JM Financial in its preview note on internet sector said companies such as , (Policybazaar), FSN E-Commerce Ventures Ltd ( ), CarTrade and Affle Ltd are expected to sustain segment-leading growth, but Delhivery, IndiaMART InterMesh Ltd and Just Dial Ltd may see tepid growth rates in Q2. "Info Edge is starting to show green shoots in billings growth. Zomato is expected to sustain robust growth and margin expansion, while Nykaa is likely to gain market share in a tough demand environment across its categories," it said.
PB Fintech’s core insurance premium is expected to grow strongly driven by health insurance and savings, though contribution margins are likely to take a further hit, JM Financial said ahead of Q2 results. "Among classifieds companies, CarTrade would deliver sustain its YoY growth trajectory with sharp sequential improvement in margins. Info Edge recruitment billings delivered strong growth after a few quarters.
Delhivery would continue to face headwinds with self-logistics at Meesho now accounting for 40 per cent of its shipment volumes," it said. While valuations have improved over the past year, JM Financial believes companies such as Nykaa, Zomato and CarTrade can still sustain the strength, with upside capped in PB Fintech. Here's what it said on Q2 results of internet companies: In the Food Delivery segment, JM anticipated a sequential gross order value (GOV) growth of 7 per cent (24 per cent YoY).
It sees MTUs growing to 21.2 million against 20.3 millio.