In the first half of 2025, several popular “new-age” Indian stocks have faced major losses. Companies like Ola Electric, Paytm, Zomato, Swiggy, and Nykaa have seen sharp drops in their share prices, leaving investors wondering—is it still worth investing in them?
Major Stock Price Drops in H1 2025
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Ola Electric: Down nearly 50%
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Zomato, Swiggy, Paytm, PolicyBazaar: Fell between 6% to 25%
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Nykaa: A rare positive story, up about 28%
Why Are These Stocks Falling?
1. Global Economic Uncertainty
Rising interest rates, inflation, and global tensions have made investors more cautious.
2. Lack of Profitability
Many new-age companies are still not profitable. Today’s investors are shifting focus from just growth to profit and sustainability.
3. High Operating Costs
Quick-commerce and delivery-based businesses like Swiggy and Zomato are struggling with thin margins due to high delivery and competition costs.
Is There Any Hope?
Yes. In the fourth quarter of FY25, around 11 out of 17 of these companies either turned profitable or reduced their losses significantly.
✅ Improving Performers:
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Nykaa
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Paytm
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Delhivery
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PolicyBazaar
❌ Still Struggling:
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Swiggy
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Ola
Key Takeaways for Investors
Focus on Profitable Companies
Firms like Nykaa have gained investor trust by showing strong financial improvement.
Be Careful with Cash Burners
If a company continues to spend more than it earns, it may face serious trouble in the long run.
Look at Long-Term Strategy
Don’t just follow hype. Understand the company’s future plans, business model, and path to profitability.
Should You Invest in These Stocks Now?
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Yes, if you believe in the company’s long-term future and it shows signs of improvement.
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No, if the company still has unclear earnings, poor financial health, or relies only on hype.
Remember: Buying during a slump can be profitable, but only when you invest in the right company.
Final Thoughts
The crash in new-age stocks may offer a chance to buy strong companies at lower prices—but only if they show a clear path to growth with profits. Be cautious, do your research, and avoid investing based only on trends or popularity.
Disclaimer:
This blog is for educational purposes only. We are not SEBI-registered financial advisors. Please consult a professional financial advisor before making any investment decisions.
