From $81.20 Bn at the end of the previous week, the market cap of the 32 new-age tech stocks declined to $76.26 Bn
Except Mamaearth parent Honasa Consumer, shares of 31 new-age tech stocks declined in a range of 0.06% to over 26%
Zaggle was the biggest loser this week, with its shares crashing 26.47% to end the week at INR 347.05
Bears continued to tighten their grip on the Indian stocks market, as the country’s total market capitalisation crashed below the $4 Tn mark this week. The Indian equities market has seen wealth erosion of over $1 Tn since the middle of December last year.
In line with the broader market, the market cap of the 32 new-age tech stocks under Inc42’s coverage also fell by about $5 Bn this week.
From $81.20 Bn at the end of the previous week, the market cap of the 32 new-age tech stocks declined to $76.26 Bn.
Except Mamaearth parent Honasa Consumer, shares of all new-age tech stocks declined in a range of 0.06% to over 26%. Zaggle was the biggest loser this week, with its shares crashing 26.47% to end the week at INR 347.05. The company’s market cap fell to $540 Mn.
The second biggest loser this week was BSE SME-listed Veefin Solutions, with its shares plunging 22.77% to end at INR 402.35. During the week, the company said it would take legal action against those circulating rumours about it, without specifying what the rumours are.
“We categorically state that the claims being made in these rumours are baseless, unverified, and without merit… Further, we are monitoring the situation closely and will take appropriate legal and regulatory measures to address the spread of misinformation, as such actions harm not only the company’s reputation but also investor confidence,” Veefin said in an exchange filing on February 11.
Meanwhile, the company continued on its acquisition spree this week, announcing the purchase of 49% in digital marketing agency White Rivers Media for INR $16.66 Mn via its subsidiary Infini Systems Limited.
On the financial front, Nykaa, Tracxn, Yatra, Honasa, TBO Tek, Nazara, RateGain and EaseMyTrip were among the new-age tech companies that declared their Q3 numbers this week. Except Honasa, all of these companies saw their share prices fall this week.
Meanwhile, Fino Payments Bank, Unicommerce, DroneAcharya, MobiKwik, Delhivery, Ola Electric, Swiggy, Yatra, ideaForge, RateGain, EaseMyTrip, FirstCry, and Honasa hit their fresh lows this week.
In the broader market, Sensex ended the week 2.47% lower at 75,939.21 and Nifty 50 fell 2.67% to 22,929.25.
“Sentiment remains weak, even though the index managed to close 155 points off its low, as it continues to trade below a critical short-term moving average. A decisive fall from 22,800 could trigger further panic in the market. On the higher end, 23,100 appears to be the immediate resistance, above which the market may see some respite,” said Rupak De, senior technical analyst of LKP Securities.
Multiple reasons led to the crash in the market this week, the foremost being muted corporate earnings. Besides, concerns over US president Donald Trump’s threats of slapping reciprocal tariffs on countries, rupee depreciation, and the selling spree of foreign institutional investors (FIIs) also played a role. The FIIs have sold Indian equities worth about INR 10.5K Cr since the beginning of this year.
“Despite many positive developments like a good budget, rate cut by the RBI and slight improvement in Q3 results, the FIIs continued to sell. Since largecaps dominate the assets under custody of FIIs, largecaps have been facing the brunt of FII selling. Relentless selling in largecaps has made their valuations attractive, opening up opportunities for long-term investors. Reversal of FII strategy will happen when the dollar index moves down. This will happen, but we can’t predict when,” said V K Vijayakumar, chief investment strategist, at Geojit Financial Services.
Now, let’s take a deeper look at the performance of some of the new-age tech stocks this week.
Honasa Gains Post Q3 Show
Amid the gloomy sentiment, shares of BPC major Honasa gained 3.45% to end the week at INR 222.10.
However, the shares touched a fresh all-time low at INR 197.15 earlier in the week, prior to the company declaring its Q3 FY25 results.
After reporting a loss in Q2 FY25, Honasa returned to the black in Q3 on the back of a 12% QoQ jump in the top line. While the company claimed to be back on “growth trajectory”, its EBITDA margin contracted during the quarter.
Consolidated net profit rose a mere 0.3% YoY to INR 26.02 Cr. EBITDA declined 24% YoY to INR 26 Cr, and EBITDA margin contracted to 5% from 7.1% in Q3 FY24. The company’s revenue from operations grew 6% YoY to INR 517.51 Cr, while expenses surged 9% YoY and 0.2% QoQ to INR 507.31 Cr.
Zaggle Takes Biggest Hit
Despite reporting a 30% YoY uptick in its net profit to INR 30 Cr in Q3, shares of Zaggle declined 26.47% to end the week at INR 347.05. The fintech SaaS company’s revenue from operations increased 69% YoY and 11% QoQ to INR 336.89 Cr in Q3 FY25, while expenses zoomed 72% YoY and 12% QoQ to INR 314.15 Cr.
The company said that the increase in incentives, cash-back expenses, and operational expenditure aligns with its overall expansion of the business.
During the week, the company said that it has been empanelled by Bank of India for user onboarding with KYC (Know Your Customer) validation, prepaid card issue programme, card, user, transaction and preferences management via mobile app interface.
Amid all these, Zaggle CEO and MD Avinash Ramesh Godkhindi acquired 25,000 shares of the company from the open market on February 13. This increased the stake of the promoter and promoter group in the company to 44.03% from 44.01% previously.
