Mixed Week For New-Age Tech Stocks Amid War Clouds, ideaForge Biggest Gainer

It was a rocky week for the Indian equity market amid the rise in tensions between India and Pakistan after the Indian armed forces hit terrorist infrastructure in the neighbouring country and Pakistan-occupied Kashmir during the night of May 6 and 7 in response to the gruesome terrorist attack in Pahalgam.

As a result of this and the ongoing Q4 earnings seasons, it turned out to be a mixed week for new-age tech stocks under Inc42’s coverage. Thirteen out of the 33 new-age tech stocks gained in a range of 0.01% to nearly 22% this week, while 20 stocks ended the week 0.02% to about 13% lower. 

While Paytm and IndiaMART ended the week almost flat, ideaForge emerged as the top gainer despite reporting another quarter of loss in Q4 FY25. The dronetech company’s shares zoomed 21.73% to end the week at INR 463.20. 

Its competitor, BSE SME-listed DroneAcharya, was the second biggest gainer this week, with its shares zooming 9.96% to end the week at INR 68.13.

Unicommerce’s shares ended the week with a hefty gain after the company declared its Q4 results on Monday (May 10). The ecommerce SaaS company’s net profit for the quarter under review rose 17% YoY to INR 3.4 Cr, while operating revenue zoomed 71% YoY to INR 45.3 Cr.

After touching an intraday high of INR 141.55 on Tuesday, the company’s shares stabilised at INR 123.55 at the end of week. This marked a 3.26% gain from last Friday’s close.

Foodtech major Swiggy’s shares ended 2.57% higher at INR 313.20. The company declared its financial results for Q4 FY25 after the close of market on Friday. Its net loss surged 95% YoY to INR 1,081.2 Cr, while operating revenue grew 45% YoY to INR 4,410 Cr.

Other gainers of the week included PB Fintech, ixigo, Zaggle, among others.

Meanwhile, NSE SME-listed TAC Infosec emerged as the biggest loser, with its shares crashing 12.94% to end the week at INR 1,009.90. Veefin Solutions, another SME company which was on a bull run after disclosing profitable H2 FY25 performance, saw a 8.92% decline in its shares to end at INR 300.65, making it the third biggest loser this week

The second biggest loser this week was CarTrade, with its shares slipping 9.83% to end at INR 1,594.10. The company reported yet another profitable quarter in Q4, with its profit zooming 85% to INR 46.1 Cr in the March quarter from INR 24.9 Cr 

However, CarTrade’s operating revenue only grew 17% YoY to INR 169.5 Cr during the quarter under review. This was lower than the estimates of some of the brokerages. JM Financial had projected a 21% YoY revenue growth for CarTrade, along with an adjusted EBITDA margin (excluding ESOP expense) of 26.3%. The company exceeded the EBITDA margin projection, reporting a 27% EBITDA margin.

Meanwhile, the week saw shares of MobiKwik and Ola Electric continue to spiral downwards. The former touched an all-time low at INR 226.85 and ended the week 6.98% lower at INR 231.10. Shares of Ola Electric plunged 3.79% to end at INR 46.75. 

Ola Electric’s rival Ather Energy saw similar selling pressure in the first week of its trading. After a near flat listing on Tuesday, the company’s shares slipped over 8% to end the week at INR 299.70.

With the addition of Ather Energy, the total market capitalisation of 33 new-age tech stocks ended the week at $79.11 Bn as against $79.08 Bn of 32 stocks at the end of the last week. 

India-Pakistan Conflict Takes Toll On Market

The tensions between India and Pakistan resulted in the broader market seeing a decline. Benchmark indices Sensex and Nifty 50 ended the week 1.3% lower each at 79,454.47 and 24,008, respectively.

The sell-off in the market intensified on the final trading day of the week, after the Indian armed forces reported multiple overnight drone and loitering munition attacks by Pakistani forces, heightening fears of further escalation.

“Elevated geopolitical risks have significantly heightened market volatility, as reflected in the surge of the India VIX. Investors are advised to adopt a stock-specific approach and refrain from taking aggressive positions until there is more clarity. A hedged strategy is recommended to manage near-term risks, while close monitoring of geopolitical developments will be crucial in shaping the market’s next move,” Ajit Mishra, SVP, Research, Religare Broking said. 

While the two countries reached a ceasefire agreement yesterday, India said that Pakistan breached the agreement within hours of it coming into effect.

Now, let’s take a detailed look at the performance of some of the new-age tech stocks this week.

ideaForge Gains Despite Reporting Another Loss-Making Quarter

The dronetech company reported a net loss of INR 25.7 Cr in Q4 on Thursday (May 8) as against a net profit of INR 10.3 Cr in the year-ago quarter. Operating revenue slumped 80% YoY from INR 20.3 Cr.

Despite this, its shares ended Friday’s session 20% higher. 

Important to note that the drop in revenue and loss was pretty much in line with estimates of the brokerages. 

“ideaForge will continue to report disappointing numbers due to lower opening order book, delay in order finalisation of L1 orders and muted ordering activity. Revenue for ideaForge will be driven by run rate business,” brokerage JM Financial said in a note earlier this week.

The company’s shares gained in line with an uptick in defence-related stocks, such as Bharat Forge and Hindustan Aeronautics, which gained amid the India-Pakistan tensions. 

Nazara Continues Its Buying Spree

Gaming major Nazara ended the week 9.73% higher at INR 1,104.70. The company saw its market cap rise to $1.13 Bn by the end of this week. 

During the week, its subsidiary Absolute Sports announced plans to buy out Titan Insider Digital’s TJRWrestling.net and ITRWrestling.com in an all-cash deal. 

The deal, pegged at INR 10.5 Cr, will help the company expand its footprint in the US and bolster its position in the combat sports segment like wrestling. The gaming giant plans to strengthen its existing presence in the region through Freaks 4U, a marketing services firm that works with gaming and esports platforms in the US.

Meanwhile, the company also secured the NCLT’s nod for its resolution plan to acquire Smaaash Entertainment. The online gaming company had received the letter of intent to buy Smaaash in August last year.