The share price of this prominent E-commerce firm gained by 9 percent to an Intraday high of Rs 438.95 per share on Thursday after the company partnered with Samsung to Bring Travel & Entertainment Services to Samsung Wallet in India.
With a market capitalization of Rs 27,545.71 crores, at 12:03 pm, the shares of One 97 Communications Ltd commonly known as Paytm among the public moved up around 8 percent, trading at Rs 433.25 a piece on Thursday’s afternoon session. Comparing today’s high of Rs 438.95 per share and to a previous close of Rs 402.65 per share, the shares surged by 9 percent.
As per the company’s filings, the firm submitted a withdrawal application for being a manufacturer of general insurance products which was accepted by the Insurance Regulatory and Development Authority of India (IRDAI). This move by Paytm aims to focus more on their insurance distribution in the Health, Life, Motor, Shop, and Gadgets sectors through their subsidiary, Paytm Insurance Broking Private Ltd. (PIBPL).
The company also partnered with Samsung to Bring Travel & Entertainment Services to Samsung Wallet in India. With this partnership, Galaxy smartphone users can use Paytm to book flights, buses, movie tickets, and events using the ‘Add to Samsung Wallet’ functionality.
Examining the financials of One 97 Communications Ltd on a YoY standpoint, the revenue from operations increased by 24.8 percent from Rs. 7,990 crores in FY22-23 to Rs 9,978 crores in FY23-24. While the net losses of the firm decreased from Rs. 1,776 crores in FY22-23 to Rs 1,422 crores in FY23-24.
The company derives its revenues by providing Payment services, marketing services, and financial services. As per the filings of the firm, the operating revenue has moved up by 256.1 percent From Rs 2,802 crores in FY21 to Rs 9,978 crores in FY24.
Regarding the company’s future plans, they anticipate their Q1FY2025 revenue to fall between Rs 1,500 crores and Rs 1,600 crores. Additionally, the company intends to increase its marketing investments to attract more customers, while also focusing on optimizing its cost structure through the creation of a more streamlined organizational framework.
The shares of this company experienced a decline of 48.59 percent in the last year and a further decrease of 28.61 percent in the past 6 months.
As of March 2024, the firm’s shareholding pattern stood at 32.74 percent for the public, 60.40 percent for foreign institutional investors, and 6.86 percent for domestic institutional investors.
Incorporated in 2000, One 97 Communications Ltd is India’s leading digital ecosystem for consumers as well as merchants. The firm offers services in digital payment and finance along with commerce and cloud services through their digital product Paytm.
Written By Zahal
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