Netweb Technologies shares down 50% from peak as DeepSeek concerns mount; what lies ahead?

Shares of Netweb Technologies Ltd. are down another 10% on Tuesday, January 28, extending their fall for the eighth straight session. With Tuesday's fall, the stock has halved from its peak, which it had hit in November last year.

Shares of Netweb Technologies had hit a record high of ₹3,060 on November 27 last year.

The stock is also in focus after its one-and-a-half year or more lock-in period came to an end on Monday, January 27.

As many as 1.1 crore shares of the company, or 20% of its outstanding equity became eligible to trade on Monday as the shareholder lock-in ended.

It must be specified though that the shareholder lock-in ending does not mean all the shares will be sold in the open market. They only become eligible to trade.

Netweb is also seeing an impact due to the fall in shares of Nvidia on Monday night due to the emergence of DeepSeek, a Chinese AI start-up, which claims to be a free alternative to ChatGPT, establishing models at a lesser cost and with fewer chips.

The concerns over DeepSeek sent Nvidia's shares tumbling 17% overnight, leading to a $589 billion erosion in its market capitalisation. Netweb is a manufacturing partner for Nvidia.

In an interaction with CNBC-TV18 last week, the management maintained its financial year 2025 revenue guidance of ₹1,000 crore. It also maintained its annual revenue CAGR guidance of 30% to 35%.

Only two analysts have coverage on Netweb Technologies and both have a "buy" rating on the stock.

Shares of Netweb Technologies are down 10% on Tuesday at ₹1,462.6. However, the stock still remains nearly 200% above its IPO price of ₹500.