The Rise of FinTech

Shares of internet-based startup companies such as Paytm, Policy Bazaar, Zomato, and Nykaa have fallen by up to 75% from their all-time highs in the last year. Yet, some brokerage houses have turned bullish on these stocks, predicting a 90% increase in their value.

Citi has assigned a buy rating to One97 Communications (Paytm), highlighting the company's growth drivers and favourable pricing. It has assigned a target price of Rs 1,061 for Paytm, implying a 90% upside potential. Similarly, Kotak Institutional Equities has assigned Zomato a fair value objective of Rs 82, citing greater restaurant take rates and higher package renewal fees for Gold users.

Nomura has maintained its buy rating on Nykaa, citing the company's completion of key capital expenditures on fulfilment centres for the BPC business. It has set a target price of Rs 214 for Nykaa, implying a 60% upside potential. Prabhudas Lilladher recommends purchasing and collecting PB Fintech with an upside objective of Rs 750 and a stop loss of Rs 500.

Nevertheless, Nuvama Institutional Equities downgraded PB Fintech to 'hold' with a target price of Rs 550 following its Q3 earnings, noting its limited upside potential.

Overall, the study implies that, despite a drop in stock prices, these fledgling enterprises still have room for growth and profitability. When making investing decisions, investors might take these brokerage houses' suggestions into account. It is also critical to consider the hazards of investing in startup companies and to undertake extensive research before making any investment decisions.