When Paytm-Zomato got ‘Latad’, then investors benefited

Paytm, Zomato, Nykaa, Policy Bazaar, Car Trade and Delhivery are all companies of new generation entrepreneurs in India. Where all these worked to change the lifestyle of the common people, on the other hand they also gave the dream of becoming a successful industrialist. So when these companies entered the stock market, people invested in the shares of these companies with hope. But the market has its own trick, so its ‘latad’ forces people to take decisions according to the occasion and time. This is what happened to these companies
When the shares of these companies entered the market with considerable valuations, they continued to decline when they hit the market. The reason for this was the financial results of the companies, as the biggest problem with all these companies was profitability. Retail investors felt cheated the most in this whole exercise. However, its positive impact was that the process changed the way people worked.
In the year 2022, the market valuation of these companies declined by about Rs 1.59 lakh crore. Whereas in about 6 months of 2023, the condition of all these companies has improved and Rs 45,000 crore has been added to the market capitalization. If seen in this way, the loss of the investors is being covered. The reason for this is that these companies have better finance and move towards profits. These companies took several steps to come into profitability. For example, reduced the number of employees more than necessary. Reduced the overheads of the company and rationalized the acquisition policy of other companies.
The advantage of this is that the shares of One97 Communications, the proprietary company of Paytm, have risen by 63 per cent this year. Whereas in 2022 it declined by 60 percent. At the same time, the shares of PB Fintech, the parent company of Policy Bazaar, have seen an increase of 53 per cent, while they declined by 47 per cent in 2022. Similarly, Zomato shares 25 per cent, Delhivery shares 15 per cent and Cartrade shares 2 per cent. have increased. Although Nykaa’s shares have declined during this period, but now its stock is seeing a flight.