What Samir Arora says on Paytm, Zomato and other new age stocks
The founder at Helios Capital said the private equity investors tried to extract too much of a premium from new-age companies for listing those companies in " hot days of 2021 for new issues."
- Aug 8, 2023,
- Updated Aug 8, 2023 4:23 PM IST
Samir Arora of Helios Capital says he bought two new-age stocks namely One 97 Communications (Paytm) and Zomato in the past and is still holding them, despite the recent rally in the two names. In an interview to BT TV, Arora said his Helios bought the two stocks at good prices when the stocks were battered and down 60-70 per cent from their peaks, as he found no problem with the business models of the two companies.
Arora said he bought Paytm at around Rs 500 apiece. "Both of these have had massive rallies. We still hold both of them. But prices today are much different from what they were 5-6 months ago. Please be cautious. In general, even in the other new age stocks that we don't own -- that, we should have owned, even those have done well as the biggest thing that was wrong with them was not business models," Arora said.
The founder and fund manager at Helios Capital said the private equity investors tried to extract too much of a premium from new-age companies by listing those entities in "hot days of 2021 for new issues."
"That punishment has been taken by people who did not look at price but only future prospects. In fact, the future prospects have actually been okay now as other weaker companies have gone out of business. There were 100 fintech companies two years ago; now there are just 15-20 left and only 1-2 are listed. Similarly, in the food delivery space, where there were say 15 companies that were being funded, only two are left. So competition has come down," Arora said.
Competition in private equity funding space, new startups "who are willing to lose money for many years -- that have died down. "Whoever has survived, their prospects have improved. But it is very different from six months ago when we were buying them. They were really not the obvious choices. Even today, they are not the obvious choices, but we still have them and we may have them for some time," Arora said.
Also read: Adani Ports Q1 results preview: Sales likely to grow 15-20%, profit may jump sharply
Also read: Hot stocks on August 8, 2023: IRFC, RateGain Travel, Graphite India, Paytm, Inox Wind and more
Samir Arora of Helios Capital says he bought two new-age stocks namely One 97 Communications (Paytm) and Zomato in the past and is still holding them, despite the recent rally in the two names. In an interview to BT TV, Arora said his Helios bought the two stocks at good prices when the stocks were battered and down 60-70 per cent from their peaks, as he found no problem with the business models of the two companies.
Arora said he bought Paytm at around Rs 500 apiece. "Both of these have had massive rallies. We still hold both of them. But prices today are much different from what they were 5-6 months ago. Please be cautious. In general, even in the other new age stocks that we don't own -- that, we should have owned, even those have done well as the biggest thing that was wrong with them was not business models," Arora said.
The founder and fund manager at Helios Capital said the private equity investors tried to extract too much of a premium from new-age companies by listing those entities in "hot days of 2021 for new issues."
"That punishment has been taken by people who did not look at price but only future prospects. In fact, the future prospects have actually been okay now as other weaker companies have gone out of business. There were 100 fintech companies two years ago; now there are just 15-20 left and only 1-2 are listed. Similarly, in the food delivery space, where there were say 15 companies that were being funded, only two are left. So competition has come down," Arora said.
Competition in private equity funding space, new startups "who are willing to lose money for many years -- that have died down. "Whoever has survived, their prospects have improved. But it is very different from six months ago when we were buying them. They were really not the obvious choices. Even today, they are not the obvious choices, but we still have them and we may have them for some time," Arora said.
Also read: Adani Ports Q1 results preview: Sales likely to grow 15-20%, profit may jump sharply
Also read: Hot stocks on August 8, 2023: IRFC, RateGain Travel, Graphite India, Paytm, Inox Wind and more