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

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.