A select group of Indian 'new-age' stocks has demonstrated remarkable growth over the past three months, with some companies recording gains of nearly 50%. This impressive performance has outpaced returns delivered by midcap and smallcap indices during the same period, signaling renewed investor confidence in these technology-driven enterprises.
Paytm Leads the Charge with Significant Gains
One97 Communications Ltd, the parent company of Paytm, has spearheaded this rally, witnessing its stock surge by 49% in the last quarter. The scrip hit a high of Rs 1,732 on August 26, marking its highest level since its initial public offering (IPO) in November 2021. Paytm's strong financial performance for the June quarter underpinned this growth, reporting a 31% year-on-year (YoY) increase in gross merchandise value (GMV) and a 28% YoY jump in revenue. The company also improved its EBITDA margin to 8%, driven by an expanding financial services business and strategic cost rationalization efforts.
Eternal Ltd and Lenskart Solutions Also See Strong Growth
Eternal Ltd recorded a substantial 32.17% rally over the past three months. Trading at Rs 326.65, the stock has recovered significantly from its 52-week low of Rs 212.55. Analysts at Axis Securities maintain a 'Buy' rating on Eternal, citing its transition to adjusted EBITDA positive in key verticals, strong scalability potential, and continued expansion into adjacent consumption categories, setting a target price of Rs 390.
Lenskart Solutions Ltd also experienced a robust 28% increase in its stock price over the period, reaching a record high of Rs 674.90 on August 31. The company reported a consolidated revenue growth of 43.6% YoY in the June quarter, surpassing analyst expectations. This growth was fueled by a 25.7% YoY increase in volumes and strong performance from its international business.
Nykaa and Honasa Consumer Show Promising Results
FSN E-Commerce Ventures Ltd, known as Nykaa, saw its shares gain 28% during the same three-month period. Nykaa's first-quarter results were impressive, with revenue, EBITDA, and Profit After Tax (PAT) increasing by 29%, 68%, and 226% YoY, respectively. Analysts noted steady performance in its Beauty and Personal Care (BPC) business and a standout quarter for its Fashion segment, which achieved breakeven.
Honasa Consumer Ltd, the parent company of Mamaearth, climbed 17% in the past three months. HDFC Securities highlighted Honasa's strong execution, with two of its brands now exceeding an annualized run rate of Rs 1,000 crore, providing a solid foundation for scaling its newer brands more rapidly.
Other New-Age Stocks with Moderate Gains
- PB Fintech Ltd: Up 9.8%
- Delhivery Ltd: Up 5.38%
- Billionbrains Garage Ventures Ltd: Up 2.04%
While these companies showed single-digit returns, their positive trajectory further underscores the broader optimistic sentiment surrounding India's new-age public companies.