Shares of One97 Communications (Paytm) were upbeat on Monday, after brokerages projected up to 59% upside in its share price, following an update about its March quarter earnings and business updates for April.
Continuing their gaining streak to the 6th session, the company’s shares shot up 5.41% on Monday to reach an intraday high of ₹ 726.90 apiece on the National Stock Exchange (NSE). At 01:36 PM, its shares were trading at ₹ 725.45 apiece, up 5.20%.
One97 Communications‘ losses reduced sharply for the quarter that ended on March 31, 2023. Its consolidated net loss narrowed to ₹ 168 crores, from ₹ 761 crores a year ago and ₹ 392 crores in the October to December quarter. Moreover, its consolidated revenue from operations nearly climbed 52% year on year (YoY) to ₹ 2,335 crores.
The company announced its earnings on Friday, after market hours. an increase in GMV, higher merchant subscription revenues, growth of loans disbursed, and full years’ UPI incentives reported during the quarter aided its performance.
There was an increase in the adoption of subscription services for payment devices, such as Soundbox and POS machines. Over 68 lakh merchants are paying for this subscription, against 29 lakhs as of March 2022.
Targets
Motilal Oswal
The domestic brokerage estimates that the company will achieve EBITDA breakeven by FY 25. It values the stock at ₹ 900.00, which implies an upside of 24.06% as compared to its share price of 725.45 apiece.
Citi
Citi has a buy rating on the stock with a target price of ₹ 1,144. This translates to an upside of 57.70% as compared to its current share price.
“Despite competition, Paytm continues to be ramping up growth as well as monetisation while taking leadership in new product development (devices, UPI-Lite etc.),” it said.
Goldman Sachs
Goldman Sachs has a buy rating on the stock with a price target of ₹ 1,150 apiece. This translates to an upside of 58.52% as compared to its current share price.
The brokerage firm stated that Friday’s Q4 earnings should largely put to rest debates around Paytm’s business model traction and profitability. It added that the resolution of outstanding regulatory issues (ban on PPBL and online merchant onboarding) is the next set of catalysts for the stock.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
