Brokerage firm JM Financial Institutional has launched sell rating and cut its target price on Paytm owner One97 Communications Ltd.
JM Financial sets its target price 1240 per share 1783 per share.
Paytm is Lost about 17.16% Since listing, expiring 24,000 crore of market value. At the IPO price, the company was worth 1.39 trillion. its issue price was 2,150 per share.
“Paytm faces tough challenges in its customer acquisition engine, which will slow its revenue growth in the core payments business, while the scale-up of its associated ecosystem businesses (commerce, cloud and financial services) remains to be desired. In our view, Paytm JM Financial has stated in a note to its investors that it will need to continue funding for its MTU growth and thus the road to profitability is largely due to the growth of other businesses. depends on the trajectory.
JM Financial reports that while ‘Buy Now Pay Later’, loan origination and merchant credit offer a huge opportunity canvas, building a successful lending business is a lengthy process and against formidable opponents with razor-sharp focus and Requires top performance. In addition, Paytm will need to adapt itself to this evolving regulatory environment for digital lenders; This, in our view, is likely to be more drastic than favorable, it added.
The firm said on Saturday that its net loss increased 474 crore in the September quarter 437 crore a year ago. Revenue up 64% 1090 crores.
“We anticipate GMV CAGR of 41.1%, Revenue CAGR of 36.1% and GMV/MTU CAGR of 18.2% for Paytm over FY 2011-26E. However, even with our strong growth expectations (which in turn MTU is a function of ability to fund growth through cashback/discount), and an EBITDA breakeven till FY27E, keeping us valuation rich and the path to profitability fraught with high performance risks in context”, JM Financial added in the report. Gaya.
Earlier on November 19, brokerage Macquarie had introduced an underperform rating on the stock and lowered its target price by 40%. 1200 per share, while calling the company a ‘cash guzzler’, citing Paytm’s lack of focus and direction.
As on November 20, Paytm reported the Overall Gross Merchandise Value (GMV) of 832 billion (about $11.2 billion) in the month of October 2021, as a part of its latest disclosures with stock exchanges on Sunday evening.
Paytm said that its monthly transacting users also grew 35% year-on-year to 63 million in the month of October 2021. Earlier in October 2020 47 million monthly users were reported. Average monthly active users for the quarter ended September 30, this year, stood at 57 million,
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