Paytm recently reported its third quarter FY2021 results, where it saw an 89% increase in its revenue to Rs 1,456 crore. The company’s income from payment services to merchants grew by 117% to Rs 585 crore, which is 40% of the total revenue for the quarter ended December 2021, as compared to the same quarter last year. EBITDA loss reduced to Rs 393 crore, excluding lump-sum esop The grant of 26.6 million Employee Stock Options (ESOPs) recorded an expense cost of Rs 390 crore in the third quarter of FY 2022.
Debt continues to be a major growth driver for the company with total debt of Rs 4.4 million in Q3 FY2021 taking the total loan value to Rs 2,177 crore. In the merchant loan category, the company registered an increase of 127% in the total value of loans to Rs 471 crore, with an average ticket size of Rs 120,000 to Rs 140,000. In the personal loan category, the company registered a growth of 1,923% to Rs 515 crore with an average ticket size of Rs 80,000-90,000. Fast growing buy now, pay later category, Paytm Postpaid With a presence of over 35 lakh online and offline merchants, the total value of its loans increased by 408% to Rs 1,190 crore.
Company’s top brokerage ratings:
Goldman Sachs
Stock Rating: Upgrade to Buy
Target Price: Rs 1460
Morgan Stanley
Stock Rating: Overweight
Target Price: Rs 1425
bofa
Stock Rating: Neutral
Price Objective: Rs 1130
dolat capital
Stock Rating: Buy
Target Price: Rs 2500
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