Return of investor confidence lights up new-age companies' stocks

Investor confidence in some new-age stocks has improved significantly. One 97 Communications (Paytm) hit a 52-week high on Friday, while PB Fintech (Policy Bazaar) and Zomato were near similar levels earlier last week

- Ujjval Jauhari

NEW DELHI : Experts are of the view that the improvement in financials and expectations of a turnaround have led to a change in investor perception.

“They have shown a gradual turnaround in their financials and their valuations had fallen to levels that seemed attractive to some investors," said Deepak Jasani, head of Retail Research at HDFC Securities. Limited selling pressure meant that uptick has been relatively sharp.

The business model has changed for One 97 Communications and with new credit strategies that are likely to scale up further, investors expect the new business model to be a game changer, AK Prabhakar, head of Research at IDBI Capital, said.