Digital payments and financial services firm One97 Communications, which operates under Paytm brand, posted a consolidated loss to 778.5 crore in December 2021 quarter, widened from 535.5 crore in the year-ago quarter. Paytm shares recover from early lows as stock gains over 2% 972 on BSE in early deals on Monday.
Fintech firm’s consolidated revenue from operations up nearly 88% 1,456 crore during the quarter reported from 772 crore it posted in the same quarter last year.
Analysts at Goldman Sachs expect Paytm’s strong topline growth to help allay investor concerns about declining payout rates in recent years. Furthermore, Paytm continues to gain market share in both UPI and non-UPI, and is seeing strong traction in its lending business.
“Our analysis shows that the current share price is indicating a number of headwinds including the MDR cap, declining market share for Paytm and a fairly slow ramp-up of Paytm’s financial services, which we see as impossible. lets see. with our revised target price 1,460, we upgrade the stock from neutral to buy,” Goldman Sachs said in a note.
Gross Merchandise Value (GMV) up 123% year-on-year 2.5 lakh crore during the third quarter. Paytm’s payment services to consumers see a 60% increase 406 crores from 254 crore and payment services to merchants more than doubled.
“We believe Paytm is well positioned to capture the share of digital payments in India and see Paytm’s business model characterized by a network effect,” Goldman Sachs said.
Paytm, which made a disappointing debut in the stock markets in mid-November, has seen its share price more than half its issue price on repeated concerns over valuations from analysts.
Sumeet Bagdia of Choice Broking believes if Paytm stock breaks above this More upside is possible on the counter at the 1,000 level.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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