Paytm Shares Zoom Despite Losses Widening in Q4; Upto 110% Upside Expected

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Paytm Shares Zoom Despite Losses Widening in Q4; Upto 110% Upside Expected
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the fintech major company Paytm (NS: PAYT ) surged 8.3% to Rs 623.2 apiece at the time of writing, even though its consolidated net loss zoomed 71.4% YoY to Rs 761 crore in the March-ending quarter.

The company’s revenue from operations jumped 89% YoY to Rs 1,540.9 crore in the quarter, led by non-UPI payments rising for over 2 quarters now, against the Street’s estimates of a steady decline.

Various brokerages have differing views on Paytm’s outlook. 

While some brokerages like Macquarie and Yes Securities have set a bearish target on the fintech stock, others like Goldman Sachs (NYSE: GS ) and ICICI Securities (NS: ICCI ) are bullish on the stock’s outlook.

Paytm is set to achieve break-even by the Sept FY23 quarter via continued revenue growth, along with cost moderation and operating leverage.

Goldman Sachs witnessed strong growth momentum for financial services in Q4, while cloud businesses remained robust. It sees the company’s cash burn improving, and has reiterated its guidance of adjusted Ebitda breakeven by Sept 2023.

It has set a target of Rs 1,070/share on the stock. 

ICICI Securities too expect Paytm to be EBITDA-positive by FY25E and has set a target of Rs 1,285/share on the stock, an upside of 109.72%, on the back of the customer lifetime value methodology.

On the contrary, Macquarie continues to remain bearish on Paytm, maintaining its target price of Rs 450/share, a downside of 26.55%, as it pegs the company’s profitability to be an uphill battle, and expects Ebitda losses to take up to 12 months to breakeven.

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  • Balraj Muthusamy @Balraj Muthusamy
    IF YOU BELIEVE THIS PEOPLE YOU WILL NEVER BUY PAYTM-SIMPLE ARITHMATIC-FROM 1900 TO 540 LOW-NOW 630-POSSIBLE TO GO ATLEAST 900 LEVELS
    Like 0

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