The stock price of One 97 Communications, also known as Paytm, went down on Wednesday as investors sold their shares. Over 6.5% of Paytm stock has gone up in the last seven trading days. Yes Securities is the latest company to raise its target price for Paytm because it thinks the company will make a lot of money in Q4.
At the time of writing, a share of Paytm stock ended the day on BSE at 648.30, which was down by 1.43%. Near the day’s low price of 644.35 per share, the stock traded on the exchange. It is worth more than 41,050 crore on the market.
From March 27 to April 11, Paytm stock did nothing but go up. During these days, the upside in Paytm is about 6.51%. So, investors are selling their stocks on Wednesday to cash in on their gains. On Dalal Street, Paytm stock has jumped by almost 22% so far this year. Yes Securities is the latest brokerage to raise its target price for Paytm shares from 600 per share to 700 per share. Yes Securities, on the other hand, has kept its “Neutral” rating on the fintech giant.
In its report, Yes Securities said that Paytm’s revenue is likely to grow steadily due to steady loan payments and the addition of new devices.
For Q4FY23, the price of Paytm stock is: One 97 Communications, also known as Paytm, lost money Wednesday as investors sold their shares. Over 6.5% of Paytm stock has gone up in the last seven trading days. Yes Securities is the latest company to raise its target price for Paytm because it thinks the company will make a lot of money in Q4.
At the time of writing, a share of Paytm stock was worth 647.70 on BSE, which was down by 1.52%. Near the day’s low price of 644.35 per share, the stock traded on the exchange. It is worth more than 41,050 crore on the market.
From March 27 to April 11, Paytm stock did nothing but go up. During these days, the upside in Paytm is about 6.51%. So, investors are selling their stocks on Wednesday to cash in on their gains.
Yes Securities is the latest brokerage to raise its target price for Paytm shares from 600 per share to 700 per share. Yes Securities, on the other hand, has kept its “Neutral” rating on the fintech giant.
In its report, Yes Securities said that Paytm’s revenue is likely to grow steadily due to steady loan payments and the addition of new devices.
Yes Securities expects its revenue from operations to grow by 17.8% from Q3 to Q4 of FY23, to 2,430 crore. This means that the previous estimates need to be raised by 12.2%. It thinks that EBITDA after ESOP (before other income) will be (248 crore), which is more than the previous estimate of (200 crore) (528 crore). It also has a PAT that goes up from 508 crore to (307 crore). It thinks that the proportion of Payment Processing Charges (PPC) to Payments Revenue will go up to 63% from 64% in Q2FY23.
Also, Paytm’s total expenses (excluding PPC) grew by 11% QoQ, compared to 5% in Q2FY23. This led to an EBITDA margin (excluding other income and ESOP costs) of (-22.4%), which was better by 572 bps QoQ.
Paytm has already shared its operational performance for the fourth quarter of FY23. Between January and March 2023, the company had 90 million average monthly transacting users (MTU), which is 27% more than the same time last year. This shows that our customer base is still growing. Merchant Payment Volumes (GMV) for the quarter were $36.2 billion, which was a 40% increase from the previous year.
In partnership with our lender partners, the fintech’s loan distribution business continues to grow. In March 2023, 4,468 crore ($544 million) and 4.1 million loans (y-o-y growth of 63%) were given out through the Paytm platform. In Q4FY23, the total amount paid out went up by 253% from the previous year to 12,554 crore ($1.528 billion).
Paytm also grew its lead in offline payments. Now, 6.8 million merchants pay subscriptions for payment devices, which is 1 million more than in the quarter that ended in March 2023.
Paytm’s payments customers and merchants give it access to a large market, which gives it a lot of room to grow. The company keeps working with its partners to keep the book’s quality in mind.
Also, on Paytm, the brokerage finds that Total Expenses (excluding PPC) grew by 11% QoQ, which was faster than the 5% growth in 2QFY23. This led to an EBITDA margin (excluding Other Income and after ESOP cost) of -22.4%, which was 572 bps better QoQ.
Paytm has already shared its operational performance for the fourth quarter of FY23. Between January and March 2023, the company had 90 million average monthly transacting users (MTU), which is 27% more than the same time last year. This shows that our customer base is still growing. Merchant Payment Volumes (GMV) for the quarter were $36.2 billion, which was a 40% increase from the previous year.
In partnership with our lender partners, the fintech’s loan distribution business continues to grow. In March 2023, 4,468 crore ($544 million) and 4.1 million loans (y-o-y growth of 63%) were given out through the Paytm platform. In Q4FY23, the total amount paid out went up by 253% from the previous year to 12,554 crore ($1.528 billion).
Paytm also grew its lead in offline payments. Now, 6.8 million merchants pay subscriptions for payment devices, which is 1 million more than in the quarter that ended in March 2023.
Paytm’s payments customers and merchants give it access to a large market, which gives it a lot of room to grow. The company keeps working with its partners to keep the book’s quality in mind.
Source: Team CurrencyVeda
