With the rising markets, the shares of One 97 Communications Ltd (Paytm) have also risen by 5.3% till 11.30 am on Monday and were at Rs 826 levels. In the last five days, the stock has been volatile and has zoomed by approximately 10%. In the past month, the stock price has added 18%.
The stock has been rallying after it posted its quarterly result on Friday. The consolidated revenue from operations increased by 89 per cent to Rs 1,680 crores in Q1FY23 up from Rs 891 Crores which it earned in the same quarter a year ago.
Their net losses widened to Rs 644 Crores in the quarter under review as against Rs 380 Crores which it incurred in Q1FY22.
In addition to this, the company’s contribution profit, which excludes taxes and marketing expenses, has grown multifold and stood at Rs 726 crores in Q1FY23 up from Rs 245 crores in Q1FY22.
The scrip was listed on the Indian stock exchange in November last year at Rs 1560 per share. Currently, it is trading at a discount of approximately 47% from those levels.
The stock reached its 52-week low of Rs 510 in May 2022. However, the stock has been on an upward trend since then and is now trading 50% higher from its low.
Goldman Sachs has been bullish on the stock for quite some time now. It has revised the ‘Buy’ target to Rs 1,100 a share which represents an upside of 34% from the current levels.
“Forecast a robust 37% FY22-25E rev CAGR, at the higher end of global fintech peers. We believe the next catalyst could be the potential resolution of the user onboarding ban on Paytm Payments Bank,” said the brokerage.
One97 Communications (OCL) is the parent entity of the leading Indian mobile payments and financial services company Paytm. It offers a range of digital payment and financial services to consumers and merchants in India.
Written by – Anoushka Roy
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