While most new-age technology companies witnessed their share prices take a downturn this week, one startup emerged as an outlier – delivering gains to investors. According to analysis of key players in this space, Zaggle was the top performer with its stock rallying nearly 9%.
An examination of 22 listed new-economy tech firms tracked by a leading media platform found that only four saw increase in their share value over the last five trading sessions. These modest gains ranged from 0.15% to approximately 9%. Zaggle led the pack with its stock price rising 8.8% supported by a strong fourth quarter financial showing. The digital payments provider reported over a 150% jump in yearly profit along with continued growth in key operating metrics.
In contrast, the majority struggled with 18 listings slipping between 0.7% to 18.5%. The steepest fall was reserved for TAC Infosec, which witnessed an 18.54% drop in its stock price. Other prominent names like Paytm, Nykaa and PB Fintech – which led price increases last week – also saw corrections this cycle.
The mixed performance of new-age tech stocks runs contrary to positive sentiment witnessed in broader market benchmarks, with both key indices adding nearly 2% over the same period. Benchmark gains are attributed to large caps regaining lost ground more than wider market momentum by analysts. However, volatility is expected to continue among more startup-focused stocks as companies report yearly outcomes and global economic concerns persist.
Going forward, investor focus will remain on consistency of financials and path to profitability demonstrated by these emerging businesses operating in high growth but still evolving sectors. This week has reaffirmed that timely delivery of results and visibility of the road ahead will remain key determinants of shareholder returns for new-economy listed companies.
