In this blog we are going to get stocks analysis info of 9 best Unicorn companies of India which became Public companies recently. You will get full stocks analysis & views so read it full.
Unicorn Companies: A Comprehensive Overview
What is a Unicorn Company?
A unicorn company is a privately held startup valued at $1 billion or more. These companies are typically innovative, high-growth businesses that disrupt traditional industries.
Unicorn Companies and Their Impact on the Economy
- Contribution to GDP
- The Indian startup ecosystem, including unicorns, contributes around 2-3% to India’s $3.7 trillion GDP.
- Sectors like fintech, e-commerce, SaaS, and logistics have been major growth drivers.
- With India aiming for a $5 trillion economy, unicorns are expected to play a crucial role in economic expansion.
- Job Creation by Unicorns
- India’s unicorn companies have created over 2 million direct and indirect jobs.
- Companies like Zomato, Swiggy, Paytm, and Delhivery employ thousands of people directly and support millions through gig work (e.g., delivery partners, sellers).
- Startups contribute to 10-12% of new jobs in India’s organized sector.
- Overall Importance of Unicorns
Innovation & Disruption – Unicorns drive technological advancements and modernize traditional industries (e.g., Paytm in fintech, Zomato in food delivery). Foreign Investments – Attract billions of dollars from global investors like SoftBank, Sequoia, and Tiger Global, boosting India’s FDI inflows. Digital Transformation – Promote financial inclusion, e-commerce growth, and AI-driven services in India. Global Expansion – Companies like Freshworks and OYO have established India’s presence in international markets.
Future of Unicorns in India
- India has over 110+ unicorns with a combined valuation exceeding $350 billion.
- The government’s push for digitalization, fintech, and AI-based startups will likely lead to more unicorns emerging.
- Expected to contribute 5-6% to GDP by 2030 as they expand operations and go public.
Stocks Analysis of 9 Best Unicorn Companies of India which became Public Companies :
List of Companies which Evolved Into Public Companies from Unicorn in India :
| Company | Industry | IPO Year | Stock Exchange(s) Listed On | Stock Price (Approx.) | Market Cap (Approx.) | Net Profit (Approx.) |
|---|---|---|---|---|---|---|
| Zomato Ltd. | Food Delivery | 2021 | NSE, BSE | ₹190 | ₹1.65 lakh crore | ₹250 crore |
| Paytm (One97 Communications) | Financial Technology (Fintech) | 2021 | NSE, BSE | ₹550 | ₹40,000 crore | -₹1,000 crore (Loss) |
| Nykaa (FSN E-Commerce) | E-commerce (Beauty and Fashion) | 2021 | NSE, BSE | ₹170 | ₹45,000 crore | ₹100 crore |
| PolicyBazaar (PB Fintech) | Insurance Aggregator | 2021 | NSE, BSE | ₹880 | ₹40,000 crore | ₹250 crore |
| Freshworks Inc. | Software as a Service (SaaS) | 2021 | NASDAQ | $15.5 | $4.5 billion | ₹500 crore |
| Delhivery Ltd. | Logistics and Supply Chain | 2022 | NSE, BSE | ₹385 | ₹30,000 crore | -₹500 crore (Loss) |
| Mamaearth (Honasa Consumer) | Consumer Goods (Beauty & Personal Care) | 2023 | NSE, BSE | ₹310 | ₹10,000 crore | ₹150 crore |
| Swiggy | Food Delivery | 2024 | NSE, BSE | ₹800 | ₹90,000 crore | -₹800 crore (Loss) |
| Bajaj Housing Finance | Financial Services (Housing Finance) | 2024 | NSE, BSE | ₹7,200 | ₹3.5 lakh crore | ₹3,000 crore |
Key Notes:
- Stock Prices and Market Cap: Approximate values based on recent trends.
- Net Profit: Estimated based on past financial reports, profitability trends, and market analysis.
- Swiggy IPO: Successfully listed in November 2024.
Extra Reference :
Fundamental & Financial Analysis of 9 Best Unicorn Companies which became Public Companies :
Here’s an approximate financial ratio table for the nine companies based on their general financial trends and sector performance:
| Company | D/E Ratio | P/E Ratio | P/B Ratio | Dividend Yield | EPS (₹) | ROE (%) | ROA (%) | Piotroski Score (0-9) |
|---|---|---|---|---|---|---|---|---|
| Zomato Ltd. | 0.02 | 180 | 9.5 | 0% | 1.05 | 6.5% | 3.2% | 5 |
| Paytm (One97 Communications) | 0.08 | Negative | 2.8 | 0% | -10.5 | -8.0% | -3.5% | 3 |
| Nykaa (FSN E-Commerce) | 0.10 | 130 | 13.2 | 0% | 1.2 | 9.0% | 4.0% | 6 |
| PolicyBazaar (PB Fintech Ltd.) | 0.06 | 95 | 7.8 | 0% | 2.4 | 8.5% | 3.8% | 6 |
| Freshworks Inc. | 0.05 | Negative | 6.5 | 0% | -5.2 | -5.0% | -2.5% | 4 |
| Delhivery Ltd. | 0.25 | Negative | 4.2 | 0% | -6.5 | -6.5% | -2.8% | 3 |
| Mamaearth (Honasa Consumer Ltd.) | 0.12 | 105 | 9.8 | 0% | 1.0 | 7.5% | 3.0% | 5 |
| Swiggy | 0.18 | Negative | 8.5 | 0% | -8.0 | -7.0% | -3.2% | 4 |
| Bajaj Housing Finance Ltd. | 5.2 | 14 | 1.8 | 1.2% | 68.5 | 18.0% | 2.8% | 7 |
Key Analysis of the Financial Metrics of 9 Best Unicorn Companies which became Public Companies :
Leverage & Stability (D/E Ratio)
- Bajaj Housing Finance has a very high Debt-to-Equity (D/E) ratio of 5.2, which is expected for an NBFC (Non-Banking Financial Company), as they rely on borrowed funds.
- Zomato, Paytm, and PolicyBazaar have low D/E ratios (<0.1), meaning they are not heavily dependent on debt.
- Delhivery and Swiggy have slightly higher debt (D/E > 0.15), indicating they rely on financing to expand operations.
Valuation & Profitability (P/E & P/B Ratios)
- High P/E Ratios (>100): Zomato (180), Nykaa (130), Mamaearth (105) → Indicates high expectations for future earnings.
- Negative P/E (Loss-Making): Paytm, Freshworks, Delhivery, Swiggy → These companies are still unprofitable.
- Low P/B Ratio (Undervalued Stocks): Bajaj Housing (1.8), Paytm (2.8) → These companies have relatively lower market valuations compared to their book values.
- High P/B Ratio (Growth-Oriented Stocks): Nykaa (13.2), Zomato (9.5), Swiggy (8.5) → Investors are paying a premium for future growth.
Earnings & Returns (EPS, ROE, ROA)
- Highest EPS & Profitability: Bajaj Housing (EPS = ₹68.5, ROE = 18%).
- Nykaa and PolicyBazaar have moderate EPS (~1.2 – 2.4), indicating stable growth.
- Negative EPS & Weak Returns: Paytm, Freshworks, Delhivery, and Swiggy are still loss-making, dragging down ROE & ROA.
Dividend & Stability
- Only Bajaj Housing (1.2%) pays a dividend, which is common for financial firms.
- All others have 0% dividend yield, as they reinvest earnings for growth.
Piotroski Score Analysis (Financial Strength Score)
The Piotroski Score (0-9) is a fundamental strength indicator based on 9 criteria across profitability, leverage, liquidity, and operating efficiency.
| Piotroski Score Interpretation |
|---|
| 7-9 → Strong Financial Health |
| 5-6 → Average Financial Strength |
| 0-4 → Weak Financial Position |
Company-Wise Analysis
- Bajaj Housing Finance (7/9) → STRONG
- Profitable, stable ROE & ROA, paying dividends.
- Moderate valuation with sustainable growth.
- Nykaa, PolicyBazaar (6/9) → GOOD
- Profitable, strong P/B, healthy returns.
- Good potential for growth, but valuation is expensive.
- Zomato, Mamaearth (5/9) → AVERAGE
- Profit-making, but still volatile.
- High valuation and reinvestment in growth reduce short-term profitability.
- Freshworks, Swiggy, Paytm, Delhivery (3-4/9) → WEAK
- Loss-making, negative EPS, weak returns on assets.
- High risk unless profitability improves.
Final Summary & Investment Outlook
Best Pick (Strongest Fundamentals): Bajaj Housing Finance (Stable, profitable, pays dividends). High-Growth Potential: Nykaa, PolicyBazaar (Strong brands, profitable, but high valuations).
Risky Stocks: Zomato, Mamaearth (Volatile earnings, expensive P/B).
Avoid for Now (Weak Financials): Paytm, Freshworks, Swiggy, Delhivery (Still loss-making).
Final Words :
Credit Ratings to 9 Best Unicorn Companies which Evolved into Public Sector Companies :
| Company | CRISIL Rating | CARE Rating | ICRA Rating | S&P Rating | Moody’s Rating |
|---|---|---|---|---|---|
| Zomato Ltd. | A- | Not Available | Not Available | Not Available | Not Available |
| Paytm (One97 Communications) | Not Rated | Not Available | Not Available | Not Available | Not Available |
| Nykaa (FSN E-Commerce) | Not Rated | Not Available | Not Available | Not Available | Not Available |
| PolicyBazaar (PB Fintech Ltd.) | AAA | Not Available | Not Available | Not Available | Not Available |
| Freshworks Inc. | Not Applicable | Not Applicable | Not Applicable | BB (Speculative) | Not Rated |
| Delhivery Ltd. | B | Not Available | Not Available | Not Available | Not Available |
| Mamaearth (Honasa Consumer Ltd.) | Not Rated | Not Available | Not Available | Not Available | Not Available |
| Swiggy | Not Rated | Not Available | Not Available | Not Available | Not Available |
| Bajaj Housing Finance Ltd. | AAA | Not Available | Not Available | Not Available | Not Available |
A Table Summarizing Financial Stability of 9 Best Unicorn Companies which evolved into Public Companies :
| Company | Financial Stability |
|---|---|
| Zomato Ltd. | Moderate (High growth but profitability concerns) |
| Paytm (One97 Communications) | Weak (Loss-making, regulatory challenges) |
| Nykaa (FSN E-Commerce) | Moderate (Strong brand but valuation concerns) |
| PolicyBazaar (PB Fintech Ltd.) | Moderate (Leading platform but slow profitability growth) |
| Freshworks Inc. | Weak (Loss-making, high competition) |
| Delhivery Ltd. | Moderate (Growing market but margin pressures) |
| Mamaearth (Honasa Consumer Ltd.) | Moderate (Strong brand but intense competition) |
| Swiggy | Weak (Heavy cash burn, intense competition) |
| Bajaj Housing Finance Ltd. | Strong (Stable, secured loan business model) |
Future Prospects & Investment Analysis of 9 Unicorn Companies which Evolved in Public Companies :
| Company | Future Prospects | Why It’s a Good Investment? | Bullish Factors | Bearish Factors |
|---|---|---|---|---|
| Zomato Ltd. | Strong growth in food delivery and quick commerce | Market leader, expanding into groceries (Blinkit) | High customer base, growing order volume, cost optimization | Intense competition, profitability concerns |
| Paytm (One97 Communications) | Expanding financial services, UPI dominance | Strong fintech presence, expanding lending services | Large user base, potential in lending & wealth management | Loss-making, regulatory challenges in banking |
| Nykaa (FSN E-Commerce) | Beauty and fashion e-commerce market expansion | Strong brand recognition, omnichannel presence | High-margin business, rising demand for online beauty | Valuation concerns, competition from other e-commerce firms |
| PolicyBazaar (PB Fintech Ltd.) | Growth in online insurance aggregation | Leading platform, strong insurance penetration potential | Shift to online insurance, cross-selling opportunities | Slow profitability growth, dependency on third-party insurers |
| Freshworks Inc. | SaaS industry expansion, global enterprise adoption | Strong product portfolio, global SaaS adoption | Increasing cloud adoption, enterprise contracts | Loss-making, competition from global SaaS giants |
| Delhivery Ltd. | E-commerce logistics boom, supply chain digitization | Largest logistics tech player, expanding network | Rising e-commerce demand, automation in logistics | High capital expenditure, margin pressures |
| Mamaearth (Honasa Consumer Ltd.) | Rising demand for natural beauty & personal care products | Strong brand presence, digital-first approach | Expanding product range, influencer marketing advantage | High competition, premium pricing limits mass adoption |
| Swiggy | Expansion in food delivery and Instamart (quick commerce) | Strong brand, aggressive expansion | Growing online food ordering, fast-growing grocery segment | Heavy cash burn, intense Zomato rivalry |
| Bajaj Housing Finance Ltd. | Housing loan demand, real estate sector growth | Strong financial backing, stable housing demand | High creditworthiness, secured loan business model | Interest rate fluctuations, regulatory risks |
So, overall I would like to say that Paytm, Swiggy, Delhivery are the Unicorns which evolved into Public companies but showing some losses at present. Bajaj Housing due to better fundamentals has become a giant that you should look for.
Nykaa & MamaEarth are also looking stable.
I would try to bring more Unicorn companies related details in the future also which would be helpful in making good investment related decisions. So stay connected.
I hope you like this article and Stocks analysis.
Happy Investing
More Reading :
Politics : USA News & Politics – News on USA Policies – Interesting Read
Stocks & Economy : RBI Liquidity Infusion related & Tata Power related News & Views – Interesting News
