Zomato does the business of food delivery. Image Credit source: Twitter/@ANI
Paytm, Zomato, Nykaa, Policy Bazaar, Car Trade and Delhivery are all companies of new generation industrialists in India. Where all of them 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 expectation. But the market has its own tricks, so its ‘latad’ forces people to take decisions according to the opportunity and time. This is what happened with these companies…
When the shares of these companies, which entered the market with considerable valuations, reached the market, they kept on declining continuously. The reason for this was the financial results of the companies, because the biggest problem with all these companies was profitability. Retail investors felt cheated the most in this whole exercise. However, its positive effect was that this process changed the way people worked.
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Compensation for loss in 2023
In the year 2022, there was a decline of about Rs 1.59 lakh crore in the market valuation of these companies. While the condition of all these companies has improved in about 6 months of 2023, 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 the better finance of these companies and move towards profitability.
Steps taken for profitability
These companies took several steps to get into profitability. For example, reduced the number of employees more than necessary. Reduced the company’s overheads and rationalized its acquisition policy of other companies.
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The advantage of this is that the shares of One97 Communications, the proprietary company of Paytm, have risen 63 percent this year. Whereas in 2022 it fell by 60 percent. At the same time, the shares of Policy Bazaar’s parent company PB Fintech have seen a growth of 53 percent, whereas in 2022 they fell by 47 percent.
Similarly, Zomato shares grew by 25 percent, Delhivery’s by 15 percent and Cartrade’s by 2 percent. Although Nykaa’s shares have fallen during this period, yet now its stock is seeing a flight.