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New-age tech stocks are bleeding, Nikhil Kamath will still not buy them

The selling in these stocks has been triggered by fears of higher interest rates reducing their net present value and in some cases like Paytm, doubts over their business model

Mumbai / January 28, 2022 / 12:22 PM IST
Nikhil Kamath

Nikhil Kamath

 
 
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The bloodbath in new-age technology stocks listed on Dalal Street over the past few weeks have not impressed the Co-founder of Zerodha and TrueBeacon Nikhil Kamath, he wants more.

Shares of several technology startups such as One97 Communications (parent of Paytm), Zomato, FSN E-commerce (parent of Nykaa), PB Fintech (parent of PolicyBazaar), and others that stormed the public market last year have nosedived 20-60 percent over the past three months.

The selling in these stocks has been triggered by fears of higher interest rates reducing their net present value and in some cases like Paytm, doubts over their business model.

“From the very beginning, their valuations did not make sense. Even at current valuations, I don't see where the rationale is to enter these stocks,” Kamath told Moneycontrol in an interview.