Age Indian Stocks Rally, But Analysts See Uneven Upside

New-Age Indian Stocks Rally, But Analysts See Uneven Upside
Paytm, Eternal, Lenskart, Nykaa, Honasa: New age stocks gain up to 49% in 3 months; worth a buy? · businesstoday.in

Several newer Indian companies have seen their share prices rise over the past three months.

Paytm, Eternal, Lenskart, Nykaa and Honasa were among the stronger performers.

However, analysts do not all see the same amount of future growth.

Paytm’s average target suggests a small fall, although some brokerages have set higher targets.

Eternal received a Buy rating from Axis Securities because it is becoming profitable in important business areas.

Lenskart’s sales grew faster than analysts expected, but its average target leaves little additional upside.

Nykaa reported strong growth in sales and profits, especially in its fashion business.

Honasa is expanding brands that already have large annualized sales.

Investors therefore need to weigh recent gains against each company’s expected future performance.

Key facts

Paytm price
Rs 1,617.80 on Wednesday
Eternal three-month gain
32.17%
Lenskart three-month gain
28%
Lenskart June-quarter revenue growth
43.6% year-on-year
Nykaa three-month gain
28%
Nykaa first-quarter profit growth
PAT increased 226% year-on-year
Honasa consensus target
Rs 559, implying 18.6% potential upside

Quotes

Axis Securities

Brokerage and financial research firm covering Eternal Ltd

“Based on SOTP Valuation, we maintain our Buy rating on the stock, driven by the company’s transition to adj. Ebitda positive in key verticals, strong scalability potential, and continued expansion into adjacent consumption categories.”
businesstoday.in

Sources

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