Delhivery stock price: Zomato, Delhivery, PB Fintech among MFs’ top purchases in Nov; are the tables turning?
, Delhivery, , and FSN E-Commerce were among the stocks that made to the “top buy” list of some mutual funds.
Aditya Birla Sunlife Mutual Fund added Nykaa-parent FSN E-commerce stocks worth Rs 270 crore during the month, according to Nuvama Wealth Management.
Axis Mutual Fund’s prominent additions included Zomato worth Rs 227 crore, while Franklin Templeton Mutual Fund added Delhivery and PB Fintech to its portfolio by purchasing shares worth Rs 126 crore and Rs 123 crore, respectively.
In November, stocks like Delhivery, PB Fintech and FSN E-Commerce witnessed selling by existing shareholders who chose a partial exit following the expiry of the 1-year lock-in period, due to significant erosion in the value of their investments in these companies.
While Tiger Global offloaded a little over 4% stake in PB Fintech, TPG Capital and Lighthouse India fund sold partial stakes in FSN E-Commerce. American private equity major Carlyle Group sold 2.5% stake in Delhivery.
Are the tables turning around for companies?
Most market experts believe that the overhang of selling by existing shareholders remains for many of the companies, and therefore, are not comfortable buying them.
“We are comfortable owning businesses where we could see a reasonable path to profitability and make sense from a capital efficiency standpoint. This has led us to avoid investment in some of the new age companies,” said Vinit Sambre, head of equities at DSP Mutual Fund.
But not all stocks in this space are a “no-no” for money managers.
The sharp improvement in its financials and the buyout of Blinkit has turned the tables for Zomato.
“We believe Zomato is a perfect play on a new-age tech company and rising consumerism in India. The company is a disruptor in the food business, albeit offering a “win-win-win” solution, Sachin Shah, fund manager with Emkay Investment Managers said.
Delhivery is another stock that some analysts are bullish on given the strong growth prospects for the logistics sector.
Global investment bank Morgan Stanley recently upgraded its rating on Delhivery to “overweight”, citing favourable risk-reward ratios.
The bank believes that once Delhivery’s profitability normalizes and growth returns possibly in FY24, the valuation multiples have room to re-rate.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
