By Malvika Gurung
Investing.com -- Shares of One 97 Communications Ltd (NS: PAYT ), the parent company of digital payments major Paytm was last seen trading 1% lower at Rs 1,765.1 on Monday, after dropping almost 5% in early trade today, following its weak earnings report for the September-ending quarter released on Saturday.
Despite posting a revenue jump of 63.6% YoY to Rs 1,086.4 crore, the Australian brokerage Macquarie maintained its underperform rating on the fintech stock, setting its target price at Rs 1,200/share.
It stated that the company’s losses by the end of H1FY22 have reached 70% of its FY22 estimates and that the stock trades at an expensive rate of 22 times its FY23 price to sales.
Another brokerage firm JM Financial (NS: JMSH ) has initiated a sell rating on the stock with a target price of Rs 1,240/share, stating that Paytm’s business model of spreading into multiple segments but failing to gain leadership in none except payments, will drive the company towards MTU growth over monetization and profitability.
The fintech major has reported a widening loss of Rs 473 crore for the September quarter, up 8.5% YoY and 24% sequentially, majorly due to an increase in payment processing charges. The total direct expenses of the company grew 32% YoY to Rs 825.7 crore.
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