Paytm Share: Shares of One97 Communications, parent of the fintech firm Paytm, the stock rose 4 per cent to hit a three-month high of Rs 739 on the BSE in Thursday’s trade amid heavy volumes. At 10:55 am, Paytm traded at Rs 737, compared to a rise of 0.43 per cent in the S&P BSE Sensex.
stock price history
Paytm Stock Traded at its highest level since March 11, 2022. In the last two months, the stock has gained 36 per cent and recovered 44 per cent from its record low of Rs 511 touched on May 15, 2022.
Despite the sharp jump in the last two months, Paytm has underperformed the market with a fall of 34 per cent in the last six months, while the Sensex has lost 12 per cent. The stock is currently trading down 66 per cent against its issue price of Rs 2,150 per share. Paytm made its debut in the stock market on November 18, 2021. It hit a record high of Rs 1,961.05 on its listing day i.e. November 18, 2021, but has failed to touch its issue price since listing.
Paytm’s Gross Merchandise Value (GMV) in the April-June quarter of FY 2022-23 (Q1FY23) remained strong as it registered a strong growth (over 101 per cent) of ₹2.96 trillion. Consumer engagement on Paytm Super-App is at its highest, with Average Monthly Transaction Users (MTU) for Q1FY23 at 74.8 million, up 49 per cent year-on-year.
The total number of loans disbursed grew by 492 per cent year-on-year to 8.5 million in Q1FY23 (v/s 1.4 million in Q1FY22). The total value of loans disbursed grew by 779 per cent year-on-year to Rs 5,554 crore in Q1FY23 (from Rs 630 crore in Q1FY22). The lending business is now witnessing disbursements at an annual run-rate of Rs 24,000 crore. The average ticket size is witnessing a steady increase due to the rise in personal loans.
What do analysts say?
In Paytm’s case, Yes Securities expects overall revenue growth from operations to grow 17.5 per cent QoQ. “With steady loan disbursements and new equipment additions, we expect Paytm to post healthy sequential growth in revenue. However, RBI’s restriction on adding customers for Payments Bank on March 11 will have its effect,” it said.
ICICI Securities expects QoQ operating revenue growth to increase by around 16 per cent. “With management’s focus on improving its operating profitability, we expect some of its direct, employee and software expenses to decline sequentially, which should improve its adjusted EBITDA (EBITDA before ESOPs),” Said it.
Paytm derives about 78 percent of its revenue from the payments and financial services division and 20 percent from commerce and cloud services.
“We expect Paytm to see strong revenue growth across all of its business segments, thanks to device monetization in payments, cross-selling of financial services, ticketing recovery and increasing ad monetization. We see revenues growing at 40 percent CAGR from F22-26 to $2.8 billion and CMs growing at 44 percent by FY26E. We see it maintaining the highest revenue and profit levels among local vertical and global horizontal peers,” analysts at JPMorgan said in their recent report.
Santosh Meena, Head of Research, Swastika Investmart Ltd, said: “The counter found a base at the 500 level as a period of money destruction unfolded after a few price buys. Now, it is witnessing a breakout of the key resistance level of Rs.700 with good volume, which is likely to move towards the Rs.870/990 level for a short period. On the downside, 670 will act as an immediate and strong support level.
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