In regards to the class of ’21 shares that went public in 2021 and 2022, he mentioned a few of them might make it massive.
“There isn’t a extra hype. There was a whole lot of hype and a loopy type of valuation in November and December final yr. These issues are gone. 60-70% correction has occurred now,” Agrawal instructed ET NOW whereas praising promoters of the new-age corporations who need to make revenue in a short time.
“A few of them can be very profitable and among the corporations are very distinctive. There aren’t any me-too corporations in that exact phase,” mentioned the worth investor whose workforce has been assembly the administration of new-age corporations.
“We are attempting to determine the trail to revenue or the scale of the revenue. Does it have a reference to the present market cap? Can we see the sunshine of the day in what they’re saying that we’re going to make Rs 1,000 crore revenue within the subsequent 3-4 years?,” Agrawal mentioned, including that the best way to go about now could be to place small bets as a few of them will change into very massive.
New-age shares like Paytm and Zomato had been among the many greatest wealth destroyers in calendar yr 2022. On the again of bettering concentrate on profitability, the shares have seen some shopping for curiosity within the final 1-2 months.
Up to now in 2023, Nifty is down round 3.7% amid promoting by FIIs and a lacklustre Q3 earnings season.Agrawal says nothing can cease the inventory market from rallying as soon as the earnings development picks up.
“Because the market will get confidence on subsequent yr’s earnings development, I don’t suppose it will wait whether or not FIIs promote or they purchase, the market will simply blast,” he mentioned.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t signify the views of Financial Instances)
