4 New Age Digital Tech Stocks That Have Plunged To Near 52-Week Lows

Tech stocks across the globe have been hit hard, ever since bond yields in the US surged. Tech stocks in India too have felt the brunt, especially the new age digital tech stocks. We are talking particularly and solely about the ones that recently came up with IPOs. Here are 4 such stocks that are near 52-week lows, from the tech digital space.

Paytm (One97 Communications)

52-week low price	Current market price	% away from 52-week low
Rs 875	Rs 906	3.47%

The One97 Communications stock, which is the parent of Paytm has plunged from the IPO price of Rs 2,150 to the current price of Rs 906. Investors have lost heavy money if they had been allotted shares in the IPO and are still holding them. Several brokerages have downgraded the stock to a sell. While we do not want to arrive at any valuations matrix we continue to believe that almost all of the stocks are overvalued from the space and some have reported losses. These stocks are best avoided.

Policy Bazaar (PB Fintech)

52-week low price	Current market price	% away from 52-week low
Rs 778	Rs 725	6.89%

Like Paytm, investors in this IPO, who are still holding the IPO allotted shares are sitting with losses. The IPO was priced at Rs 980 and the stock is currently at Rs 778, so a cut of near 20%. We have not done any analysis on this stock and do not intend to.

The stock of PB Fintech was last trading at Rs 778.80 on the NSE.

Zomato

52-week low price	Current market price	% away from 52-week low
Rs 84.50	Rs 88.00	5.00%

This company is loss making and reported narrowing of its net loss at Rs 63 crore for the quarter ending December 31, 2021, as against a net loss of Rs 353 crores in the corresponding period of last year.

Again, the stock is of face value Re 1 and hence investors should ask themselves, whether at a price of Rs 88, is cheap price for a loss making company.

Nykaa (FSN E-commerce ventures)

52-week low price	Current market price	% away from 52-week low
Rs 1571	Rs 1640	4.89

This is one stock that gave good returns to investors who received allotment at the IPO price of Rs 1,125. The stock is not too far away from its 52-week low. We believe some of the stocks from the new age digital space are heavily priced. Some of them are trading at ridiculously high price to earnings multiples. One is not sure, if such over exuberance in some of these stocks is warranted.

While there maybe growth going ahead, stocks have crossed their infection point. Unless, investors don't start seeing sustained profit growth in the next 1-2 years, their patience may wear thin.

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article.